Why do I need a bookkeeper?
Here is one example: I met a business owner who was in business for 5 years and he said that he can’t understand why he must put more and more money into the business. He complained that he got money against his house, he borrowed from family and friends, but he’s still struggling to keep it going. He rightfully asked himself – this business supposed to get roof over my family and put meals on our table. I asked him if I can look at his financial statements, but he replied that he never had the financials. How would you know if you make money or lose money? How can you make a correct decision without financials? You should be able to monitor your business, make proper adjustments or just know when to stop.
Second example: dealing with all levels of government – CRA, Provincial and municipal authorities. What is your income? Expenses? Taxable income and taxes? Accountants and bookkeepers are dealing with authorities. I had a gentleman calling me and telling that he had a conversation with a taxman and received a bill over $4600 shortly after. It turns out that he provided insufficient information and as he said - answered a question incorrectly and just based on his statement an officer assessed his tax account. I worked as a Trust accounts examination officer with Canada Revenue Agency for near 11 years and personally met hundreds business owners. Please be careful what you’re saying, because simple misunderstanding may lead to an assessment or further review of your books and records.