Entrepreneurs need to consider that the rights Edmonton bookkeeping service in their business can mean the difference between succeeding in business, or not. Since 50% of all Canadian businesses end up failing by their 5th year in business, and 29% of those entrepreneurs say the reason why their business failed is because they ran out of money, by hiring the right bookkeeper for their business, business owners can significantly impact that statistic in their own business and avoid running out of money in their business, because they are better able to make informed financial decisions in their business.
One of the most important things that Edmonton bookkeeping services will do for an entrepreneur, provides them with correct and up-to-date interim financial statements for their business. Not only is receiving balance sheets and income statements on a regular basis important, but ensuring that the information is accurate is just as important. The reason this is extremely important to business owners is that anytime a business owner needs to make financial decisions in their business, by consulting their financial statements, business owners can make more informed decisions. If a business owner wants to purchase an asset, if they review their balance sheet and income statement, they may discover that now is not a great time to make that purchase, and they can make a plan on when to purchase it next. Without consulting their financial statements may cause a business owner to make that purchase that could end up causing them financial hardship later in their business, or even cause them to run out of money and be forced to close their business.
It is extremely important that business owners understand the value of receiving up-to-date financials on a regular basis from their Edmonton bookkeeping service so that they can focus on getting the best bookkeeper they can for their business. One mistake that business owners sometimes make, is trying to save money in their business by hiring the most inexpensive bookkeeper that they can find. Entrepreneurs who do this may discover that they end up with incorrect financial statements in their business, or they may end up not receiving them on a regular basis at all. This can do a huge disservice to entrepreneurs whenever they need to make financial decisions in their business because by not having up-to-date financial information means that a business owner will not truly understand the impact of that decision in their business until later, or if they have incorrect information in their financial statements, they may think they are making the best decision when they are not.
When entrepreneurs are considering what Edmonton bookkeeping service to hire in their business, they should consider this Jim Collins quote that says, “those who build great companies understand that the ultimate throttle on growth for any great company is not markets, or technology, or competition, or products. It is the one thing above all others: the ability to get and keep enough of the right people.”
But the right Edmonton bookkeeping service can do for entrepreneurs, is to help them make great financial decisions in their business. Since half of all Canadian entrepreneurs fail in business before their 5th year, and 29% of those entrepreneurs say that the reason why their business failed was because they ran out of money, the right bookkeeper can significantly impact this statistic for entrepreneurs, by allowing them to have up-to-date financial statements in order for business owners to be able to make informed decisions in their business.
Another statistic from Industry Canada says that only 11% of entrepreneurs ever seek professional help when they need it. The hiring great Edmonton bookkeeping services for their business, entrepreneurs should consider that great professional help that they can use in their business to make great decisions. However, business owners need to be hiring the right bookkeeper for their business, one who is experienced, and communicative, so that business owners can get the right information when they need it.
Entrepreneurs should consider that there is no regulation to the bookkeeping industry, and there are no qualifications that bookkeepers are required to have in order to call themselves a bookkeeper. Because of this, it is extremely important that business owners are interviewing potential Edmonton bookkeeping services before they hire them, not only to ensure that they are experienced and what they do but so that they are going to be the right fit for the business owner. Some questions that should be considered when interviewing bookkeeping services, is how much experience they have. Since anyone can call themselves a bookkeeper, by finding out the depth of experience they have, can help entrepreneurs understand how knowledgeable this bookkeeper can be for their business.
Another great rule of them is to ask them if they have any experience working in a public accounting office. While that is not absolutely necessary, they can speak to the level of experience and knowledge that bookkeepers have in what not only entrepreneurs need, but in what chartered professional accountants are going to require from bookkeepers in order to do the year-end financials for business many students who are working towards getting their chartered professional accountants designation also work as bookkeepers as they are getting their degree. This is also extremely helpful for entrepreneurs to have, because accounting students will also have unique knowledge of what information business owner needs to get in order to operate their business, but also what information they are going to need to provide so that the business owners accountant can do a great job on their financial statements.
By taking the time to consider the right Edmonton bookkeeping service for their business, business owners can hire the best fit for them, someone that they are going to be able to work with closely to get the information that will help them grow their business and make great financial decisions.