All businesses need bookkeeping. At the very least, recording income and expenses allows a business to determine its profitability. Bookkeeping also prepares a business for completing annual financial statements, which may be required by law. Finally, regular bookkeeping means “the books” can be queried at any time for a current snapshot of how the business is performing.
Bookkeeping can’t be avoided. The question is, do you want to do it yourself or hire someone to do it for you?
Do I need a bookkeeper?
Many business owners believe that by doing the books themselves, they will gain a better understanding of their business. In actuality, it is better to have an experienced bookkeeper keep the books and produce monthly or quarterly reports for the business owner to examine.
A business owner should focus their time and energy on their area of expertise, and hire others for theirs. Time spent bookkeeping is time the business owner could have devoted to running the business or to his or her personal life. Lack of knowledge regarding bookkeeping could lead to time-consuming and costly mistakes.
Can my accountant handle my bookkeeping?
An accountant is absolutely qualified to perform bookkeeping tasks; however, just as your time should be devoted to your area of expertise, a business’s accounting budget should be spent on accounting. If you’re paying an accountant’s rates, you should receive skilled accounting services in return. A bookkeeper’s rates will be much lower than an accountant’s.
How do I hire a bookkeeper?
It is important that your bookkeeper has a thorough understanding of your business’s needs. A bookkeeper may have many years of experience, but if none of that experience is with medical or dental professional corporations, you should continue with your search. The same is true when looking for an accountant or lawyer: they must have prior experience in your field. You don’t want to pay for someone else’s education, or worse, time spent correcting mistakes. References can be very helpful for confirming relevant experience.
Does TPC offer bookkeeping services?
We have made bookkeeping services available to clients for many years. With over 30 years of experience with medical and dental practices, our bookkeeper is keenly aware of a professional corporation’s needs. Services include:
- Categorizing and balancing of bank, loan and credit card statements
- Tracking investments: adjusted cost base, capital gains & losses
- GST/HST reporting
- Payroll source deductions
- Corporate tax payments
- Accounts payable & accounts receivable tracking
- Home office expenses
- Dividends
- Preparing books for year-end/accountant