One of the most important decisions that a business owner can ever make, is choosing the right Edmonton bookkeeping service and accountant for their business. Great companies understand the need to get good people. Jim Collins, the author of six business books including the bestseller good to great says, “those who build great companies understand that the ultimate throttle on growth for any company is not markets, or technology, or competition, or products. It is one thing above all others: the ability to get and keep enough of the right people.” Great financial professionals can help entrepreneurs make great financial decisions in their business, and since 29% of all failed entrepreneurs in Canada say the reason why their business failed is that they ran out of money, the importance of great bookkeeping cannot be overstated.
Many entrepreneurs believe that it is a great decision to hire the most inexpensive bookkeeper they can in order to save money on financial services. They believe, that their accountant will be able to fix any stakes made by their bookkeeper and that it is a good decision to help them save money. Unfortunately, since accountants and bookkeepers do two very different things, hoping that an accountant can catch errors at year-end may be foresighted. One of the things that a bookkeeper does differently than an accountant, is given the business owner interim financial statements including balance sheets and income statements. The accuracy of the sheets throughout the year is of extreme importance because business owners will use those statements in order to make financial decisions in their business. If those statements are incorrect, it could put the business in jeopardy for not being able to make great business decisions.
Because of this, business owners should understand how important it is to get great Edmonton bookkeeping services for their business. One way to do this is to ensure that they are interviewing each bookkeeper they are considering, to ensure that they are experienced enough to provide them with the services they expect. Some examples of questions that business owners can ask include have they gone through the CPA program, or are they currently working on getting their chartered professional accountants designation. Many students were working through this designation work as bookkeepers, which allows them to continue to develop their accounting skills. This ensures that they have a great knowledge of bookkeeping, but also what business owners need from their bookkeepers, as well as what accountants are going to require those financial statements. Other questions that are beneficial to ask include how much experience they have, and where they got their experience from if they have ever worked in a public accounting office.
When entrepreneurs hire the best Edmonton bookkeeping services they can for their business, they will be able to have the right information on a regular basis that can allow them to make the important financial decisions that can help them grow their business as well as be proactive to avoid financial disasters. When they do this, they can significantly avoid being one of the 29% of failed entrepreneurs who ran out of money in their business.
Entrepreneurs who do not hire the right Edmonton bookkeeping services for their business and instead hire based on low price may discover that being overcharged and under-serviced can negatively impact their business. Industry Canada says that 50% of all Canadian entrepreneurs fail in business, and 29% of those entrepreneurs say the reason why they failed is that they ran out of money in their business. Industry Canada says in the same survey that 11% of entrepreneurs ever seek professional help. Then business owners are able to hire great bookkeepers for their business, they can consider that one of the financial professionals they can utilize in order to help them make great decisions in their business.
One of the most important things to consider when it comes to hiring a bookkeeper in their business, includes what qualifications do their bookkeeper has? Since the bookkeeping industry is not regulated at all, and there is no governing body, there are no qualifications that bookkeepers require in order to call themselves bookkeepers. Because of this, business owners need to be very aware of who they hire when they call themselves a bookkeeper. In order to hire the best Edmonton bookkeeping service they can, entrepreneurs should interview those bookkeepers to see how much experience they have.
In addition to the level of experience, business owners should ask how often they are going to be receiving interim financial statements. Some bookkeepers save month-to-month is good, some bookkeepers a quarterly is okay, but business owners should hire bookkeepers that are committed to sending interim financial statements every two weeks. More often a business owner has up-to-date financial statements, the better their ability to make informed financial decisions in their business. This is especially important if entrepreneurs pay their staff biweekly, then they should be receiving their statements biweekly.
One of the last things that business owners should consider when hiring great Edmonton bookkeeping services, is how often they should be expected to speak to their bookkeeper. Many bookkeepers prefer to be very hands-off, but the hallmark of a great bookkeeper is that they are going to be talking to their business owner is often as they send them financial statements. This is going to ensure that a business owner understands those balance sheets and income statements, and are able to answer any questions, fix any errors, and fully understand those statements before they make their decisions.
When entrepreneurs are making the decision on which Edmonton bookkeeping service to hiring their business, they should choose carefully, do their research because, in order to build a successful company, they need to have great financial information at their disposal. When they hire a bookkeeper, they are the gateway to that great financial information that business owners will use on a regular basis to make well-guided business decisions that can help them grow.