If an entrepreneur underestimates the importance of the information that an Edmonton bookkeeper looks after, it can cause them to hire a bookkeeper based on price, which could actually end up being far more expensive. The professional who specializes in extinguishing and capping oil well fires Red Adair has said this about hiring the right professional for the job “if you think it is expensive to hire a professional to do the job, wait until you hire an amateur.” The importance of the interim financial information that bookkeepers take care of, are extremely important because they can help any entrepreneur grow their business by making great business decisions. And if they do not hire the right person, it could cause their finances to be incorrect, which could cause them to make poor decisions, and negatively impact their business. Incorrect finances are also very expensive and take a lot of time to fix, and because the business owner to have to pay twice once for the poor bookkeeping, and once again for it to be fixed. Business owners should ensure that their hiring the right bookkeeper from the start, so that they do not put their business at risk, and so that they have the best financial information early on in their business.
One of the most important things that entrepreneurs should consider when hiring in Edmonton bookkeeping company is that anyone can call themselves a bookkeeper, so they should not just look for bookkeepers who say that they are qualified. They need to be asking the right questions in order to ensure they have the right knowledge to work for their business. They should be looking for bookkeepers that have had experience working in a public accounting office, or that they have experience working directly with an accountant. This information will help bookkeepers understand what information the entrepreneurs going to need, and also to keep things organized for the accountant to take at year-end. Another great thing to keep in mind is that accounting students can be great resources as well, because they need to gain three years of experience before they can get their designation, therefore if a business owner is able to hire a student of an accounting program, then they can end up with an extremely knowledgeable person.
The Edmonton bookkeeping company they hire for their business also needs to be familiar with accrual accounting, because there can be many errors that occur in this type of accounting. Been a business owner provides a service that gets paid at a later date, can trigger errors if a bookkeeper does not know how to deal with it. They need to be able to understand but they need to do with late payers, how to charge interest, and what happens if a customer pays the wrong amount.
The hiring the right business professional with the right experience, business owners can ensure that they have the best bookkeeper possible, which can help their business stay organized so that they can make the best financial decisions possible.
When hiring an Edmonton bookkeeping company, entrepreneurs need to do so very carefully. Industry Canada says that half of all Canadian entrepreneurs fail within five years of opening their business, and 29% say that they failed because they ran out of money in their business. By helping entrepreneurs have up-to-date and accurate interim financial statements is one of the most important things that Edmonton bookkeeping company can do to help them avoid running out of money in their business. Because of the importance of a great bookkeeper in their business, entrepreneurs should be careful who they hire, and hire the best professional they can.
Another way that Edmonton bookkeeping companies can help entrepreneurs avoid financial problems, is by helping them pay their taxes properly. There are several different taxes that bookkeepers need to know about and keep organized with. There is payroll taxes, GST, federal and provincial. Not only does a bookkeeper needs to know how much of each tax to pay, but how to calculate the amounts, as well as when to remit those payments and to whom. For example, they must know what payroll taxes need to be withheld from the employee’s checks, as well as how much. And when its remittance date to Canada revenue agency is. GST needs to be calculated differently because not all suppliers have GST applied to them. And it has a different remittance date. Also, businesses in Alberta have to pay their federal and provincial tax is separate, one to CRA and one to the province directly. This is actually not the way it is done in any other province in Canada, so having the knowledge in this can be invaluable.
The second thing that businesses ensure their Edmonton bookkeeping company has knowledge in, is shareholder loan accounts. This is how businesses keep track of all of the transactions that the corporation owes the entrepreneur and that the entrepreneur owes the company. At the end of the year, all of the money that a business owner has taken out of the business needs to have personal tax paid on it. If a bookkeeper has incorrectly attributed business expenses to the shareholder loan account, business owners can end up paying up to 37% more taxes on those transactions. This can be significant for the business owner, and very costly. Businesses should understand that their bookkeeper needs to know what is shareholder loan account is, and how to attribute things to it properly.
By knowing all of the different things that there Edmonton bookkeeping company needs to know in their business to help them avoid running out of money can be significant. When finding the right bookkeeper for their business, entrepreneurs can ensure that not only at the ending up with up-to-date financial information that can help guide them towards the best financial decision for them in their business but also by managing their finances properly, can help entrepreneurs avoid paying more money either in additional taxes or in tax penalties are paying incorrectly. Business owners need to understand how important a great bookkeeper is in their business.