Written by: Evelyn Suvajdzic
In our quest to provide proven business solutions to make life easier for our clients, I would like to share a recent read from the September issue of BC Business regarding the advantages of CPA-level bookkeeping.
Using a CPA-level bookkeeper can add to your peace of mind where your business is concerned as well as provide a certain level of clarity and financial intelligence.
There is always the question of whether adding a specific service will be cost effective. Many times I have been asked the question, should a business hire a CPA-level bookkeeper or not? Any business that has gone through a payroll or PST audit and found they had been recording transactions incorrectly and now owe much more than it would have cost for a professional bookkeeper would say, “Hire the professionals”.
If you are thinking any of the following thoughts, it is time to seek assistance from a professional:
- I am feeling overwhelmed and my receipts just keep piling up
- I really do not know who owes me money
- Is my payroll correct?
The advantages a CPA-level bookkeeper can provide include:
- Peace of mind that your financial records are correct
- Assurance that all government agency reports have been prepared and filed
- A clear understanding of your financial position using data, ratios and experience
What you should look for in a bookkeeper:
- A professional with sound financial experience
- Make sure you feel comfortable with them
- Ask questions to determine their level of competence. You could ask questions such as: “You made an error and recorded a sale twice, once as an accounts receivable sale and again, when the customer paid, as a sales deposit. How would you fix this error using a journal entry?” (answer: debit sales and credit accounts receivable)
- Ask them to explain to you the differences between a Balance Sheet, Income Statement and a Cash-Flow Statement. If they leave you more confused than when you started, they do not fully understand these reports themselves or the importance of them.
Using a CPA-Level bookkeeper can give you the insight to optimize your business operations and identify your next big opportunity.