Author: develop

What is a section 85 rollover? Many individuals start their businesses as sole proprietors keeping their legal and tax compliance costs low until the business gets off the ground and starts producing income. To start the business, the individual would generally need to purchase assets or they might build a client list. When the business owner decides to incorporate their assets and client lists may be worth more than what was originally paid.

The CRA requires the asset to be sold at its current fair market value to transfer the assets into the company. This means the business owner would incur a capital gain on the transfer taxable to them personally.  Section 85 rollovers are helpful because this election allows the business owner to transfer the assets to the corporation tax-free. In addition, it will enable the business to purchase the assets at the original purchase price rather than the current fair market value.

Conditions required to perform a section 85 rollover

Basic conditions are required to be eligible for a section 85 rollover. These conditions are the following:

1. The taxpayer transferring the asset must be an individual, corporation, or trust.
2. The taxpayer receiving the transfer must be a taxable Canadian corporation.
3. The assets rolled over must be eligible property, for example, depreciable capital property (building), non-depreciable capital property (goodwill), Canadian or foreign resource properties (a right to drill for petroleum), and inventories.
4. The payment (consideration) from the company for receiving the transferred asset must include at least one share of capital stock. It must be equal to the asset’s fair market value.
5. An election using form T2057 must be filed by one taxpayer. The taxpayer who should file is based on who has the earliest deadline for the year the transfer occurs.  For example, a corporation six months after year-end or an individual on April 30^th.

What assets should you and shouldn’t you rollover

The assets that should be rollover are those that have increased in value. For example, if the land was purchased for $100,000 and the fair market value is currently $300,000. Capital property such as goodwill and customer lists are assets for which the taxpayer may not have paid anything but are now worth more due to hard work. In addition, the inventory that the value has increased since they were initially purchased. These assets would be suitable for a section 85 rollover to defer taxation when the assets are transferred to a corporation.

Assets that shouldn’t be rolled over have decreased in value or remain the same value. For example, accounts receivable would unlikely increase in value over time. In many situations, it would decrease in value if amounts became uncollectible, so a section rollover would not be suitable for this type of asset.

Example

Charlotte is a self-employed consultant that has been very successful. Her business has grown significantly, and she’s now earning more than she requires for living expenses. Her accountant advised her that incorporation could benefit her for tax deferral purposes. Charlotte’s assets used in the business are in the table below.

Asset	Fair Market Value	Initial Purchase Price	Depreciated value today
Cash	$20,000	$20,000	N/A
Building	$300,000	$100,000	$75,000
Land	$100,000	$50,000	$50,000
Computers	$1,000	$3,000	$2,000
Furniture	$500	$2,000	$800
Client list	$150,000	0	N/A
Accounts receivable	$15,000	$16,000	N/A

When Charlotte incorporates, she’ll require these assets to run the business. However, if she transfers these assets to her company, she will incur tax on any resulting capital gains. A section 85 rollover can be used to avoid triggering the tax.

As previously mentioned, a section 85 rollover would not benefit all assets, and only eligible property can be transferred. For example, accounts receivables and cash are not eligible property. In addition, the furniture and computers are eligible property that has not increased in value, so they would not be suitable for the election.

The following table outlines the assets that would form part of the election and how it would proceed:

Asset	Tax Value	Elected amount	Boot (non-share consideration)	Share	Total
Building	$75,000	$75,000	$75,000	$225,000	$300,000
Land	$50,000	$50,000	$50,000	$50,000	$100,000
Client list	$0	$1	$0	$150,000	$150,000
Total	$125,000	$125,001	$125,000	$425,000	$550,000

It is required that the lower of cost and depreciated amount be the elected amount for the capital property. A zero-dollar elected amount is not allowed for this election, so the client list elected amount has to be set as $1. 

As a result of the section 85 rollover, the following assets will be transferred into the company at their tax values/initial cost, and no gain will be triggered by Charlotte personally. In addition, she will receive non-share consideration (i.e., promissory note) totaling $125,000 and 425,000 shares of the company worth $1 each.

