Are You Ready if the Auditor Comes Calling?

Are You Ready if the Auditor Comes Calling?

Let’s face it… when you’re a small business owner, you have more important things to do with your time than gathering your bank statements, credit card statements, receipts, and deposit information for a bookkeeper. Not only is doing so quite tedious, but it also sounds really boring, don’t you think? But you know what’s even worse? A Canada Revenue Agency Audit!

When you think about it that way, organizing and staying on top of your finances doesn’t seem so bad! And although audits are unavoidable, having the right bookkeeping service can help make the process less stressful in the long run. If you’re considering hiring a bookkeeper, here are two valid reasons to do so.

1. Hiring a bookkeeper can assist small business owners in cutting costs.

Many people, for example, discover that they save money on accountant fees during tax season because their books are neat and in order.

One big lie we all tell ourselves is that we don’t need to write something down because we’ll remember it later. Or we’ll find those receipts for business expenses and/or dinners because we’d never throw something like that away, right? Why take that risk?

One reason you should keep accurate and up-to-date records of your revenue and expenses now is that you are more likely than not to forget three years from now – which could certainly come back to haunt you if you’re selected for an audit. So having your bookkeeping in order makes an audit go much more smoothly.

2. When your bookkeeping is organized, government filings can be kept up to date and deadlines can be met.

Filing on time is the law. Understandably, some businesses struggle to pay their HST obligations at certain times of the year due to a lack of cash flow. However, hiring a bookkeeper who oversees and keeps your financials up to date on a monthly or even quarterly basis helps small business owners make smart decisions about purchases, staffing, raises, and so on. This also includes liabilities such as how much HST they owe or payroll remittance they will have to pay. It is also important to note that there are penalties for late payment, but the law requires the HST report to be filed ON TIME. At Mind Your Own Business, we work with our clients and communicate with them regularly as we maintain their books and ensure that all government filings are completed on time.

Are you ready to get started? Great! Although you are always welcome to bring your bags, boxes, and folders of receipts for us to sort through, we also have a secure online portal where people can upload digital files! We are very customer-focused, and we are open to receiving your information in any way you prefer. Also, some clients prefer to do their own invoicing and/or payroll and we do the rest – but, once again, we can provide a customized service package based on what YOU require.

It’s in The Name

It’s in The Name

Many small business owners feel they need to oversee every aspect of their company, especially when they are first starting out. As their company grows, however, they may find it increasingly difficult to keep up with all the demands of the day-to-day operations. One main area where most experience challenges is with keeping track of their finances. And, of course, keeping immaculate books is a must.

Have you reached this stage and could use the extra assistance with your finances? If so, then you are probably ready to hire a bookkeeper who will help you get back and/or stay on track. But with so many choices out there, you may be wondering how to go about finding the one that’s the right fit for your business.

In their article, “How Hiring a Bookkeeper Can Strengthen Your Business,” Mindbody Business shares a useful list of the benefits of working with a bookkeeper. Here are some highlights:

You get “mission critical” info.

With a professional bookkeeper, your financial statements are compiled correctly and according to accounting principles. This ultimately helps your accountant file the taxes quickly and easily.

At Mind Your Own Business, we like to invest a little extra time with a new client. This extra time is spent listening to what they EXPECT, what they want moving forward, and what their perspective is about the service they are requesting. We also meet with each of our clients to help them understand expenses and cashflow.

You could pay less in accounting fees and taxes.

Experienced bookkeepers understand common expenses within your industry and can let you know which business expenses are tax deductible. This potentially saves you money in the long run.

In a nutshell, bookkeeping is customarily data entry based on statements and receipts provided by the client and reconciliations with all bank and credit card accounts. Our bookkeepers understand the rules of tax laws, as well as the fundamentals of basic accounting principles.

You will save time.

By spending less time on administrative activities, such as bookkeeping, you will have more time to concentrate on what matters most to you — your customers and business success.

Our company’s name says it all as we start the conversation with our potential clients! This is what we are saying to them: “We want to help you Mind Your Own Business! You are hiring us to serve you in the best way for you, so YOU can make decisions for your business.”

It is truly rewarding for us to share success with our respected customers who entrust us with their administrative and operational support services. Are you ready to get started? Contact us today by calling 519-657-4283 or by filling out our online form. Let us know how we can help you mind your own business better!

What is Less Fun Than Preparing Files for Your Bookkeeper?

Customers moan and groan about getting bank statements, credit card statements, receipts and deposit information gathered together for the bookkeeper. What is less fun than that?

A Revenue Canada Audit!

One of the reasons that you should have an accurate and up-to-date record of your revenue and expenses is that you will never remember three years from now, who you dined with on February 10th or what you bought that day that you claimed an expense that is on that fading white cash register tape. Having your bookkeeping organized makes an audit much smoother.

Government filings can be kept current and deadlines met when the bookkeeping is current. FILING on time is the law. Understandably, at certain times of the year, some businesses struggle to pay their HST owing as the cash flow is low. There are penalties for late payment, but it is the filing ON TIME of the HST report that is the law.

For yourself, to see clearly where you are spending your money and what products or services are bringing money into the business, your income statement is a valuable tool for you to analyze your financial situation and make plans for business development moving forward.

Not knowing your financial situation is like running your business blindly. You may be surprised to see that your bread and butter is in the smaller activities and that you need to pay attention to keeping those thriving while you chase the big projects, or you may see that too many resources are dedicated to the smaller activities that are lost leaders for your company.

At Mind Your Own Business, we work with our clients and communicate regularly as we maintain their books and make sure the government filings are on time.

Bookkeeping

Thank you for reading this blog post! Bookkeeping is generally an unwanted discussion piece. Right up near the word “budget” that gives people chills, bookkeeping can be overwhelming if a business owner does not stay on top of spending and revenue collections. Income tax filing becomes a nightmare.
Some of our clients prefer their bookkeeping to be a monthly activity and some prefer quarterly. In every case, we make sure that the client has access to their income statements and balance sheets and a detailed explanation of both.
If you have not kept track of when your HST filing is due, we have and will make sure you are not behind on the filing – a legal requirement.
Tidy and organized = less stress. We can help you keep your business expenses and income recording tidy and organized so you can manage your business better.