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E-Myth – “Why most small businesses don’t work & what to do about it”

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Business Coach | Hiring a Good Bookkeeper

A very common question, says business coach, for business owners is how do you know how to find and know if you have retained a good bookkeeper.

First off, it is absolutely advisable to find and retain bookkeeper for your small business in any size. It can be a necessity for all business owners and could be the difference between success and failure. Ultimately in business there are decisions every day. It is vital to the business that you make good sound decisions as there is in fact no going back from any decisions, poor or not. Business goes reminds you that if there are bad decisions made there is no going back. You may potentially lose your business altogether. The way we make those decisions and business is you need to know your numbers sometimes when you want to do your year and financials they may not be finished in time if the bookkeeper is not on top of the job. You need your financials in a timely fashion otherwise if you get the midyear you may potentially be a year to 18 months behind in knowing the numbers. Ergo, that might potentially lead you into making a poor business decision. You need prudent and sound information in a timely manner.

When asked for your bookkeeping and financial records, business coach suggests your bookkeeper should be able to give it to you right away. It’ll be important for you to know the numbers when you decide that you want to buy a new piece of equipment for your business, or if you want to make a staffing change.

A good time to hire a bookkeeper should be potentially when you start staffing your business the reason for this is twofold reason number one, the payroll rules can be somewhat complex. Keeping current on such things as source reductions and paying of thing on time is so important having the payroll records organized and concise is paramount to business. Number two when you have staffed your business, that’s when you should guard against doing business statement statements by yourself. Insist on hiring and retaining a professional.

Worst-case scenario, warns business coach, is you make a bad decision and retaining poor bookkeeper, ultimately you will lose money it’s very common for business owners to get behind on payroll or GST, and the CRA is very bullish on proper and timely payment of such things. If the CRA does not see clear concise accounts, they could freeze your accounts.

Accountants for example are budget driven. If there are disorganized files you will spend too much time doing data entry and reorganizing the books instead of actually working on the file and the numbers.

The benefits for a client and retaining a bookkeeper is that they get the quality of info again, in a timely manner and they can focus on their actual business if you can offload a couple of those tasks so that you can focus on what you do best that is paramount.

Business coach | not hiring a bad bookkeeper

Do you know the difference between a good and bad bookkeeper, asks business coach.

The search to find a good bookkeeper can be a long and arduous one you may potentially look at your referral network, ideally someone who has a network in a team behind them. Think about asking someone who has the experience and that has seen profits or at least no losses within their business. Keep in mind, too, that two CPAs are better than one also, check references for this bookkeeper. Ask other business associates and executives that you mingle with or no. For example, accountants are fantastic referral.

Bear in mind that accountants are budget driven if businesses are disorganized and all of their files are out of order you’ll spend too much time doing data entry and organizing the books instead of working on the file. Generally, if you want on accountants to do your books instead of a bookkeeper, accountants are for the most part more expensive and will be at a higher cost your business.

When is a good time to hire a bookkeeper, asks business coach. This is potentially when you start inviting employees into your business, and putting them on the payroll. Keeping current on the source reductions and paying them on time is vital. Having the payroll records organized to begin with will make it so much easier to pay your employees also, when you get employees, that’s when the bookkeeping can get very confusing and statements can be convoluted. You will need a seasoned bookkeeper to help you with those tasks. Don’t rely and just anybody who thinks they know about bookkeeping.

If your books are organized, clear, and concise, you can very easily look at the numbers that your business is bringing in and retaining. That will help you to stave off making a poor business decision terms of expenses, i.e.; buying something for the new business. If all of your books are disorganized and hard to read or understand, you may make a poor decision about buying a piece of a Quitman and it might potentially put you in financial ruin.

Plugging expenses and revenue into a computer program may in fact be easy. It is easy because that’s how the computer companies have made it. The automated software is a fantastic start, but ideally need a professional to organize all of your records or else you just aren’t ready to make significant financial decisions. If you use one of the automated pieces of software, you are not finished in your financial filing and understanding, and the chance of you making a poor business decision is still there.

Yes, the accountant, according to business coach, canon fact to the books. But ideally it comes down to the timeliness. If you have an employee in the business it’s probably not appropriate for them be doing your books. The accountant will potentially cost more than a certified bookkeeper.