Um, this waiting to your ed to review transactions, create inaccuracies. Yeah, absolutely. Um, you can usually, you can remember what you’ve done in the last two weeks, but you might not remember what you did a year ago. Um, again, you can lose receipts so easily, um, chances of you losing them in two weeks, again, a lot less than if you, um, wait for a year. You don’t know, sometimes you don’t think that receipt is relevant and you just pitch it out or, or whatever. So absolutely, it can create inaccuracies. Um, what information is available on an interim balance sheet from your bookkeeper? Yeah, so the, the interim balance sheet, it should have your cash. It’ll have your, um, what people owe you. So your accounts receivable, it’s gonna have your assets. Um, the um, you know, maybe like you’re the one that’s got the truck and that’s your, you use that for your business all the time with Edmonton Bookkeeping.
It’s gonna show on your balance sheet. It’s going to show how much that cost, how much it’s depreciated. Um, it’s going to show your balance sheet is also going to show you, um, what you owe people. Maybe you have loans for that truck or other loans for your business. That’s all going to be on the balance sheet. Absolutely. Um, what information is available on an income statement from your bookkeeper? So the income statement, it’s going to have your, um, revenue at the top.
Um, it’s gonna ha and then it’s going to have possibly costs of goods sold and then your, uh, expenses. And of course it’s going to show you the profit that you’ve made, um, is a well-organized income statement, easy to read? Yeah, absolutely. So if your bookkeeper has your, uh, income statement organized really well, what you should be able to see is you should be able to see your, um, your revenue, like I said, and then your cost of good souls with Edmonton Bookkeeping.
And then you have your, um, your expense accounts and your expense accounts should be, um, numerically descending so that when you’re looking at it, you look at the top item and see that that’s the thing that you spend the most money on so that you’re not looking, you know, focused on say bank charges. That really in the whole scheme of things are, is irrelevant. Um, the other thing about a good income statement is if it’s only one page, it should just be one page long. Um, there shouldn’t be a whole bunch of different um, expense accounts that, you know, interest in bank charges, they can go into one, one account. So you don’t need a whole bunch of different accounts for bank charges or different types of, um, interest charges. Yeah. Cause some of them actually, they make distract you from actually getting the information that you need from [inaudible] words with Edmonton Bookkeeping.
Right. Um, so will it help me understand how much I can pay myself? Yeah, for sure. If you have your income statement planned out, um, if it’s well organized, again, you’re seeing how much you’ve made and how much you’re spending. So you’ll be able to see how much you can pay yourself or how much more work you need to go out and do to get some more money to pay yourself. [inaudible] absolutely. So you can’t just base it on how much you have in the bank because again, the balance sheet and income statement, go ahead and hand the income statement shows you how much you’re making it throughout the corporation. The balance sheet actually gives you the information on what your financial position is at the moment. Right? That’s right. So it’s very important to know and to understand these reports before you make the decisions of painting yourself or, um, being other people or your employees.
Yeah, that’s right. So, um, this having a bookkeeper or Edmonton Bookkeeping throughout the year allow you to make better decisions? Oh, absolutely. So when you’re a business owner, you’re making decisions day by date. Um, so some of those decisions, you can’t wait til your year end to make that decision if you don’t have your bookkeeping in order. How do you know if you can afford to buy that new truck or to hire a new employee or um, if you need to get out there and do some more work so that you can get some more revenue to pay yourself.
Um, definitely if you have that Edmonton Bookkeeping up to date throughout the year, those decisions are way easier to make. They just, um, you can see what it is that you have in your, in your business and you can decide that if, if that decision is appropriate for that time or maybe you just need to leave it for a little bit longer.
Yeah, for sure. Especially if you have employees that do pay by weekly, you can’t just depend on the, how much is it in the bank or is, are you doing bank reconciliations regularly? You have to make sure that, um, the, the checks that are outstanding will clear before you even pay your employees. Cause at the end of the day, you need to operate the business and make sure you have enough cash to sustain your business. Right? That’s right. Yeah. So I think that’s all we have for today. I hope you enjoyed our first episode. Um, please play it like, and subscribe, uh, to learn more information about, uh, our business or just bookkeeping in general. Um, and I’ll see you or talk to you guys later about Edmonton Bookkeeping.