Updated on 28 July 2024

You oversee many company operations as a small business owner in Canada or N America. This is the case mainly when you have limited staff, meaning you are still responsible for many tasks. While running your entity is fulfilling, it can create a chaotic setting that constantly drains your energy.

Among the tasks demanding your time and attention are reconciling all your financial records and tracking business expenditures. You want to keep all financial information up to date because your company depends on the availability of funds.

Based on the importance of having a solid online system to track your finances, you must invest in professional services to help you stay on track. Working with an experienced accounting firm is an excellent option, as you will receive bookkeeper and support services. They can either provide full or part-time services, depending on your preference.

Why You Should Aim to Hire a Bookkeeper in 2024

A bookkeeper is a professional tasked with entering financial transaction records to help you track your expenditures. When you employ a bookkeeper, he/she plays an essential role in company operations because they collect the data for accounting procedures.

When you employ a bookkeeper, you can expect them to create records for invoices, payrolls, and money taken on credit for the company, among other transactions. A bookkeeper is also responsible for updating you if they identify irregular transactions.

Since the nature of a bookkeeper’s work is closely related to an accountant’s, they can work together. The accountant steps in part-time to process all the information your bookkeeper records, so they must maintain clear communication at all times.

When choosing your bookkeeping service provider or hire, you must establish their ability to handle tasks and whether they fit your company culture. Doing so ensures you are hiring an expert bookkeeper who will propel your company to success.

If you are unsure about whether to hire a bookkeeper for your business in Canada, here are a few reasons to consider it:

You Save Time When You Hire a Bookkeeper for Small Business

Doubtless, checking through all financial transactions and creating records can take time and effort. You are bound to spend a lot of time because you intend to undertake the work without errors so that your company’s financial position is clear.

Due to this, you, as a business owner, may spend too much time working on financial records entry and need to remember to handle other urgent matters. For better time maximization, you want to employ an experienced bookkeeper who will handle your record-keeping tasks.

You are Better Prepared to File Your Taxes

Business owners must file tax returns on time to avoid penalties and possible company closure orders. Your tax return details should also be accurate and reflect all relevant transactions made throughout the financial year.

Thanks to the services you outsource from a bookkeeper, your financial records are accessible and remain accurate to help with the processing. Thus, your accountant must only transfer the documents to their calculations and prepare your tax return records on time.

You Have a Better Chance to Focus on Your Business Needs

By hiring a bookkeeper to take over tasks related to updating your financial transaction records, you will enjoy more free time. You can then use the time to explore new business ideas and adjust existing ideas that no longer meet your expectations.

Additionally, working on your company may involve sourcing new clients and investors to change your business trajectory. You are also open to creating long-term company goals by referencing the current financial records made by the bookkeeper you employ.

You Avoid Serious Financial Errors When You Find a Book Keeper for Hire

Although you may be careful when entering financial transaction records online for your business, you may still be prone to errors when working on it yourself. This is because your mind may be otherwise engaged, primarily overseeing multiple projects. Further, you could misinterpret some records, increasing the risk of error.

When you employ a professional bookkeeper to handle your records, you will be less prone to severe errors that could cause losses for your company. Since your bookkeeper is trained to maintain accuracy in their tasks, they handle your records more professionally.

Even where errors may arise, your bookkeeping service provider is answerable for the outcomes and may have to bear part of or full responsibility for negligence. With this in mind, you can worry less about incurring significant losses in your company. Hiring a bookkeeper is therefore advisable from a legal perspective too.

You Make Informed Investment Decisions When You Hire a Book Keeper

Your business may occasionally require you to make investment decisions to help scale it and create more opportunities. However, you can only make sound investment decisions if you know your company’s financial status. To obtain the information, you must also have accurate financial records covering a considerable duration of transactions.

With the skills and expertise of a bookkeeper for hire, you may make a financial decision informed by accurate financial records. Consequently, you could lose your business stability and risk dealing with losses.

On the other hand, referring to financial records created by a bookkeeper assures you that all records are accurate and professionally recorded. Therefore, hiring a professional helps you make bold investment decisions for the benefit of your company.

You Can Pay Your Employees on Time

Upholding employee morale is critical in running a company because they help maintain your day-to-day operations. The best way to sustain good employee morale is by paying them on time consistently.

To do this, you must use accurate financial records updated by an experienced bookkeeper. As a result, you should consider hiring a bookkeeper as soon as possible to help your employees remain motivated to help build your business.

Conclusion

To sum it up, hiring a bookkeeper for your business opens you up to creating more time for your company needs. You will have fewer demands to meet, making you open to looking for better ideas and collaborations. Further, you are assured that a professional bookkeeper is handling your financial records, and you do not have to worry about financial losses. By partnering with an experienced and skilled accountant, you are one step closer to scaling your company.

Hiring a bookkeeper for your business in Canada can lead to a significant return on investment by streamlining financial operations and reducing tax liabilities. Bookkeepers ensure accurate financial records, which can help identify potential tax deductions and credits that might be overlooked. According to a study by Intuit, small businesses using professional bookkeeping services save an average of 20% on their taxes annually. For more information on the benefits of professional bookkeeping, visit the Government of Canada's guide on managing business finances or contact us.