Conclusion

Section 85 rollovers can be very beneficial, especially in situations as discussed above for Charlotte when a self-employed individual is incorporated and wants to transfer the business’s assets into the corporation. In addition, this election allows for a tax deferral for the eligible capital property that has appreciated since it was initially purchased.

Discover how Section 85 rollover can benefit your business. Schedule your free strategy session now!.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Do you have a small business? Are you looking for a guide on how to do bookkeeping for your small business? Then, you’ve come to the right place! This blog post will discuss everything you need to know about bookkeeping, from setting up your books to tracking expenses and revenue. We’ll also provide tips on how to stay organized and keep your books in order. So whether you’re just starting or running your business for a while, this guide will help you get the most out of your bookkeeping process!

In this guide, we will cover the following:

1. Why is bookkeeping important?
2. Bookkeeping systems
3. Setting up a chart of accounts
4. Connecting your bank feeds
5. Categorizing your transactions
6. Reconciling your bank and credit cards
7. How to keep accurate records to be 100% CRA compliant
8. Payroll
9. Invoicing
10. Accounts receivable and accounts payable
11. Automation tips and tricks for the advanced bookkeeper
12. Common mistakes you must avoid

Let’s get started!

1. Why is bookkeeping important?

Bookkeeping for your small business is essential because it helps you track the financial health of your business. By recording your income and expenses, you can see how much money you’re making and spending, which can help you make better decisions about your business. Additionally, keeping accurate records can help you stay organized and avoid penalties from the Canada Revenue Agency (CRA). Knowing how your business is doing and keeping your books accurate and up-to-date allows you to unlock growth potential. Accounting is the language of business, and numbers don’t lie! Your bookkeeping records tell the story of how your business is doing. You aren’t running a business if you aren’t doing your bookkeeping.

2. Bookkeeping systems

The first step in bookkeeping is to set up your books. You’ll need to create a system for tracking income and expenses, and you’ll also need to choose a method for recording transactions. Many different software programs and accounting methods are available, so research is essential to find the right one.

QuickBooks Online is a popular accounting software program for small businesses. It’s easy to use and has all the features you need to manage your finances.

Alternatively, Xero is another excellent accounting software option. It’s cloud-based so that you can access it from anywhere, and it has a wide range of features to help you run your business.

If you hold off on choosing an accounting platform, an alternative is to use excel to track your income and expenses. This is a fundamental method, but it can work if you don’t have many transactions. It’s a good start for beginners who want to prepare their books.

Once you’ve chosen accounting software, it’s time to set up your chart of accounts so that you can start tracking your income and expenses.

3. Setting up the chart of accounts

The next step is to set up your chart of accounts. This is a list of all the categories you’ll use to track income and expenses.

Create accounts to track all revenue, including sales, interest, and other forms of income. You should also keep track of all expenses, including operational costs, marketing expenses, and taxes.

4. Connecting your bank feeds

The next step is to connect your bank and credit card accounts to your bookkeeping software. This will allow you to import transactions automatically and save time on data entry.

Banks in Canada have recently undergone a major security overhaul, so in some cases, your bank feed connections may break. When this happens, an alternative is to import CSV files of your bank transactions.

5. Categorizing your transactions

It’s essential to keep accurate records of your transactions to quickly see how much money is coming in and where it is going. This will help you make informed decisions about your business finances and control spending. When done correctly, you can create financial forecasts and budgets to help you plan for growth in your business.

To stay organized, create a system for categorizing transactions. This will make understanding your costs and how your business is performing easier. You can create classes in QuickBooks Online or use Xero’s tagging feature to categorize your transactions so that you can track different projects or revenue streams separately. This allows you to break down various departments in your business. Not all revenue streams in your business will carry the same profit margin, so it’s in your best interest to classify your income and expenses so that you can run profit reports to see how each one performs on its own.

6. Reconciling your bank and credit cards

Once you have a system for tracking income and expenses, you’ll need to reconcile your accounts. This means ensuring that the records in your accounting software match the documents in your bank statements.

