How To Choose the Right Bookkeeper for Your Business
You've started a business! That's wonderful.... But how do you manage your financial data? Are you tracking all the right information? Do you understand the basics of accounting and government compliance? Probably not... You are an artist (or contractor, or retail store owner, etc...) not a bookkeeper.
There are two main types of bookkeepers working in Canada today:
Data Entry Bookkeeper: This level of bookkeeper will keep your books. They will put in what you tell them to. They will make sure that your daily paperwork is out of your way. The benefits of this style of bookkeeper is that they are generally less expensive than other bookkeepers. The downfall is that your books may not be accurate, which could result in very expensive consequences if errors are made and not caught. This type of bookkeeper relies on the business owner to ensure the books are correct, and usually do not have any formal education in the accounting or bookkeeping field.
Professional Bookkeeper: This level of bookkeeper has years of experience, a formal education in accounting or bookkeeping. They are hyper-focused on detail and accuracy. They want to understand your business and industry so they can provide you with more accurate information. The benefits of this style of bookkeeper are that they provide you with a higher confidence level that your books are accurate, mistakes are minimal, they take responsibility for ensuring accuracy instead of relying on the business owner, they may even belong to a processional association. Their level of experience may vary, and they are generally more expensive than a Data Entry Bookkeeper.
Although it is possible to do the job of bookkeeping yourself, most small business owners aren't trained in bookkeeping. These three reasons are why you need a GOOD bookkeeper working with you:
They save you time. Unless you already have a background in bookkeeping or accounting, it is unwise to take on this responsibility yourself. They take all the numbers generated by your business and make sense of them. A GOOD bookkeeper knows how transactions should be handled to provide useful business information. It is a skilled job and your bookkeeper will be able to manage it much more efficiently.
They understand your business: Dealing with the day-to-day accounts, bookkeepers develop a deep understanding of your business finances. A GOOD bookkeeper watches over your finances and helps you stay out of trouble.
They help you manage your cash flow: While working with an accountant can be necessary at times, your bookkeeper sees your accounts on a regular basis. A GOOD bookkeeper will keep a close eye on how your business is performing, help you keep your cash flow under control, and grow your business.
At AG Small Business Services, we work with you to develop a solid understanding of both you and your business. Our goal is to help you run your business so your business is not running you!
