You’ve decided you need a bookkeeping service to help keep your books in order and are in the process of deciding what sort of tasks you need them to do. Let’s have a look at what some different tiers of bookkeeping look like…
Annual Bookkeeping Service
If your business has no employees and simple accounts, annual bookkeeping service might be right for you. Your bookkeeper will ensure the reconciliations are done accurately, that your books are ready for year end and that your accountant will have all the documents needed to prepare your financial statements and tax filings. You’re responsible for recording expenses, deposits and managing your receivables and payables. Usually, businesses at this tier are operating on a cash basis with a chequing account and credit card. As a caveat, these accounts come in during the busiest time of the year and provide the least amount of client guidance.
Monthly Bookkeeping – Cash Basis
In addition to the duties of the previous tier, your bookkeeper will record all transactions as they appear on the bank statements and reconcile as needed. We’ll follow up with you regularly regarding any large purchases or miscellaneous transactions. We will calculate and file your monthly/ quarterly HST and balance your CRA accounts regularly, letting you know if any amounts are outstanding. Usually, businesses at this tier are operating with a chequing & saving account and a couple of credit cards. Payroll calculations and direct deposit would be an add on to this package.
Weekly Bookkeeping – Accrual Basis
In addition to the duties of the previous tiers, we’ll manage your accounts payable and receivable. You will provide us with any incoming or outgoing invoices and we’ll record them in your books. You can then either have us process payments on your behalf or communicate open invoices to you on a regular basis. We can help with saving receipts and entering bills.
We can process your payroll at this tier. We can facilitate time sheet recording for employees to ensure proper paycheques. In addition, they will communicate your PD7A amounts owing to you at the beginning of each month and can process your payment to the CRA. We’ll communicate any monthly/ quarterly HST or corporate tax payments to you and process if approved. Usually, businesses at this tier are operating with multiple bank accounts, multiple credit cards and potentially USD accounts.
Additional items to consider:
A Scorecard – or Monthly Key Performance Indicators – let us tailor a custom reporting on key performance indicators for your business. KPI measures include cash flows, collection metrics, inventory, year over year analysis, and gross margin reporting etc. The right KPIs are different for every business.
Sick of cutting cheques? Consider automated payment solutions such as Plooto or Payment Evolutions to pay your bills and suppliers. This step alone can save an owner 5 hours per week.
Consider direct deposit and email pay stubs for employees. Employees are happier when they are paid regularly and have immediate access to their paycheques. A business owner can save 3-5 hours per week plus eliminate the risk of cheque fraud.
Wondering which options are best for you? Set up a consultation with us and let’s discuss the best solution for you.