We are in need of bookkeeping for creating the financial statement of our small business. Everything might go wrong without proper bookkeeping, and we might incur heavy losses in terms of money. It is the accountability of the small business bookkeeping companies in Canada to decide which transactions happen to be debits and credits, and it is possible for these decisions to alter as well. The bookkeeper will likewise record entries used for creating the financial statement, and they will also record receipts, bill the clients, verify invoices, make payments to the suppliers, and so forth.
You will come across quite a few small business bookkeeping companies in Canada at present, and it is essential to choose the right one for your requirements. Here, we have thrown light on some pointers that will help you to do so.
1. Hire the proper type of bookkeeper
It will not be a good idea to employ a full-time bookkeeper in case your company is still in the phase of development. In such cases, make sure to hire an in-house bookkeeper working part-time, or you might also outsource your accounting to a 3rd-party company.
In this case, the better option will be to employ the services of a local bookkeeping service. Their primary responsibilities will be to attend your office part-time, update your accounts, and take care of your paperwork. Nevertheless, this arrangement comes with certain downsides.
If they go on a vacation or become sick, you will find it tough to cover their work. Moreover, in case they disappear all of a sudden, it will be challenging for you to find a suitable replacement for them. It will also consume a lot of time.
You have one more option available to you which will be to employ a virtual or third part company. Despite being located far away, they have the ability to digitize your invoicing procedures and receipt collection which will make them more efficient.
One more benefit of working with a remote company is that they will usually function as a team so that at least one person will be available to manage your accounts.
2. Take into consideration the other services provided by them
While hiring small business bookkeeping companies in Canada, you should also consider what additional services are offered by them. You will need to make some extra payments for hiring somebody separately for taking care of your payroll, for instance.
Here, we like to mention that accountants and bookkeepers will provide different skills, and some bookkeeping companies likewise provide specialized services such as fractional controllership.
3. Make sure that they have industry experience
It is vital to make certain that the bookkeeping company hired by you is already experienced in dealing with businesses like yours. For instance, if they have expertise in working with customers in the restaurant industry, they will fail to maintain proper accounts for a nonprofit organization.
It is essential for a successful bookkeeper to have the subsequent expertise:
• Categorize your fiscal transactions on a daily basis
• Set up the chart of accounts (depending on the requirements of your small business)
• Create your financial reports
Never hesitate to inquire with the bookkeeper regarding how many years they are operating their business, and if you have any technical queries ask them as well.
4. Verify their credibility
It will be possible to verify the credibility of the small business bookkeeping companies in Canada by obtaining a referral from a trustworthy person. For this, you might ask for recommendations from your banker, your accountant, or the regional professional association.
If you want to fire a bookkeeper that you came across online, then try to do the following:
• Talk to the existing or previous clients
• Request for case studies and references depicting their work
• Make use of the info gathered by you for figuring out their competence and reliability
5. Make certain that they are acquainted with the accounting technology
It will be a sensible idea to commence with Microsoft Excel and spreadsheets while just starting your business, but you cannot rely on manually entered information in the long run.
Apart from comprehending the advantages of making use of accounting software, they also have the following expertise:
• Acquainted with the desktop application used by the majority of the companies
• Capable of recommending technology tools and apps for automating some specific data entry chores
• Able to migrate your books to cloud-based applications such as QuickBooks Online
Don’t hesitate to question them regarding whether they are familiar with some particular accounting applications and systems as well.
Bear in mind that more than 95% of the company owners prefer to emphasize business development more than chores such as bookkeeping at present. Let us hope that these pointers mentioned in this article will assist you in selecting one of the most competent small business bookkeeping companies in Canada.