Reconciling your accounts is critical for bookkeeping because it helps you catch errors and prevent fraud. It’s essential to do this regularly, at least once a month. If you don’t reconcile your books, they will be messy at year-end, and your accountant will have difficulty preparing a tax return for you. The last thing you want is to miss recording expenses which means you will pay more tax than you should. It pays off, in the end, to know that your books are perfectly reconciled.

7. How to keep accurate records to be 100% CRA compliant

We highly suggest automating your bookkeeping function by using a platform such as Dext. This will save you time, money, and a lot of headaches in the long run if you ever go through a CRA audit. Dext connects to your accounting platform and allows you to publish pictures of your expenses into the cloud from your smartphone. You only need to snap a photo of the expense using your phone’s camera, and then it uploads directly into your accounting platform. There is some initial setup to integrate this app properly with your accounting software, so this step gets tricky. For that, we recommend speaking with a professional accountant familiar with the app and how to optimize it for best use. Accountants also get discount rates on the app, so take advantage of that!

If you are not using a platform like Dext, you must keep all of your receipts in an organized fashion in folders. For example, you can categorize expenses by month or vendor.

8. Payroll

If you have employees, you’ll also need to track payroll. This includes keeping records of hours worked, wages paid, and taxes withheld. Payroll can be complex, so it’s crucial to hire a qualified payroll accountant or use payroll software to ensure that you comply with all the rules and regulations. Using a platform like Wagepoint allows you to automate direct deposit payments to staff and CRA and manage compliance requirements such as paystubs and records of employment. Don’t prepare payroll manually! That method is prone to error, and even the slightest variance in your payroll account can lead to reviews or audits with CRA.

Not only do you need to track payroll for your employees, but you also need to track it for yourself if you’re paying yourself a salary. An alternative to salary is dividends, so it’s good to speak with your accountant to find out which method is best for you.

9. Invoicing

You’ll need to generate invoices and track accounts receivable if you’re selling products or services. This means keeping track of who owes you money and when they need to pay it.

Invoicing can be done manually in a word document or with invoicing through your accounting platform. Using an accounting platform is great because you can email the invoices directly to your customers and accept payment by credit card. This makes it easier for both you and your customer!

When invoicing, include all the relevant information, such as your business name, address, contact information, and GST number, if applicable. You can also customize your invoices so that they look professional.

10. Accounts receivable and accounts payable

It would help if you tracked accounts receivable and accounts payable. Accounts receivable is the money that is owed to you by your customers. Accounts payable is the money that you owe to your suppliers.

You can track this information manually or through your accounting software. For example, if you’re using a payment software like Plooto, you can set up recurring payments so that you never miss a payment. This is important because late payments can damage your reputation with vendors or suppliers.

It’s also important to track accounts receivable so you can follow up with customers who haven’t paid their invoices. You don’t want to wait too long to follow up because they may have forgotten, and you don’t want to put yourself in a situation where you are short on cash.

When you receive payments for your invoices, use the receive payment function and mark off your invoices as paid. It must be kept up-to-date because cash flow is critical to your business’s success.

11. Automation tips and tricks for the technical bookkeeper

There is so much automation that you can implement into your accounting process. Here are a few of our favorites.

Accounts receivable: Invoice Sherpa is a great tool that allows you to automate your accounts receivable process. It integrates with QuickBooks and Xero so that you can send invoices directly to your customers and track payments.  This will save you time collecting customer payments and help with cash flow.

Accounts payable: Plooto is a great tool that allows you to automate your accounts payable process. It integrates with QuickBooks and Xero so that you can make payments to your suppliers directly from the software.

Records of expenses: Dext is a great tool that allows you to automate your records of expenses. It integrates with QuickBooks and Xero so that you can track your business expenses and generate reports.

Payroll: Wagepoint is a great tool that allows you to automate your payroll process. It integrates with QuickBooks and Xero so that you can manage your employee’s payroll and benefits.

Time tracking: TSheets is a great tool for automating your time tracking. It integrates with QuickBooks so that you can track your employee’s time and generate reports.

