Calgary Bookkeeping Services
When hiring a bookkeeper in Calgary, knowing which software they use is important because, as a Calgary business owner, you’ll need to use it too. Let’s review what you, as a Calgary business owner need to know to make an informed decision on bookkeeping software.
The success of your business hinges on many things, and bookkeeping is just one of them. But it’s an important one. If you don’t keep track of your company’s financial performance, you won’t know when you need to spend more money or spend less money. You won’t know the best time to sell products in order to make a profit. You won’t have any idea whether you are spending too much on raw materials or whether your suppliers are giving you a fair deal.
Without good bookkeeping, you won’t know if any of your expenses should be classified as a capital cost rather than an operational expense. And if your books aren’t organized well, you may not even remember which clients owe you money and which don’t. The worst of not having a good accounting system may be in reporting taxes to the CRA and being in so much trouble that you need a tax lawyer or tax consultant to save you from major tax trouble. If you and your poor choice in accounting create so much trouble then you could be forced into bankruptcy. Finding a bankruptcy trustee in Calgary isn’t too difficult but it’s much easier to just do your bookkeeping properly.
There are many great options when looking for Calgary bookkeeping services but understanding booking software and the basics of accounting is important.
Why Should You Care About Bookkeeping?
If you own a business, you need to care about bookkeeping. That is because bookkeeping is the process of recording financial transactions and calculating company profits or losses based on those transactions. The information that you log in your business’s bookkeeping system is what will be used to generate your financial reports, including your balance sheet, profit and loss statement, cash flow analysis, and your company’s financial ratios (e.g., return on equity, debt to equity ratio). All of these financial reports are extremely important to you as a business owner. Without them, you would have no idea how your business is doing financially. You would have no way of knowing whether you are making a profit or losing money. The only way to be sure that your business is financially successful is to properly do your bookkeeping.
What Is Bookkeeping?
Bookkeeping is the process of recording all of the financial transactions that take place within your business. These transactions can be the money you earn, the money you spend, or the money you owe to others. The bookkeeping system will then use that information to calculate your company’s profits or losses. Bookkeeping is typically done using computer software. The software will track all of your business’s financial transactions and then generate your company’s financial reports. Bookkeeping is usually done monthly, quarterly, or annually depending on the type of business. The Financial Accounting Standards Board (FASB) has a set of reporting standards that all businesses must use.
Why is Good Bookkeeping Important to Your Business?
There are several reasons why good bookkeeping is important to your business. First, it provides you with an accurate picture of the financial health of your business. If you have good records, you will know if the company is generating profits or incurring losses. Second, proper bookkeeping allows you to keep track of your company’s spending. You will know how much money you are spending on supplies or employee salaries. Without good bookkeeping, you won’t even know how much money you are spending on utilities or rent. You may also forget to pay some of your bills, which can lead to bad credit. Third, good bookkeeping allows you to keep track of your company’s income. You will know how much money you are earning from the sales of your products or services. You will also be able to tell which customers are paying their bills and which ones are not.
The Importance of Accrual Accounting
Accrual accounting is a form of bookkeeping that many companies use. It is a method of recording financial transactions based on when they occurred rather than when they are paid or settled. Accrued expenses are logged when they happen, even if they are not paid until a later date. If you use cash accounting, the system will log all transactions when they are actually paid or settled. The result is that the difference between the two methods is that accrued expenses are logged when they happen, which is a more accurate picture of your financial health. You need to make sure that your bookkeeping software supports accrued accounting. If it doesn’t, you should find a different software solution.
Which Type of Accounting Is Right For Your Business?
There are several types of accounting that businesses use. The most common ones are cash, cash flow, or accrual. Many businesses use a combination of two or three of these methods. Accrual accounting includes all expenses that were incurred during the month, even if they are not paid until the next month. It also includes any revenues that your business earned during the month. Cash accounting includes only the money that is actually received or paid out during a given month. Cash flow accounting is a combination of cash and accrual accounting. It also considers a business’s assets, liabilities, and net worth.
How to Find the Best Bookkeeping Software for Your Company
Any bookkeeping software will help you track your company’s financial transactions and generate financial reports. But some are better than others. The best bookkeeping software will be easy to use, have robust reporting tools, and integrate well with other business software. When selecting software, make sure that it is designed for small businesses rather than for large corporations. Some businesses try to save money by purchasing the lowest-cost solution. The problem is that these solutions are often very poorly designed. They can be difficult to use and not worth the money you spend on them. The best way to find the right software is to read reviews and to talk to other businesses that are using it. You can then use the following factors to help you determine which software is right for you.
We use Quickbooks but oddly enough, we wouldn’t recommend it. Once it sent out an invoice reminder to all of our clients when they already paid their invoice. This reminder “feature” wasn’t something we asked for but it looks like Intuit added it to an upgrade anyway. Overall – we think it’s a cumbersome tool.
One of our clients uses Zoho Books and we haven’t heard them complain.
Please note that both of those links should take you to the Canadian version of their accounting software – that’s because Canada has unique taxes, accounting, and reporting codes.
We weren’t sure if our own software experiences matched those of others so we looked in to this Forbes article on bookkeeping software and their views were similar.
How to Optimize the Bookkeeping Function in Your Business
Once you have chosen a bookkeeping software solution, you need to make sure that you are using it correctly. Here are a few ways to optimize the bookkeeping function in your business. – Create a Bookkeeping Schedule – Logging your company’s financial transactions is time-consuming. It is important to create a schedule so that you know when you need to log new transactions. You should also make sure to log all transactions, even if it is something as simple as paying a bill. – Use the Correct Chart of Accounts – Make sure that all of your financial transactions are logged under the correct chart of accounts. If you log them under the wrong account, your financial reports will not be accurate. – Separate Your Business and Personal Transactions – Make sure that your software allows you to keep separate accounts for your business and personal finances. If you don’t, it will be very difficult to determine which transactions are related to your business.
The success of your business relies on many factors, but good bookkeeping is an important one. Keeping track of your company’s financial performance is critical. You won’t know when you need to spend more money or spend less money. You won’t know the best time to sell products in order to make a profit. You won’t have any idea whether you are spending too much on raw materials or whether your suppliers are giving you a fair deal. Without good bookkeeping, you won’t know if any of your expenses should be classified as a capital cost rather than an operational expense. And if your books aren’t organized well, you may not even remember which clients owe you money and which don’t.