Serving businesses and families since 1982

Desy’s Bookkeeping & Tax Services of Niagara

                 

Why Do I Need a Bookkeeper?

 

 

           Hiring the right bookkeeper can help you free up your time to concentrate on your core business.  You want accurate and unquestionable books and at the same time you want any savings that are available, considering past and up to date government changes. A bookkeeper who can be trusted to do this for you is a tremendous asset.

 

 What do I need my bookkeeper to do?

 

         A bookkeeper can care for a small segment of your business, or they can be a full service provider in your business’s success. A full service bookkeeper is someone who is responsible for seeing that all of your business transactions are accurately recorded and compiled preparatory to year end. Some bookkeepers like myself have gone steps further by also offering secretarial services and complete personal and business taxes.

 

         Often, it can be a difficult task to clearly define just what it is you need your bookkeeper to do. Bookkeeping needs vary widely from company to company and industry to industry. If you are not quite sure what you need from your bookkeeper, I invite you to discuss that with me and I would be pleased to assist you.  

 

Once I have hired a bookkeeper, how do I know if they are doing the job I need done?

 

         Foremost, decide on the level of service you require, and then agree upon the duties and time schedules for each. For instance, you may need your bank reconciliations soon after receiving the bank statements. Another example might be your need for monthly business statements to know where you stand. These should be timely, once all monthly information is in. There are many services and each has their own deadline which should be met. One method of helping you decide if your bookkeeper is managing to provide all your required services adequately is to ask them.

 

         Sounds simple, but both parties can have trouble asking and answering. A competent bookkeeper will answer confidently and cheerfully (that’s me). This should be your clue to their competence. If their reaction is opposite to that, you may have reason for concern.

 

I am thinking about doing my own books?

 

         There are some decent accounting software packages available for your computer. There are some inherent limitations in the off-the-shelf one-size-fits-all small business accounting software packages.

 

         First, an accounting software package cannot tell you how to categorize all of your business transactions. For example, trading in a depreciated piece of equipment for new equipment creates some very special book entries. Accounting software simply cannot handle entries like this without help from someone who knows the where’s and why’s. The result, your accountant or a bookkeeper will need to research and correct the problems in order to prepare your tax returns. For your business to flourish, it will require your full attention. As I stated previously, your time might be better spent running your core business and leave the time consuming task of bookkeeping to a professional.

 

         If your banker, accountant, attorney, or worse yet, a Revenue Canada auditor asks about your accounting records, will you have the correct answers? And, will you have those answers in a timely fashion? If you're paying your accountant $150 an hour to clean up bookkeeping, you're losing in a big way. Do you know how assets, liabilities, equity and other accounting items interact and affect your operating results? The bottom line - be sure that you invest your resources in the areas that will give you the best return on your investment.

 

         Would a good bookkeeper save you and your company money when working with your independent accountant? Absolutely! They will help you make sure that you don't wind up paying your accounting firm to untangle and reconstruct an accounting mess.  You see, most times accountant's are paid based on the amount of time they spend working on your account. With hourly rates ranging up to several hundred dollars an hour, any time saved on their part goes directly into your company's pocket.

 

         A good bookkeeper will meet with your accountant and discuss many issues about your business.  This applied information will bring the books in line with the accountant’s needs.  Some issues that may be broached are as follows: 

 

         -Exactly what documents are needed at year end.

         -In past years, what work the accountant has performed on each document          and   how you can give him or her better, more complete information.

         -Can any of the accounting records or worksheets provided to your          accountant be reformatted to match those used in your accountant's          office?

         -What has been the most time-consuming parts of your accountant's work          on your account.

         -Find out if you can supply your accountant with information in an          electronic spreadsheet (1-2-3, Excel, etc.) to save time.

 

The answers to these queries, would help your bookkeeper decide how to best do your books, to blend well with your accountants procedures, to save them time and save you money.

 

         The bottom line in business is generally profit. Spending your hard earned cash wisely on the right bookkeeper will help you keep as much of that money as possible.

 

         Trust, speed, price and accuracy are the tools I use to procure and maintain your loyal business. If these are attributes you like in your bookkeeper and tax preparer, then give me a call and let’s talk.