Zapier: Zapier is a great tool for automating your accounting process by connecting different software applications. Zappier is the glue that connects your apps so that all your apps work off the same data set and there is no manual entry. For example, every business has specific apps for sales, CRM, and data management. Using Zapier, you make sure that you never have to enter the same data again across all platforms manually.

12. Common mistakes you must avoid

The biggest mistake people make when doing bookkeeping for small business is not keeping up with it regularly. This leads to a lot of missed transactions and a lot of headaches down the road trying to figure out what happened. If you track your income and expenses weekly/daily, then you never fall behind, and you know exactly how your business is performing. On the other hand, if you fail to keep up, it means your taxes may be filed late or filed incorrectly. In addition, you can’t make informed decisions on your business if you don’t know where it’s at financially. That is like trying to sail a ship without knowing the direction you are going.

Another mistake that people make is not keeping good records of their expenses. This can lead to problems come tax time or if you ever get audited.  If you can’t show CRA receipts or invoices of your expenses, they can deny your expense claims and demand you to pay tax, interest, and penalties. 

Another mistake is not using automation tools to help with the bookkeeping process. There are so many great tools out there that can save you time and money.

Some of the biggest mistakes in bookkeeping are failing to reconcile accounts, not tracking payroll, and not categorizing transactions correctly.

Conclusion

Bookkeeping is an integral part of running a small business. By tracking your income and expenses, you can make informed decisions about your finances and ensure that your business complies with tax laws.

However, by following these tips, you can avoid these mistakes and set your business up for success!

Thanks for reading, and good luck with bookkeeping for your small business!

If you have any questions, please feel free to contact us.

We’re always happy to help!

Contact Argento CPA today if you have any questions or looking for expert advice.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

Understanding tax instalments requirements imposed by CRA is fundamental. This article will tell a story about Pam who was employed and earned a bonus from her employer that she used to invest in the stock market. She sold some stocks and earned a $30,000 capital gain during the year and had to pay $4,500 of tax on the gain when she filed her tax return. The next year she sold more of the stock and earned a $40,000 capital gain that she had to pay $6,000 of tax on the gain when she filed her return. She was then shocked when her accountant told her she not only owed $6,000 of taxes for the year, but that the CRA also required her to make instalment payments for the next year.

Why do I have to pay tax instalments?

The reason Pam is required to pay tax instalments is that taxpayers whose net tax owing is greater than $3,000 twice within a 3-year period are required to make instalments for the coming tax year. These instalments are prepayments of tax, similar to payroll taxes being remitted throughout the year on wages earned from employment, that would normally be paid when the annual tax return is filed.

How are tax instalments calculated?

There are three options of calculating tax instalments, no-calculation options, prior-year option and current-year option.

The no-calculation option is best used when your income, deductions and credits are similar from year to year. The CRA will determine the instalment amount based on details from your last tax return and they will send out a reminder to provide those details.

The prior-year option is best used when you expect your current years income, deductions, and credits to be similar to the prior year, but different from the year before that. You determine your instalment amounts based on the total payable from the prior year. If you make payments before the instalment deadlines you will not be charged instalment interest or a penalty, unless the instalment payments actually made are too low.

The current-year option is best used when your income, deductions and credits will be significantly different than the prior two years. You determine your estimated income for the current year and pay instalments based your estimated taxes owing for the year. If you make payments before the instalment deadlines, you will not be charged instalment interest or penalty, unless the instalment payments made are too low.

Payment due date

Tax instalments are required on a quarterly basis on March 15, June 15, September 15 and December 15. If this is the first time you’ve been required to make tax instalment payments, you’ll be required to make your first payment June 15 and your last payment March 15 of the following year.

If your instalment payments are late or too low, you may have to pay instalment interest and penalties when you file your tax return for the year.

How to make a payment

Instalment payments can be made using the same options as paying your annual taxes; online, in person or by mail.

