Some of us are innately organized business owners who also love sticky notes and filing. But, as our business grows, it is difficult to keep track of finances on our own. If we find the right bookkeeper, they are not a full-time employee, instead, they are in the background of a business, only meeting occasionally if that’s what makes sense.
And, for most small businesses, that makes the most sense. Effortless, professional bookkeeping gives you peace of mind knowing someone with experience, is creating a spreadsheet, organizing, and ensuring the monetarily influenced data of your business is handled.
Are you a business owner trying to decide whether you need to hire a bookkeeper or accountant?
Bookkeeping is the day-to-day calculations of your business money. The bills that come in and the payments that go out are categorized, and the money is balanced with your business’s bank records. On the other hand, accountants offer financial reports based on a bookkeeper’s compilations; they interpret what these numbers mean, and if your company is large enough, this makes sense.
Similar to the comparison of drafting technologists to architects, bookkeepers need not obtain the more involved university degree needed to become an accountant; the latter comes with higher expectations from large businesses who rely on accountants to take responsibility for their financial insights and analysis.
Most businesses in Canada are referred to as small businesses for whom it is sufficient knowing a bookkeeper will interpret the numbers impacting their business weekly or monthly.
What will your bookkeeper do for you?
Bookkeepers maintain your general ledger, almost exclusively with bookkeeping software.
Your bookkeeper will keep you on your toes and that is a good thing. Bookkeepers love order, filing, and sticky notes. They will make sure you obtain the receipts required to write the expenses off at tax time.
A bookkeeper knows the legalities and subtle nuances of the Canadian tax system. If you haven’t been using a bookkeeper to do your business taxes, you have likely paid more to the government than you needed to. A bookkeeper is worth every penny when you are surprised to see you may not, for instance, need to pay any taxes.
She knows the expenses that you can legally submit to the government at tax time. Many business owners do not know whether an expense is part of their office or finished product cost or whether a percentage of an expense must be spread out over many years into the future. A bookkeeper turns this knowledge into a spreadsheet that can help you save money.
Processing payroll is a crucial part of small business ownership. A bookkeeper processes your payroll cheques, payroll employee tax, annual T4s, WSIB payments (monthly, quarterly, and annually) and has the skills to assist you with other HR requirements.
Sending invoices on time to clients and managing your accounts receivable is helpful for a professional business persona. Sending invoices and receiving payments in a timely way is crucial for a successful business. Bookkeepers can also assist following late payments.
Financial statement preparation is the job of a bookkeeper. At times, you, the bank, or an investor will need to see profit and loss statements, balance sheets and cash flow statements. The bookkeeper is the logical processor of financial statements.
It is common to do cross-border business transactions, and the currency exchange can be a problematic aspect of which to keep track. Bookkeeping apps can analyze exchange rates to help you maintain
A bookkeeper puts your business data into an online bookkeeping software system. And their bookkeeping experience and skills mean they are much faster at this than you.
One-on-one bookkeeping software tutorials can increase the efficiency of your self-bookkeeping abilities. Suppose you have dove into Quickbooks or Sage software for yourself or are currently asking existing office personnel to assist you with ledger inputs and accounts payable and receivable. In that case, you will benefit from a personal tutorial to fill in any knowledge gaps that make more financial sense.
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