As a business owner you put a lot of trust in your bookkeeper. This person manages your financial records, has access to your bank account information and impacts your financial reporting and tax compliance.
A certified bookkeeper in Canada will provide you with the expertise, accuracy and confidence you need to ensure that your financial records are in shape and compliant. Let’s explore the consequences of a bad bookkeeper and what to look for when choosing a certified bookkeeper.
Impact of a Bad Bookkeeper on Your Business
First, let’s understand the consequences of choosing a bad bookkeeper. One that doesn’t do the work properly or is even just ‘back-footed’ can negatively impact your business. Here’s a few ways that can happen:
Inaccurate Financial Information
If your basic record keeping and other inputs are not done accurately, your final output, your financial reports, will be erroneous. This will make it difficult to make informed decisions.
Compliance & Legal Issues
Failing to maintain accurate records leads to problems calculating GST/HST and meeting your tax obligations. This can lead to unwanted attention from the Canada Revenue Agency (CRA).
Cash Flow Problems
With a bad bookkeeper at the helm you could run into serious cash flow problems. You may rely on this person to track income and expenses, issue invoices, handle bill pay, follow up on receivables and communicate with you. If this isn’t being done properly you may find it difficult to meet short term obligations.
Missed Opportunities
Without proper bookkeeping services for your business, you may miss out on valuable tax deductions, financial insights, or opportunities for growth and optimization.
How to Choose a Certified Bookkeeper, Canada
Here’s a few ideas on how to choose the right bookkeeping services for your business.
Seek Certified Bookkeepers
Look for bookkeepers who hold professional certifications such as those offered by recognized organizations like the Certified Professional Bookkeepers of Canada (CPB). These certifications ensure a level of expertise and adherence to industry standards.
Technological Proficiency
Inquire about the bookkeeper’s proficiency with cloud accounting software and other relevant tools. A bookkeeper who is up-to-date with technology can streamline your processes and make sure that your records are accurate and always up to date. If your bookkeeper uses software like QuickBooks, they should have at least one of the different types of certifications that QuickBooks offers.
Check Experience & References
Assess their experience in working with small businesses similar to yours. Ask for references and testimonials of past or current clients to gauge their satisfaction and reliability.
Communication & Transparency
Choose a certified bookkeeper who values open communication and provides regular updates on your financial records. Clear communication channels ensure that you stay informed and can address any concerns promptly. Choose someone who has good work and moral ethics.
Consider Industry Specialization
Depending on your industry, you may benefit from a certified bookkeeper who has unique experience in your specific sector. They will be familiar with industry-specific regulations and practices, enabling more tailored and accurate bookkeeping services.
Types Of Bookkeeping Services To Look For
Good bookkeeping services in Canada will usually include things like:
- Invoicing
- Expense recording
- Collections
- Bill payments
- Sales tax filing
- Monthly financial statements
- Preparation of year end books
- CRA support
- Enhanced credit control
- Expense monitoring
- An online accounting software
- Cloud-based apps to streamline your bookkeeping
Selecting a certified bookkeeper Canada is an important part of your financial success. By avoiding bad bookkeeping practices and choosing a qualified professional, you can safeguard your business’s financial health, make informed decisions, and ensure compliance with regulations. Remember, bookkeeping matters—it is the backbone of your financial stability and growth.
If you’re looking for a bookkeeper, contact Ruby Business Solutions today to learn more about how we can help you.
FAQs
Why does bookkeeping matter for a business?
Choosing a certified bookkeeper Canada is vital for several reasons:
- Financial decision-making
- Compliance and tax obligations
- Financial stability and growth
What is one of the most common bookkeeping mistakes that business owners make?
Mixing business and personal finances is one of the most common mistakes that business owners make. Failing to keep personal and business transactions separate can lead to confusion, inaccurate records, and potential legal and tax implications.
It’s essential to maintain separate bank accounts, credit cards, and financial records for your personal and business finances to ensure accurate bookkeeping and simplify tax reporting.
