Top 5 Things To Consider Before Hiring A Bookkeeper
Filing your taxes and having a system for paying them appropriately is vital to your business’ success. Understanding the important role paying taxes plays in your business, it’s crucial to hire financial and tax planning experts that are up to date with constant changes in Canadian tax.
As a business in Canada, you need to file your annual tax return. Usually, the deadline for filing this is two to three months after the business year-end. Financial and tax planning experts will help you save money by identifying opportunities to minimize tax ethically and legally. This, among many others, is one of the main benefits of hiring an expert bookkeeper.
Bookkeepers help you focus on what you do best as a business owner. They help you stay on only doing essential growth-building tasks to expand your business. The problem is that hiring an expert bookkeeper requires thought and experience. Hire the wrong one and it could cost you. Hire a great bookkeeper, and you’ll see your business grow to new heights while making the CRA happy.
Here are the top 5 things to consider when hiring a bookkeeper.
1. Scope
Not all bookkeepers are equal. In fact, there is a big difference between the services each one offers. Thus, it is first important to take a look at the scope of work your bookkeeper can do before hiring them on the spot.
Some of them act as a consultant or manager wherein they could help interpret what the figures mean. Others, on the other hand, can only do data entry.
Here is a list of things you should consider.
- Forecast a budget for cashflows such as cash inflows and outflows
- Prepare profit & loss statements and balance sheets
- Consolidation of bank transactions
- Filing annual tax reports
2. Qualifications
Throughout your search for bookkeepers or financial and tax planning experts, you will find and come across those that have a diploma, an accounting degree, or those that are CPAs or Chartered Accountants.
Some questions to ask your prospective bookkeeper are, “Are they registered with the Tax Practitioners Board in Canada to file or lodge a BAS?” Make sure to check if they have the qualification and registration requirements to meet the tax filing goals of your business.
The truth is that bookkeepers are divided into two groups: specialists and generalists. Determine the needs of your business to know if you need someone who can do surface-level tasks or someone who could do something more complex.
3. Expertise
As a business owner, it can be hard to gauge the level of expertise of your bookkeeper. After all, you are not an expert bookkeeper yourself. But a good rule of thumb is that a good bookkeeper can processes accounts and transactions accurately in a timely manner. A great bookkeeper, however, is someone who can spot errors, even their own, and correct them.
Ask your bookkeeper’s previous clients. Were they able to process accounts accurately and on-time? Are they more detail-oriented or a strategic partner that can be an advisor as you grow your business?
It literally pays for your business growth to dig in a bookkeeper’s expertise and work experience to know if you will be a suitable fit.
4. Communication With Clients
A great bookkeeper should feel like a sidekick. Someone who will be there with your best interest in mind to help you grow your business further. With that in mind, communication is key. And I’m not talking about the frequency of when you’ll be sitting down to talk to them weekly, bi-weekly, or monthly.
They must communicate with you in a language that you as a business owner understands. After all, you don’t want to bother yourself with accounting knowledge. That’s their job. Moreover, if they can communicate with you swiftly and concisely that doesn’t take too much of your time, then that’s a good sign that they’re financial and tax planning experts who know what they’re doing.
5. Setting Expectations & Delivery Times
Common complaints with bookkeepers are their slow response and turnaround time. Ask them what you should expect from them on a monthly, weekly, or even a daily basis. Also, ask them about their average turnaround time for the specific questions you ask them regarding your business.
Finding The One
With all this said, you could still be left scratching your head when you’re scouting for that one bookkeeper who could do the job right.
At Versatile Accounting, we have that all taken care of for you. Our clients have chosen us due to our expertise in the field as well as the open communication and commitment to service we have with our clients.
At Versatile Accounting, we are your tax and financial planning experts you can trust.