Online

You can make an instalment online from your financial institution. To make a payment you log into your bank account, setup CRA as a payee using the “CRA(Revenue) Tax Instalment” option and enter your social insurance number as the account number. The processing time can be up to five business days so payments should be initiated well before the deadline.

In person

You can make an installment payment in person at your bank; however, you will require a printed personalized remittance voucher. The voucher is mailed to you by CRA with the instalment schedule.

By Mail

You can make an instalment payment by mailing your personalized remittance voucher with a Canadian cheque or money order

What happens if I don’t pay my tax instalments

If you don’t pay your tax instalments, you could be subject to interest and penalties. To illustrate this, we’ll provide different scenarios using Pam’s situation discussed at the beginning of this article.

Scenario 1

Pam was informed by her accountant and CRA that she is required to pay $1,500 on June 15, September 15, December 15 and March 15 of the following year, for a total of $6,000. Pam decides not to make these payments and during the year she purchased a rental property and earned rental income. This rental income resulted in additional tax owing of $2,300 when she filed her annual tax return.

To avoid instalment interest, she should have paid $575 ($2,300/4) per quarter. The tax instalment interest is then calculated from the day each payment of $575 was due, until the balance due date (or April 30^th) using the prescribed interest rate at the time.

She would also be subject to a penalty. Assuming her total instalment interest for unpaid instalments was $300, the penalty would be 25% x $300 / 2 = $37.50. Therefore, her total interest and penalty for not making any instalment payments would be $337.50.

Scenario 2

Pam was informed by her accountant and CRA that she is required to pay $1,500 on June 15, September 15, December 15 and March 15 of the following year. Pam forgets to make the June 15^th payment, but when she pays the September 15^th payment, she pays $3,000. She then makes the remaining payments on time. When she files her annual tax return the $2,300 net taxes from her rental income is offset by the $6,000 instalment payments she made, and she obtains a refund of $3,700. Even though she missed the first tax instalment payment, the catch-up payment made the following quarter eliminated or significantly reduced any instalment interest CRA would have charged.

Scenario 3

Pam was informed by her accountant and CRA that she is required to pay $5,500 on June 15, September 15, December 15 and March 15 of the following year for a total of $22,000. Pam decides not to make these payments and during the year she purchases a rental property and earns rental income. This rental income results in additional tax owing of $33,000 when she files her annual tax return.

To avoid instalment interest, she should have paid $22,000 ($5,500/4) per quarter. It does not matter that her actual taxes owing was more. She will only be subject to tax on the instalments CRA expected her to pay. The tax instalment interest is then calculated from the day each payment of $5,500 was due, until the balance due date (or April 30^th) using the prescribed interest rate at the time.

She would also be subject to a penalty. Assuming her total instalment interest for unpaid instalments was $3,000, the penalty would be the higher of 25% x $3,000 / 2 = $375 or $3,000 – $1,000 / 2 = $2,000. Therefore, her total interest and penalty for not making any instalment payments would be $5,000.

Contact Argento CPA today if you have any questions or looking for more expert advice when it comes to understanding tax instalments.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

Back

Small business owners are responsible for many essential tasks, from marketing and sales to bookkeeping and accounting. But one of the most important – and often overlooked – aspects of owning a small business is how to keep receipts and good records. Records are essential for ensuring your business stays organized and efficient, and they can also help you avoid costly mistakes.

But what are the correct records to keep? And how do you choose the right recordkeeping system for your business? This guide will walk you through everything you need about recordkeeping for your small business. We’ll cover everything from essential records to store and what to do if the CRA audits you. So whether you’re just starting or running your business for years, this guide will help keep your records in order.

1. What are the different recordkeeping systems available to small business owners?

2. What are the benefits of keeping good records for your business?

3. What are some essential records that every small business should keep on file?

4. How can you ensure your business’s recordkeeping system is efficient and effective?

5. How often should you review your records, and what should you do if you find any discrepancies?

6. What happens if the CRA audits you?

7. How can a bookkeeper help you keep track of your small business records?

What are the different types of recordkeeping systems available to small business owners?

