Why is it necessary?
Bookkeeping
1. Why is bookkeeping important for businesses?
Bookkeeping helps businesses maintain accurate financial records, which are essential for tracking performance, for preparing tax returns, making informed decisions, and ensuring compliance with the CRA.
2. What are the main components of bookkeeping?
The main components include recording transactions, maintaining ledgers, managing accounts payable and receivable, reconciling bank statements, and preparing CRA-compliant financial statements for tax filing.
3. How often should bookkeeping be done?
Bookkeeping should ideally be done regularly—daily, weekly, or monthly—depending on the volume of transactions. Regular updates help maintain accurate records and make year-end processes smoother.
4. Why are small-businesses switching to outsourced accounting services?
Reduced Overhead: Hiring full-time or part-time, in-house accounting staff requires costly salaries, benefits, and possibly even office space or equipment. Outsourcing allows small businesses to avoid these costs and pay only for the services they need.
5. How can I be assured that the bookkeeping is accurate?
To ensure accuracy, your business bank account statements will be reconciled at the end of every month with the month-end records of the journal entries, which guarantees consistently accurate records throughout the year when compared to other firms that only reconcile on a quarterly-basis. Months can go by without you even knowing if the records you’re looking at are a true representation of the business’ current performance.
6. What are common bookkeeping mistakes to avoid?
Common mistakes include failing to keep receipts when purchasing with cash, especially, mixing personal and business expenses. We highly recommend sending us a quick photo of the receipt of the item paid with cash for us to immediately journalize the transaction.
7. How can bookkeeping help me with tax preparation?
Good bookkeeping provides organized financial records, making it easier to calculate taxable income, track deductible expenses, and prepare for audits. It simplifies the tax filing process and helps maximize deductions.
Payroll
1. How can outsourcing payroll help reduce business costs? Outsourcing payroll reduces operational overhead costs. With an external payroll provider, businesses don’t need to invest in payroll software, hire dedicated payroll staff, or allocate internal resources to manage complex tax filings, deductions, and remittances. This leads to lower administrative costs and potentially fewer legal or compliance-related expenses due to mistakes or missed deadlines.
2. Why are businesses becoming more comfortable with outsourcing payroll processes? Payroll specialists that are members of the National Payroll institute are continuously updated with the latest legislative and regulation changes occurring in every province and territory. With the world’s technology advancement over the past decade, these updates are delivered to us at an instant, so that we can make the necessary adjustments in payroll software before your employees’ next pay. This minimizes the risk of incurring penalties for errors or late payments wherever your employees report for work.
3. What about the confidentiality and security of employee payroll data when outsourcing? We use state-of-the-art security systems to safeguard your business and employee payroll data. This includes encrypted databases, secure communication channels, and compliance with privacy regulations such as the Personal Information Protection and Electronic Documents Act (PIPEDA), a federal law, and provinces with their respective privacy regulations. Outsourcing payroll can therefore offer enhanced security, reducing the risk of internal and external fraud or data breaches.