Bookkeeping services may not be given their due importance; however, if you are a small business owner, you would understand that there are quite a lot of transactions that are performed in a small business and thus, require the business to employ professional bookkeeping service providers who can ensure that every transaction is documented.
Are you not sure about employing a firm that provides bookkeeping services in Toronto? Keep reading, and you will understand exactly why you need it.
What does bookkeeping in Toronto entail?
The responsibilities of a bookkeeper are many, but the most common ones include the following:
- Compiling transactional data on a daily basis
- Categorizing all expenses in the general ledger
- Reviewing the transactions and entries in the general ledger for accuracy
- Reconciling all periodical bank statements against the general ledger
- Generating periodical financial statements
Easier audit and reporting
Creating financial statements is much easier and faster when you have a better data entry model. Checking will be much easier for you than if your accounts have quite a lot of transactions, the accounts are cluttered or even slightly outdated. Every auditor you hire will need access to detailed financial statements and reporting comparisons to know exactly what was done. They can create their message quickly, and all mistakes come to the surface. These can only be sought if you take help from a bookkeeping services provider in Brampton.
Compliant with the law
A good accountant or bookkeeper in Brampton will always abide by the laws and make sure all your accounts and books are up to date with recent legal changes. Since the accountant is responsible for whatever work he does, you can count on him to correct any mistakes. This saves time and effort, which in turn saves the business money.
Better tax forecasting
While the IRS will require an official financial statement from your company for tax purposes, you will be able to predict the outcome more accurately if you have access to detailed financial statements over time. With them, you can follow the progress of your company’s business and be sure of the amount of tax you will have to pay at the end of the fiscal year. This can even help you in claiming tax rebates and leverage off measures that can help you reduce tax expenses of your business
Benefits of risk reduction
Two benefits of accounting risk reduction are the ability to detect fraud and embezzlement. You may not want to think about it, but there is always the possibility that your business will suffer fraud or embezzlement if you have employees or business partners. If your accountant is honest and good, he can detect suspicious business transactions. For example, if your business partner uses the company to pay $ 1,000 a month to a mystery consultant you’ve never heard of, your accounting records will show proof of that. If you’ve hired an accountant instead of doing it yourself, check the accountant to make sure he is doing an honest job.
Easier cash management
Some of the benefits of cash management include the ability to manage payroll and customer accounts on paper, create a business budget, and track deposits and payments. With cash management, you can track every dollar and penny your business spends. In “Accounting for the Uninitiated,” the author emphasizes the importance of creating a financial paper footprint for your business. Accounting provides the cash management required to create a financial paper footprint.
Faster financial analysis
Since bookkeeping services in Toronto tends to be cheaper than bookkeeping, it’s helpful to know that detailed records will reduce the time an accountant spends analyzing your accounts and creating financial statements. This will not only reduce your accounting costs but will also give you more time to take action based on the information provided by the analysis and change the strategies you may have planned.
Frequently Asked Questions (FAQs)
Is getting a professional bookkeeping service provider in Toronto required by law?
The law does not oblige one to hire professional bookkeeping services providers in Toronto; however, the way financial accounts need to be laid out and reported to the internal and external auditors would require one to hire professional bookkeeping in Toronto.
Can my professional bookkeeper also do payroll accounting for me?
Yes, a bookkeeper can also have the skills to be a successful payroll accountant because they do have the know-how of how the transactions are recorded and processed. Yes, your bookkeeper would probably charge you an extra sum which is understandable, but yes, they can be good for it.
Can I hire a bookkeeping service provider who works remotely?
Absolutely. It is possible for a bookkeeper to work remotely or be permanently remote. It can also help you save their administrative costs that might have been incurred had they sat in your office space.
What will my bookkeeper help me with?
Among a lot of things, your bookkeeper will help you with Data entry, Expense Tracking, Invoicing & Receipt Management, Transactional Checks & Bank Reconciliations, Accounts Payable & Receivable, Online Banking, Calculating GST, Cash flow Management, Budgeting, Compliance & Reporting Payroll, Awards and Superannuation changes, BAS Agent Services (IAS, BAS Preparation & Lodgment), Taxable Supplier Payments (TPAR), EOFY Processing, Management Reports, General Business Administrative Support, Business Planning, Profit & Loss Reporting.
Are accountants and bookkeepers the same?
Accountants and bookkeepers are not the same, which is why any small business will have to employ a bookkeeper as well as an accountant.
There is not a single entrepreneur or company that would not benefit from a detailed accountant. And when you hire an online accountant, you can have a lot more choices and be sure to find the best person or organization for the job at the most competitive price. As you choose from a larger fund, you will have a choice of more relevant and highly skilled professionals.