| A bookkeeper will ensure the business stays organized on two fronts: first, by submitting tax payments on time (many businesses waste money on interest charges for late payments), and second, by managing basic controls like cash flow, accounts receivable and accounts payable, explains Diane Capobianco of iCapital, a Canadian financial services company that works with many businesses struggling with cash flow. “A very good bookkeeper can also manage your monthly budget, and provide you with the actual-versus-budgeted figures that will ensure you stay on track budget- and cost-wise,” says Capobianco. In Canada, you can expect to pay $45 to $60 per hour for a senior-level bookkeeper. Many business owners try to get through the year on their own, and then turn to an accountant for assistance with reporting. If you are in the majority, you will benefit significantly from a better plan of action. By controlling daily activity, and seeking help to manage the books from month to month, compiling financial records will be easier and less expensive. Not to mention, overcoming finance-paralysis will allow you to see your business more clearly and make better decisions. “The goal is to keep good financial records because they will tell you why your business is making or losing money. Proper insight will enable you to make proactive adjustments to your costing structure so that you are more competitive in the marketplace, and could even tell you when it is the right time to expand,” says Rosenberg. If you struggle with getting your books in order at tax time, Rosenberg suggests making a 2014 tax resolution to get a grasp on your finances this year – starting right now.See also:
About the author: Liz Teodorini is Marketing Director at iCapital, a hassle-free and flexible financing solution for Canadian small businesses. The company, which is committed to being Canada’s most caring and responsive loan-alternative provider, frequently publishes articles relating to small business finance. | |