If entrepreneurs do not understand the difference between their accountant and Edmonton bookkeeping company, they may not hire the best bookkeeper they possibly can and that would be a mistake. Many entrepreneurs think that bookkeepers and accountants do almost the same thing, so they do not need to hire a great bookkeeper when they have an accountant. And while the accountant in the bookkeeper or do work on the business finances, it would be a mistake to think that they can save money by ensuring that an accountant can fix the bookkeepers’ errors. But that would do, is because an entrepreneur to have to pay twice for their bookkeeping services. Once for the poor bookkeeper, and once for their accountant to fix it. If their accountant is fixing their bookkeeping, their risk and recharging a significantly higher amount than a bookkeeper would charge, so it does not make much sense for entrepreneurs to think that their accountant will be able to fix what a poor bookkeeper has done.
When hiring a great Edmonton bookkeeping company for their business, business owners should also keep in mind that there is no professional designation or governing body when it comes to bookkeepers, therefore anyone can call themselves a bookkeeper. When an entrepreneur is hiring the right bookkeeper for their business, they should know what questions to ask to ensure that there hiring someone with the right amount of knowledge, so that they can end up with the right interim financial statements they need in order to make informed financial decisions in their business.
Some questions that entrepreneurs should be asking their Edmonton bookkeeping company before they hire them is what kind of experience their bookkeeper has. Ideally, an entrepreneur should be looking to hire a bookkeeper that either has accounting experience or has worked in a public accounting office. That way, they can be familiar with what their accountant poor in a bookkeeper, and they can be familiar with how to keep their financial statements, and what an accountant is going to need from them. Students that have gone through the CPA program but have not yet gotten their designation make great bookkeepers, because they have the accounting background, and still need to article to get their designation.
Another reason why it is important for entrepreneurs to choose a and Edmonton bookkeeping company that has accounting knowledge is so that they can ensure that they are submitting the right amount of taxes to the Canada revenue agency. If entrepreneurs hire a bookkeeper that is not submitting the right amount of taxes, they could end up getting assessed with penalties for not paying the right amount of taxes, or not paying their taxes on time. For example, if the bookkeepers working on the company’s payroll, if they do not know what taxes they need to withhold, how much or when to remit them, entrepreneurs can end up with huge penalties. The hiring the right bookkeeper for their business, they can avoid paying unnecessary penalties and end up with great financial statements in their business.
Statistics Canada says that only 11% of entrepreneurs seek help when they need it, so they should consider hiring the right Edmonton bookkeeping company for their business. The right bookkeeper can help entrepreneurs end up with the right financial statements for their business, that can help them make financial decisions, and stay organized for their accountants year-end, as well as in case they get audited by Canada revenue agency.
Some of the things they should keep in mind when hiring a great Edmonton bookkeeping company is that since anyone can call themselves a bookkeeper, they should look for someone that has the right amount of experience. Knowledgeable Edmonton bookkeeping companies are going to understand some basic accounting knowledge, that will help them create accurate and up-to-date financial statements for business owners. For example, the right bookkeeper will know what a shareholder loan account is. Entrepreneurs should also know that a shareholder loan account is referring to all of the transactions that the entrepreneur owes the company, or that the company owes the entrepreneur. For example, if a business owner pays a company bill of their personal bank account, the corporation will end up owing that money back to the business owner. However, if a business owner takes out money from the corporation to pay for personal expenses, they will end up owing to the company. I understand the ins and outs of basic bookkeeping and accounting terminology, can help bookkeepers end up with the best financial statements the business owner needs.
Something else that entrepreneurs should know so that they can understand their Edmonton bookkeeping company, and also hire the right one for their business, is understanding what a bank reconciliation is, and why so important to do when on a regular basis. Basically this refers to an entrepreneur matching the transactions that they have made in their business against the transactions that their bank account has accounted for. What this does, is allows an entrepreneur to see how much money they have in their business that can be used. For example, if an entrepreneur has several checks that have been written but they have not been cashed yet if they look at their bank balance to see how much money they have to use, they may end up spending more money than they actually have in causing their checks to bounce. But by looking at a bank reconciliation, entrepreneurs are able to see easily the amount of money that they have with those pending transactions taking into consideration so that they do not overspend.
Iron the right Edmonton bookkeeping company, they can help entrepreneurs stay informed, as well as have the right interim financial statements for business owners to use to make informed financial decisions in their business. This way, they can make the best decisions possible and avoid making decisions that could put their business at risk.