Businesses or nonprofits will get piece of mind knowing that their bookkeeping records are up to date along with government filings submitted in a timely manner.
Bookkeepers can be hired on a part-time or full-time basis which will result in accurate books and records. It is vital:
To know the current state of the business for cash flow management. Bouncing cheques is far from ideal.
Is the business running at a profit? It is far too late to just do annual bookkeeping. When the year is over, there is no opportunity to act or make changes.
Timely financial reporting and tax filings are critical to be following government mandated payroll deductions, provincial and federal sales and WorkSafeBC reporting.
As needed, get your bookkeeper trained by an experienced accountant.
Implementing a Reliable Bookkeeping System
Set up your bookkeeping needs unique to your business using accounting software – QuickBooks or Sage work fine for a small business.
Set policy and procedures to develop simple systems for payroll, bill payment and most importantly invoicing customers and collections.
Timely payroll and payroll tax filings.
Establish systems for the basic record keeping–cheques, bank statements, invoices, etc.
Reconcile your bank accounts, do your monthly bookkeeping and records retention—paper or electronic.
Prepare reports for the owner. May need assistance from an accountant to prepare the profit & loss and balance sheet.
Benefits of Good Bookkeeping
Successful businesses have accurate and up-to-date bookkeeping records. Here are some benefits of good bookkeeping for your business:
You will know what your profit is and be able to act if it is a loss
You will know what your true bank balance is
You will have information to manage your business
You will know what you owe in bills (accounts payable), payroll taxes, etc
You will know what your receivables are
You will have prediction about your cash flow
You will know where the money went
You will have defensible records in the event of an audit
Quality financial records is at the heart of your small business’s survival and success.
Without it you’ll have no idea if you are profitable, have enough money to run the business, get paid as an owner or know where the money went.
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