Your small business is thriving; you grow faster, your profits are on the upswing, and you start to get a handle on inventory, pay, and receivables. Your customers are happy and the opportunity for diversity looks great.
In the back office, you have decided that you have enough volume to hire a part-time housekeeper to ensure that all your transactions are properly recorded and that all your financial reports are prepared accurately and on time.
So your maintenance is all taken care of? Be careful. An in-house bookkeeper is an important step in ensuring that your business is healthy from a record-keeping perspective. But that is not the end of the matter. For example, does your librarian know everything he needs to be able to make sure everything is done well?
If you do not answer many questions from your bookmaker, you should be concerned. If you answer a lot of questions from your bookmaker, you may not be using your time as profitably as you can.
Now, what about now? If hiring a bookkeeper is not enough to “check the box” on financial recordings and reporting, what is that?
That unwanted “offline” transaction
Trading in a business, by its very nature, can be surprisingly surprising. Often, book submissions will be “categorized” because the accountant cannot determine, from receipt or other records, how to distinguish such transactions. A good bookkeeper will always keep track of what is not in the category and will not allow it to be collected, but instead, ask for details so that it can be booked promptly. If this is not done and random transactions accumulate over time, this will lead to inaccurate financial statements and create problems in cash flow estimates, as it is difficult to predict financial needs if it is not clear what the company’s resources are used for.
But even the best-selling bookkeepers may allow non-class transactions to accumulate because they have blocked roadblocks to following the information they need or are unable to get their questions answered. It would be annoying for any business owner to make a phone call – while in a pick-up call – from a bookmaker asking for $ 400 if there is very little hope of quickly remembering what kind of expenses because they were made 3 months ago.
That is a complex transaction
Some activities are easy to understand and apply. For others, it may be. There are transactions with moving parts and can involve the various departments of your company that are accompanied by temporary problems that are simply confusing to someone with knowledge of bookkeeping. Indeed, any small business owner will not know how to guide the bookkeeper in recording and following these complex agreements. Also, what if you do not have a “calling” plan with your CPA Company or are just interested in asking questions to the accountant? Where does that leave your book function? Incorrect and incomplete.
Time to get some control
A N G CPA Chartered professionals Accountant of Ontario has an accounting staff with accounting qualifications who do not know the answers to any questions the bookkeeper will ask. With our monitoring services, we can help your bookkeeper understand how to record complex transactions. We can assist in the development of protocols for the appropriate recording of transactions that will eliminate the accumulation of unwanted unsolicited transactions. This will keep your calls to a minimum. Add peace of mind by ensuring that timely and accurate money can be produced.
You will have questions about making decisions as your business grows
Part of having a financial return office to get answers to questions you have as an owner, be it in the balance sheet, profit and loss statement, or future cash flows. For example questions such as’ Can I buy something new now that will boost the product, or will that put a lot of pressure on our money flow? If so, when will cash flow support this level of spending? ”
Your bookkeeper may not be able to answer that question. And to be honest, there is no reason why he should know. It’s not what you hired for a bookmaker and in general, these high-profile financial situations are outside the book’s skills set. However, if you have a company that provides firm law firm accounting services for your law business, the answers to these questions are within their professional capacity.
Also, hiring a bookkeeper is an important step towards the health of your back office. But consider expanding the scope when that back-office becomes a resource that helps you grow the business to make a big profit and give you peace of mind.