Q: What bookkeeping software do you recommend?
A: I am certified with Quickbooks Online (QBO) and highly recommend it for any small business owner. However, I have also worked with Xero, Wave, and Simply Accounting.
Q: What financial statements do you provide me?
A: Every month, we will send you the company’s Balance Sheet, Income Statement, and the Statement of Cash Flows. Together, these statements provide a 3D look into the financial health of your company which we are happy to discuss with you. Each month, we offer a complimentary financial statement analysis in order to help you understand exactly how your company is performing and what you may expect in the future. If you would like to target a specific area of concern within the business, we would be happy to run a more customized and targeted report specific to the needs.
Q: I’ve been doing the books myself; why should I hire a bookkeeper now?
A: If you have some accounting background, have a knack for numbers, and are current on policies and procedures, then you may get by just fine without hiring a bookkeeper. But even if you are qualified in that sense, there are two additional things you may wish to consider:
- Your focus – As an entrepreneur, it goes with out saying that you created your business, not because you are a good bookkeeper on the side, but because you have a specialized product or service to offer and would like to generate income in doing so. And that is the key ingredient to any successful business – specialization. Hiring a professional bookkeeper just makes practical business sense, but most importantly, because you would be working with a trained professional who specializes in their trade. Your time is better spent focusing on the business you have created, not working in the business.
- The Risks – Not many SBOs have a financial background and likely don’t truly understand taxes payable vs taxes receivable and how an HST return is properly calculated (accrual vs cash-basis for example). The risks are high when you’re up against the CRA so it’s best not to chance it. Leave it to the bookkeepers who have accounting diplomas, bookkeeping certificates and are trained heavily in the software they’ll be using. After only one audit request from the CRA and you’ll be sure to agree – your bookkeeper and accountant are worth their weight in gold!
Q: Why should accounts be reconciled? Does it have to be done every month?
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Q: What is the balance sheet actually tell me?
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Q: How about the income statement?
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Q: I’ve never heard of a statement of cash flows. How does it help?
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