Businesses of every size, from every industry, and in every part of the world will always have one thing in common: they have to keep track of their incoming and outgoing money. This is a necessary aspect of operating a business because it’s how a company knows if it’s generating profits or losing money. To ensure accurate records, business owners often hire professional bookkeepers to record and monitor all financial transactions.
What is a bookkeeper?
A bookkeeper is a professional who has been trained and certified to manage financial records for a business. A bookkeeper’s job is to ensure a company’s finances are always up-to-date, accurate, organized and compliant with various regulatory bodies.
Bookkeepers are responsible for many different tasks, including:
- Recording all incoming and outgoing money from the business, including payments made by customers and bills paid by the company.
- Evaluating financial data to identify trends that can help identify spending patterns and make better business decisions.
- Maintaining detailed records of all accounts receivable and payable, as well as tracking all bank transactions.
- Preparing reports on profit and loss for both individual clients as well stakeholders.
- Ensuring that all financial transactions comply with local and national tax regulations.
History of Bookkeeping
Bookkeeping has been an integral part of business for centuries and its roots can be traced back to ancient Egyptian times; it was used for tracking goods in royal storehouses over 5000 years ago.
Since then, bookkeeping has played a key role in the development and growth of many successful companies. Some notable figures from history who have used bookkeeping to manage their businesses include:
- Henry Ford, founder of the Ford Motor Company, used careful record-keeping throughout his career to help him make important business decisions.
- Warren Buffett, one of the wealthiest individuals in the world, famously uses a “mental checklist” to monitor his company’s financial performance each day.
- Ray Kroc, the founder of McDonald’s, used bookkeeping to help him grow his business into the massive global corporation it is today.
- Steve Jobs, co-founder of Apple, was a known stickler for accuracy and organization in all areas of his life – including finance.
Bookkeepers play an essential role in helping businesses of all sizes to succeed and grow.
Bookkeeping Duties and Responsibilities
A good bookkeeper can easily manage your payroll. They will ensure your employees are paid on time and in the correct amount. They will also keep track of taxes and handle payroll remittance payments to the CRA on your behalf.
To avoid paying severe penalties, businesses must file their federal income tax on-time and with accurate information. Bookkeepers can help you stay on top of this requirement and find favourable tax breaks for your business.
The financial reports that bookkeepers prepare for business owners can give them a clear picture of their income and expenditure over time. Typically, there are four key types of financial statements a qualified bookkeeper will keep up-to-date and accurate. These four key statements include:
- Income Statement (also called Profit & Loss),
- Balance Sheet
- Cash Flow statement
- Statement Of changes In Equity
Who can benefit from a bookkeeper?
Small business owners, entrepreneurs, and busy professionals who are looking to grow their businesses can all benefit professional bookkeeping services.
Whether you’re just starting out or have been operating for many years, a bookkeeper can help you manage your finances more effectively and ensure that you stay compliant with local tax laws and regulations.
Additionally, working with a bookkeeper can help you focus on other areas of your business, such as growing sales or improving customer service.
7 Benefits of Hiring a Bookkeeper for Your Business
If you haven’t worked with a bookkeeper before, you may not understand how beneficial outsourcing this service can be for your business. Consider the following seven ways a bookkeeper can add value to your business:
1. Better organization and financial record-keeping.
2. Increased accuracy and efficiency in tracking financial transactions.
3. Peace of mind, knowing that your finances are always up-to-date and accurate.
4. Guidance on how to make strategic business decisions based on financial data.
5. Reduced administrative burden and stress associated with financial management.
6. Increased productivity and focus on other business tasks.
7. Compliance with tax regulations reduces the risk of penalties or fines.
How much does it cost to hire a bookkeeper in Canada?
The cost of hiring a bookkeeper in Canada can vary depending on the size and scope of your business and other factors such as region. However, on average, you can expect to pay between $50-$100 per hour for professional bookkeeping services.
To get an accurate quote for your specific needs, be sure to consult with a trusted bookkeeper in your area. If you’re in the Greater Victoria Area, call Chris or Carmen at Source Online Bookkeeping.
Curious About Expert Bookkeeping Services in the Greater Victoria Area? Consult with Source Online Bookkeeping.
Hiring a bookkeeper is an essential step in helping your business grow and succeed. In addition to the benefits listed above, working with a professional bookkeeper can help you focus on other areas of your business and ensure compliance with local tax laws. To find out more about how a bookkeeper can benefit your business, contact Source Online Bookkeeping today for a free consultation.