There are many things that entrepreneurs can do in business to increase their odds of success says Edmonton bookkeeping. Industry Canada says that 50% of Canadian businesses fail, and only 11% seek professional help. Many businesses need help, but they are not asking for help when it is needed. Hiring a bookkeeper can ensure that business owners keep their accounting costs low, and stay organized through the year so that they do not file late, and they do not get deemed penalties by the Canada revenue agency. If business owners hire a bookkeeper, can significantly help them stay organized in their business, and help them understand if they are making enough money in their business, or if they need to go and find more.
A common scenario for entrepreneurs, is that they keep all of their receipts throughout the year in a bag in their truck, or in a box, and they do not have information on what was paid with that receipt, and they bring this disorganized mess to their accountant. Their accountant has to then go through that badge of disorganization, and it ends up costing business owners much more money to file at their year-end because the accountant is charging them high amounts simply to organize the business owner. If an entrepreneur hires Edmonton bookkeeping, then they will be able to organize the receipts for the entrepreneur, and a much lower rate than the accountant will charge. This can end up saving the business owner a lot of money.
Business owners should also hire Edmonton bookkeeping in their business not just to avoid a high fee associated with organizing their receipts, but by being disorganized, a business owner can violate and trigger penalties from the Canada revenue agency. By being proactive and allowing their bookkeeper to help them throughout the year they can keep their receipts and financials organized ahead of time so that they can file on time, and avoid getting penalties assessed to them.
Another reason that it is important that is entrepreneurs stay organized throughout the year, because if a business owner gets an assessed audit from Canada revenue agency. A business owner will have 30 days to respond to the audits from the day the letter was sent in the mail. And Canada revenue agency does not usually allow extensions. If business owners ignore the audits, Canada revenue agency will assess them the amount of tax that they deem fit. That is usually the amount the business did in the previous year. However, if business owners are organized, then they would be able to easily respond to the audits and avoid penalties.
For all these reasons, business owners can stay organized, avoid fees, and save money by hiring Edmonton bookkeeping. Even if a business owner is not interested in saving money, the help that saying organize can give them can allow them to operate their business more smoothly, and that can help them grow their business a lot easier.
Many entrepreneurs do not understand why they would need Edmonton bookkeeping when they have a great accountant. However, business owners should understand that while the accountant can do a lot for them, a bookkeeper can take on a lot of the tasks that an accountant does at a much lower fee, but also the bookkeeper can help business owners stay organized throughout the year, and have up-to-date financial statements on a regular basis so that an entrepreneur does not have to wait until year-end with their accountant in order to see the financial health of their business.
By waiting until year-end, in order to review the transactions in their business account, can create inaccuracies for the business owner and in their financials because it is much less likely that an entrepreneur is going to be able to remember what each and every receipt is for one year later. By using Edmonton bookkeeping and staying on top of these receipts can mean less time in figuring it all out and more accurate financials. Also, business owners may understand how easy it is to lose receipts, and can be a lot easier to organize the receipts once a month because they will be less likely to have lost them in one month as it is a year.
Another reason why utilizing Edmonton bookkeeping can help business owners is because they will be able to get an interim balance sheet. Information contained in the interim balance sheet includes what the cash is in the business, Accounts Receivable, assets, and accounts payable. This is extremely important information for business owners to have throughout the year, and not just from their accountant at the year-end. Especially because when they get the year-end from their accountant, it is typically 6 months after their fiscal year-end has passed, therefore the financial information contained in it is less likely to be accurate whereas the interim balance sheets from the bookkeeper, can be a lot more productive to review.
The information that is available on an income statement that is received from a bookkeeper is the revenue of the business, which is at the top of the statement, the cost of goods sold the expenses in the business as well as profits. A well-organized income statement from Edmonton bookkeeping is easy to read, and expense account is numerically descending order so that the most expensive items appear at the top of the list. The reason why a bookkeeper would organize it this way is so that a business owner can easily see what the most money is spent on, and if a business owner wants to reduce expenses, they should spend their time on the top half of the income statement instead of the bottom where the least impactful expenses are going to be such as bank fees. A great organized income statement will be one page so that entrepreneurs can easily read and understand it, so it can be a powerful decision-making tool. We would love to help you today! So give us a call at.