Sundeep Shah

Thursday, 6 November 2014

When to Hire Bookkeeping Services in Toronto

Entrepreneurs mostly base themselves on DIY mentality. That makes it difficult to justify the need for hiring the service of a bookkeeper. They think that user-friendly software is quite enough to deal with the subject. While one can deal with basic accounting easily, a lot of time is spend that could be used for other business needs. 

A Bookkeeper or an Accountant.

There is a need of both of them. As an accountant informs, it is easy to analyse the full financial situation and provide important advice. Then key financial documents are produced like a profit-and-loss statement as well as taxes of the company. 

Once over with tax, the accountant can work as chief financial Officer, providing advice on financial strategies and helping entrepreneur to deal with issues like if there is a need to secure credit against receivables during the introduction of new products.
In contrast to that, the day-to-day tasks are dealt with by the bookkeeping services Toronto. These include filing of all necessary paperwork by new employees for payroll, paying bills and submitting invoices and making follow ups. The company’s expenses are also kept tab of by the bookkeeper to ensure the entry of every cost and recording of the same correctly.

Every year there are millions and millions of transactions with the business and these could be dealt with by few hours of sorting every week. This also helps to get a good knowledge about the expenditure that is spend against the budget. There is no chance of incorrect billing to clients or missing important payments. Hence there is a need to keep a bookkeeper to remain strategic on spending your money. 

When to Bring in a Bookkeeper

During the running of the business for some months, as you come to know where from the money is coming and where it is going, and you will find hiring a bookkeeper a worthy decision. The bookkeeper can take only one day a month to keep stock of the business situation.