Are you looking for ways to supercharge growth at your small business?
Well, here’s a little trick for you; one of the best ways to scale and grow any business is to hire a professional bookkeeper.
Seriously! Even if your business is small, it’s vital to accurately track and report the money flowing in and out of your accounts when it comes to sales, salaries, and expenses.
Not only is properly managing your books Ontario and federal law, but it’s the only way to fully comprehend your financial operations so you can make the best decisions that’ll help your small business grow! In fact, one of the most common reasons a business fails is due to a lack of proper bookkeeping. But guess what? That’s completely avoidable when you choose the right bookkeeper for your business.
The Difference Between a Bookkeeper and an Accountant
First things first; if you want to hire an accounting professional for your business, then you’ll need to know the difference between a bookkeeper and an accountant. This is so you will know who to hire based on your company’s needs.
The big difference between bookkeeping and accounting is that bookkeeping is responsible for recording financial transactions while accounting is about interpreting, classifying, analyzing, reporting, and summarizing the financial data.
The purpose of bookkeeping is to keep all financial transactions organized and systematic, while the point of accounting is to analyze the financial situation and interpret the data so that it can be made it into a detailed report suitable for management or external stakeholders.
Frequently, bookkeeping work is overseen by an accountant. For instance, a bookkeeper works all year round to make sure that all financial information is accurate and organized. Then, when tax time comes, an accountant uses the bookkeeper’s data to prepare and file taxes for your business.
Choosing the Right Bookkeeper for Your Business
To pick the perfect bookkeeper for your business, ask yourself the following questions:
- What is good bookkeeping?
- Does their number of years of experience matter the most?
- Is there something else you should be looking for?
By understanding how to recognize proper bookkeeping, you’ll be able to make better decisions about the kind of bookkeeper you want to work with and easily set specific expectations for them.
Here are three characteristics you should look for when choosing a bookkeeper for your business:
1. They Understand Current Technology Trends
Today’s digital age has transformed many industries, and bookkeeping is undoubtedly one of them. Cloud-based accounting software is increasingly more and more critical when it comes to accurately managing your books. No matter which software your business decides to use (I always recommend Xero), it’s imperative that your bookkeeper knows how to properly use all of its functions, such as bank reconciliations, accounts receivable, and accounts payable.
2. They Pay Attention to Detail
Since your bookkeeper works with data all day, it’s crucial for them to be thorough and pay attention to detail. For example, when you make a sale, your bookkeeper should be able to track who the customer is, the terms of the sale, and how to accurately record and document that sale.
3. They Understand Tax Basics
Even though your accountant will most likely file your taxes, it’s always beneficial for your bookkeeper to understand the basics of the tax system. The records your bookkeeper maintains will be used to file your taxes, so it’s important that these records are kept in a way that makes your tax filing quick and efficient.
After all, the point of hiring a good bookkeeper is to save your business time and money!
Here’s Why You Should Choose Canadian Cloud Accounting
Almost every business can benefit from both a bookkeeper and an accountant. So why hire two separate people when you can easily find everything you’re looking for in one firm?
Canadian Cloud Accounting is a virtual bookkeeping, accounting, and financial coaching firm that provides a wide range of services. Our team consists of professional bookkeepers and accountants. We’re also Xero and QBO Advisors and offer monthly support such as virtual bookkeeping services, payroll processing, government remittances (payroll, GST/HST, other), management reporting, custom schedules and tables, and so much more!
We’re truly your one-stop shop. And the best part? Since we’re a virtual firm, you can easily access your books from anywhere in the world so you’ll stay on top of your finances and keep your bookkeeping costs low, no matter where you are.
When you outsource your bookkeeping and accounting needs to a virtual firm like ours, you gain all the advantages of competent financial reporting without the headache of needing to onboard, train, and pay a full-time employee.
So, what are you waiting for? Connect with Canadian Cloud Accounting today to be sure that you have the right bookkeeper for your business.