Once you’ve hired a bookkeeper, there’s still an important question to answer: what should you actually expect from them? It’s not enough to have someone working on your books. You need to know what’s happening in your business while there’s still time to do something about it. 

Don’t Build Your Business Around One Person 

Finding someone who can handle a wide range of responsibilities sounds like a great solution, but what happens if that person leaves? You could find yourself having to train someone new to take over everything they were doing. 

A bookkeeping firm gives you some protection from that problem. If one person leaves, you’re not starting over and training someone else from scratch. The firm can continue handling the bookkeeping as your business grows. 

Your Financials Shouldn’t Wait for GST 

One thing I’d want to see from a bookkeeper is your financials every month. We see situations where the reconciliations don’t get done until GST is due, so the books can sit for months before the business owner gets a clear picture of what’s happening. 

If you’re paying someone every month to do your bookkeeping, you should be getting that information every month too. The GST deadline shouldn’t be what determines when your books are reconciled. 

Know If Your Business Is Actually Making Money 

You need to know whether you’re profitable while there’s still time to make changes. What good is finding out months later that you weren’t making money during the summer? By then, the summer is over and the opportunity to adjust what you’re doing has already passed. 

The value is getting that information while you can still do something about it. If the numbers show that something isn’t working, you have a chance to change course before you’ve spent another few months doing the same thing. 

Job Reports Matter for Contractors 

If you’re running a job-based business, your financials should tell you more than whether the business as a whole is making money. You should also be able to see how each job is performing. 

For a contractor, those reports can show you which jobs are making money and which ones aren’t. That information gives you something to look at when you’re bidding on the next job and figuring out your costs. 

What’s Next? 

Your bookkeeping relationship is only one part of the financial support your business needs. There’s another side of that relationship that’s just as important: knowing what to expect from the people handling your accounting. 

In the next part of this series, we’ll look at that side of the relationship and what you should be getting from the people handling your accounting. 

Please note: This content is for general information purposes only and does not constitute personalized accounting, tax, or financial advice. Reach out to us to book a personalized consultation based on your business and financial situation.