Business owners need accurate, up-to-date financial information in order to make good business decisions, maintain CRA compliance, support readiness in case of an audit and provide preparedness for the possible future sale of the company. Keeping track of business transactions and ensuring accurate books is complex and time-consuming. A bookkeeper can help.
What are the duties and responsibilities of a bookkeeper?
A bookkeeper is a person whose job is to keep records of the financial affairs of a business. He/she undertakes a variety of tasks including:
- Recording the financial transactions of your business (incoming and outgoing) and posting them to various accounts
- Processing payments
- Conducting daily banking activities
- Developing a system for organizing sales, purchases, payments and receipts
- Identifying trends and how they apply to your business
- Producing various financial reports
- Reconciling reports to third-party records such as bank statements
- Providing a complete set of year-to-date accounting records
- Supplying information regarding the performance of your business
Advantages of hiring a bookkeeper:
- Saves you time: Bookkeeping tasks are time-consuming and tedious. Hiring a bookkeeper relieves you of these duties, allowing you to dedicate your time to growing your business.
- Saves you money: The cost of outsourcing your bookkeeping is usually less than employing a full-time bookkeeper. A bookkeeper’s detailed records will save you money by reducing the time your CPA needs to analyze your accounts.
- Prevents errors: Mistakes are costly. Having a bookkeeper means your books are up-to-date, organized and accurate.
- Eases budget creation: A bookkeeper will examine your revenue and expenses, providing you with budget tips that help reduce spending, assist in efficient business operations and contribute to profitability.
- Enables better business decisions: By identifying spending patterns and sales trends, providing forecasts of seasonal ups and downs, recognizing money-making opportunities, avoiding cash-flow problems and finding ways to increase income and/or decrease spending, a bookkeeper provides you with the information you need to make good decisions for your business.
- Contributes to effortless tax season: A bookkeeper provides up-to-date accounting records and a year-end financial statement making it easier to prepare accurate and complete tax returns and avoid tax penalties.
- Allows maximum tax deductions: Proper bookkeeping allows you to take advantage of all possible input tax credits and deductions.
- Ensures compliance with the law: A good bookkeeper complies with the latest legal regulations and remains up to date with recent legal changes.
- Provides audit preparedness: Accurate and up-to-date records ensure a smooth audit process.
- Promotes ease of securing loans and/or investments: It’s easier to secure capital when you’re able to clearly outline your business’s performance and financial position.
- Reduces risk: A good bookkeeper can detect fraud and/or embezzlement, helping you spot suspicious business transactions.
Businesses benefit from the assistance of a qualified, professional bookkeeper. These professionals help companies through all stages of start-up and growth.
Need professional bookkeeping and accounting services? Looking for business advice? Contact Cook and Company Chartered Professional Accountants. We are based out of Calgary, Alberta, serving clients across Canada and the United States. We provide high-quality tax, assurance and succession planning services for a wide variety of privately-owned and managed companies. Contact us for a complimentary consultation.