The most common recordkeeping system is a cloud-based system like QuickBooks Online. This system is easy to use and helps you stay organized by storing your records in the cloud. Other recordkeeping systems include manual systems (which involve keeping paper files) and software-based systems (which require purchasing and installing software on your computer).

The type of system best for your business depends on your needs and preferences. For example, most companies prefer cloud-based systems because they’re easy to use and can be accessed from anywhere, while others prefer software-based systems because they have more features and can be customized to fit their needs.

No matter which type of system you choose, it’s essential to ensure it’s efficient and effective for your business. The design should be easy to use and understand, and it should also be able to handle the volume of records you’re likely to produce.

What are the benefits of keeping good records for your business?

There are several benefits to keeping good records for your business. Some of the most important benefits include:

1. Organized Records: A well-organized recordkeeping system helps you stay organized and efficient, saving you time and money in the long run.

2. Easy Access: Good records are easy to access when you need them, which makes it easier to track finances, make decisions, and respond to audits or other inquiries from the CRA.

3. Timely Updates: By regularly keeping track of your business expenses and income, you can ensure that your financial reports are up-to-date and accurate. This can help you make better decisions about where to allocate your resources.

4. Tax Preparation: Good records help make tax preparation easier and less time-consuming, saving you money in taxes or penalties.

5. Track Business Progress: By tracking the progress of your business over time, you can identify trends and areas where improvements need to be made. This information can help make future business decisions.

Some essential records that every small business should keep on file include:

1. Business License and incorporation documents: You must have a copy of your business license and incorporation documents on file. This includes a copy of your shareholder registry.

2. Tax Returns: You should keep copies of all your tax returns and related documents, including T4s and T5s.

3. Employee Records: You should keep records of all your employees, including their contact information, wage information, and any benefits they receive.

4. Accounts Payable: You should keep a record of all your accounts payable, including the vendor name, invoice number, and date paid.

5. Accounts Receivable: You should keep a record of all your accounts receivable, including the customer name, invoice number, and date billed.

6. Receipts and invoices: You should keep a record of all your receipts and invoices, including the date, vendor name, and amount paid. This information can help you track your business expenses and income over time.

How can you ensure your business’s recordkeeping system is efficient and effective?

You can do a few things to ensure your recordkeeping system is efficient and effective for your business. First, make sure the system is easy to use and understand. If you struggle to use the system or don’t understand how it works, you’re likely to skip using it altogether, which can hurt your business in the long run because your books will become a mess!

Second, ensure the system can handle the volume of records you’re likely to produce. If you’re manually entering your transactions and spending a significant amount of time on that, the system isn’t working efficiently and could use an upgrade to a cloud-based version.

Finally, be sure to update your records daily/weekly or at least monthly. This will help ensure that your financial reports are accurate and up-to-date.

How often should you review your records, and what should you do if you find any discrepancies?

Ideally, you should review your records on a daily or weekly basis. This will help ensure that your financial reports are accurate and up-to-date. If you find any discrepancies, take the appropriate steps to correct them. This could include contacting the vendor, changing the invoice date, or adjusting the amount paid. The savvy business entrepreneur has a pulse on their numbers and knows exactly how profitable they are. You should too!

What happens if the CRA audits you?

If the CRA audits you, they will review your records to ensure they are accurate and up-to-date. If they find gaps in missing information, you may be subject to penalties or fines since you won’t be allowed to make tax deductions for expenses without a receipt. Therefore, it’s essential to ensure your records are accurate and up-to-date to avoid any penalties from the CRA.

How can a bookkeeper help you keep track of your small business records?

If you’re not experienced in bookkeeping and accounting, keeping track of your small business records can be challenging. A bookkeeper can help you stay organized and ensure that your documents are accurate and up-to-date. They can also help you prepare for tax season and ensure you’re taking full advantage of all the tax deductions available.

If you’re interested in hiring a bookkeeper to help you with your small business on how to keep receipts and records, shop around and compare prices. Ask for referrals from friends or family members who own businesses, or contact us!

