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

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CFO Services | CFO Services Vital

An interesting quote, says CFO services, in a small business pertaining a bookkeeper is, the vitality of your business is very vital.

Particularly if you are a new business owner, retaining a bookkeeper is an absolute necessity. Ultimately in business, often daily, you will need to make decisions, sometimes coming from many directions. You need to be able to understand these financial decisions, the numbers that go with it, and the repercussions if you make a poor decision. If in fact you make the wrong decision you may absolutely lose money, lose the trust of your employees, or, heaven forbid, illusion business altogether., You need to know your numbers, sometimes for example, CFO services warns that when you want to do your year-end financials, a poor bookkeeper will not give them to you in time or they will be incomplete. By the time in fact you get your year-end financials, if they are late, that might be information that is a year to 18 months old. Ergo, your numbers will be skewed and you may make a devastatingly poor purchase financial decision,

Guard against you retaining yourself or simply an employee to look at and work on your businesses financials is not in fact just a matter of inputting numbers and calculations into a computer calculator and getting the right answers. Forms coming from the Canada revenue agency can be very complex, and difficult to understand and fill out. The computer software companies will have you believe that doing your own books is very easy. This is simply not true and you can blame those companies for that false thought ideally you need a professional or else the records just aren’t worthy of helping you make prudent and proper business decisions for your business. If you make a poor businesses vision it could be the end of your business altogether based on poor numbers.

Yes, the accountant, says CFO services can, in fact help you to do your books. But again, that is not the greatest business decision as they are simply more expensive to retain its probably not appropriate as well to ask an employee. Both of these decisions can in fact be very inefficient and will illusion money. Accounts are budget driven. If there are disorganized incomplete documents within your bookkeeping accounts, you will be spending too much money paying that accountant simply to do data entry and organize the books instead of actually doing the accounting and bookkeeping on the file.

It’s important to have open and honest discussion with everyone every party your life. That includes your family, your friends, your coworkers, your business partner, and as well, your bookkeeper. Ask them how the books are looking and if they are complete and the numbers are right. Make sure you’re getting at least quarterly, if not weekly updates. If this update doesn’t in fact ever come, potentially sirens may go off in your head about the bookkeeper not doing his job.

One of the services that are absolutely vital when starting your own business, says CFO services is retaining a professional and experienced bookkeeper.

First off, when retaining a bookkeeper make sure you have open and honest communication with them expect to see quarterly updates, if not weekly updates. Periodically express the fact that you will be looking into the books and asking him how the books are in terms of completion, accuracy, etc. think about if you’re quarterly updates never come to, then it is a good sign that nothing has been getting done on your file or it’s getting done in a rush, or it is very disorganized. Look at the timelines of the reports and drill in to your adjusting journal entries.

Ultimately you have to be able to make proper business decisions in a quick and timely manner you need to know the numbers to your business and need to be accurate. If you decide that you want to hire somebody new or if you want to buy new materials for your business, you need to know if you have enough money in the bank to make it so. You need all of that information quickly so that you can make a quick decision if you make a poor decision, there is no reset button on your life or on the life of your business or the viability. It could very well mean the end of your business if you make a poor decision based on numbers that you thought were accurate but were in fact not.

CFO services says that probably the best time to hire a bookkeeper be instantly after you have given thought to starting your own business. They can advise you on the size of the business, rent or mortgage, how many employees your budget can manage, they may be able to talk to about incorporation, etc. At the very latest, says CFO services, to hire a bookkeeper would be when you have employees starting to work for your company and they are on the payroll. Payroll rules can be complex, and confusing current on the source deductions need to be kept into consideration and paying your employees the proper amount and on time is vital to work morale and devotion and dedication. Having the payroll records organized will help you to make their good decisions and have everybody in the business taking care of in terms of payroll and liability and the future of the company. When you get more employees to work for you chances are your business has grown to and so too has the bookkeeping, the files, and the financials. Do not leave all of those to a novice or somebody who is just good with a calculator. All of those files and documents need to be done by a professional and in a timely manner so that you don’t forget year-end reports or submit anything to the Canada revenue agency as they can be very bullish on deadlines and time.