Back

Small business owners have a lot on their plate. Not only do they need to worry about the day-to-day operations of their business, but they also need to make sure that their finances are in order. This is where having a good bookkeeper comes in handy. A good bookkeeper can help you keep your books organized and up-to-date and can help you make more informed financial decisions for your business. So how do you go about finding a bookkeeper that’s right for your small business? Here are some tips!

What to look for in a bookkeeper

When looking for a bookkeeper, you must consider what you need them to do for you. Some of the things you should look for include:

1. Experience – It is crucial to find a bookkeeper who has experience handling the finances of a business similar to yours. This will ensure they have the knowledge and skills necessary to help you grow your business.

2. Knowledge – A good bookkeeper should have a strong understanding of accounting principles and keep your books up-to-date.

3. Efficiency – A good bookkeeper can handle your finances in a timely and efficient manner, so you can focus on running your business.

4. Trustworthiness – Finding a bookkeeper you can trust with your confidential business information is vital.

5. Availability – Make sure the bookkeeper you choose is available when you need them and has the time to dedicate to your business.

Finding the right bookkeeper can be daunting, but it is worth taking the time to find someone who can help you grow your business. By considering the above factors, you should be able to find someone who is a perfect fit for your needs!

Benefits of having a good bookkeeper

A good bookkeeper can help you keep your finances in order and make more informed financial decisions for your business. Here are some of the benefits of having a good bookkeeper:

1. Peace of mind – Having a good bookkeeper can rest assured knowing that your finances are in good hands. This can be a great relief, especially if you are unfamiliar with accounting principles.

2. Time savings – A good bookkeeper can handle your finances quickly and efficiently, so you can focus on running your business. This can save you a lot of time and stress!

3. Accuracy – A good bookkeeper will keep your books up-to-date and accurate, which will help you make more informed decisions about your business.

4. Growth potential – A good bookkeeper can help you grow your business by providing sound financial advice and keeping your books organized and up-to-date.

5. Cost savings – Having a good bookkeeper can save you money in the long run by helping you avoid costly mistakes made due to a lack of knowledge or experience.

Overall, having a good bookkeeper can benefit your small business. They can help you maintain your finances, make more informed financial decisions, and help you grow your business. So, if you want someone to manage your small business finances, consider hiring a good bookkeeper!

Tips for working with a bookkeeper

Once you have found a good bookkeeper, there are some things you can do to make sure the relationship works well for both of you:

1. Establish clear expectations – It is vital to establish clear expectations with your bookkeeper regarding what they will do for you and when they will do it. This will help ensure that both of you are on the same page and that there are no misunderstandings.

2. Communicate frequently – It is also essential to communicate frequently with your bookkeeper, especially if there are any changes in your business or if you have any questions or concerns. This will help ensure that they are always up-to-date on what is going on with your business and that any issues are resolved quickly.

3. Give them access to relevant information – For your bookkeeper to do their job effectively, they need access to accurate and timely information about your business finances. So be sure to give them access to all the relevant information they need to do their job correctly.

4. Review their work regularly – Finally, review your bookkeeper’s work regularly to ensure accuracy and completeness. This will help catch any mistakes or discrepancies and ensure that your books are in good order.

By following these tips, you can ensure that your relationship with your bookkeeper is successful!

Questions to ask potential bookkeepers

If you are looking for a bookkeeper to manage your small business finances, be sure to ask the following questions:

1. How long have you been bookkeeping? This will give you an idea of their level of experience.

2. What accounting software do you use? This will help ensure they are familiar with the software used in your industry.

3. Do you have experience working with a small business like mine? This will help ensure they understand the specific needs of a small business.

4. What are your rates? It is essential to know what to expect financially up front.

5. Are you available for ongoing support? Again, finding someone who can be there when you need them most is essential.

6. Can you provide references? References can help verify the quality of their work

Conclusion

Finding a bookkeeper and hiring the right one is a crucial decision for any small business. They can help you maintain your finances, make more informed financial decisions, and help you grow your business. So, if you are looking for someone to manage your small business finances, consider hiring a good bookkeeper!

Back