The Fundamental Traits Of Good Accountants

 
Is your business in need of a bookkeeping solution?

When searching for an ideal business bookkeeper, you should find out the when what, who, how and where of accounting professionals. (That’s because what might be best for you may not work out in another business type.)

In this post, I outline 10 critical areas to consider when choosing bookkeepers and the pros and cons of each.

Fundamental Traits Of Good Accountants

The bottom line is that your bookkeeping solution should give you regular updates and reports that will ensure you make the right decisions every week.

1. Experience

When it comes to a choosing a business bookkeeper, bear in mind that their experience matters. The reason is that you may think since you run a small business, you need a bookkeeper with minimum experience. What you should know is that you need as much experience as you can get. Bear in mind that for your business to grow, you need the best accounting and bookkeeping to enable you to maximize its profits.

Experience does not always mean you’re hiring the best. That’s because you may find someone who has worked for 20 years as a part-time landscaping bookkeeper. They may have the experience, but they may lack the know-how and depth that needed for a new startup company. It means you need to create a list that specifies the depth, type, and knowledge that you need.

2. Education

The person in charge of your bookkeeping should have some formal accounting and business information education. A business degree by itself doesn’t qualify someone to be an excellent bookkeeper. Ensure that your person has the right knowledge that matches your business, both for today and for the future.

The best bookkeeper should always be thinking ten steps ahead. Rather than solving problems, they should prevent them. Someone with a formal education in accounting will understand the strategy, ethics, and tactics, policy, and procedure that will help you to grow your business. They should have the desire to stay sharp and focused and always look forward to helping your business become a financial success.

3. Oversight

You may not be an accountant, which means you may not have the knowledge, resources, and desire to check the work being done by your current solution for bookkeeping. They may have CPA certifications, but remunerating them to do monitoring can be costly. It means you must include monitoring as a consideration.

Oversight has various levels. If you employ someone without training, and formal education of a bookkeeper, the need for control will be a priority. Remember that oversight has many levels. However, if your solution has years of experience and education, monitoring will be less costly and simpler.

4. Banking Technology

Conducting commerce over the internet is not just a luxury in the 21st century. That’s because for you to stay competitive and healthy, you need to work with third-party companies and your bank to receive payments and pay bills. One key aspect of your business can access any financial data of your business remotely. You should “ensure your accounting and bookkeeping solution can conduct your business online securely and safely.” says ICMS.Online who was kind enough to share such valuable information.

5. Systems and Software

Do you still write checks to pay employees, vendors, and others? The best 21st-century accounting and bookkeeping solution should be able to carry out a significant part of your business’s financial transactions electronically. We can do some parts of these operations for some time; although the problem is that these “time-saving” technologies haven’t been integrated into some older technologies used by bookkeepers.

The good thing is that a few accounting and bookkeeping solutions have been able to sew them together. The result is an efficient, cost-saving and streamlined means of keeping your business books virtually. Bill.com and QuickBooks, working with online banking platforms, now enable you to have a smooth flow of funds and information from a single access point, anytime and anywhere, to name one example.

Ensure that your bookkeeper assists you in transferring your documents, that’s if you haven’t already set up these systems.

6. Procedures and Accounting Policies

Procedures and policies are the guidelines that establish how your accounting and bookkeeping should be done in your business, for instance, how bills are paid, how items are posted, who reviews what and when and how you close monthly books.

The bookkeeping solution should set up these simple guidelines. You may follow government loans types or be a nonprofit, which means you have to follow specific procedures to grants, fundraising, and loans. The solution should direct and guide you in coming up with policies. They should also follow them.

7. Reconciling, Reporting and Data Entry

Bookkeeping is more than entering numbers in a ledger. It involves understanding the business, inflow, and outflow of cash and the daily input of information. These details enable you to respond to situations that arise fast. For instance, if you have equipment that you rely on, and then it stops functioning, you will need to borrow money to replace it unless you have cash at your disposal. It means you will spend weeks or days to ensure your bookkeeping satisfies the lending institution or bank, or you can just print out current details. The days or weeks can mean the failure or success of your business.

Staying up to date on reconciling, data entry and reporting means that you go into the tax season armed with every depreciation, deduction, and expense that you should have, which saves you hundreds/thousands of dollars on your tax bill.

The bottom line is that your bookkeeping solution should give you regular updates and reports that will ensure you make the right decisions every week.

8. Any Business Can Be Made or Broken By Cash Flow or Lack of It

The best bookkeeper should understand your business’s financial needs from day to day up to month-to-month. Your accountant should foresee problems and assist you in making the best decisions.

9. Planning and Tax Preparation

An ideal bookkeeping solution should warn you about red flags, for example, regarding unforeseen tax burdens.

10. Strategy and Credit Management

Your following the bank’s terms. The business bookkeeper should exercise discipline, planning, and consistency to ensure you prevent business-threatening scenarios from happening. A good cash management and bookkeeping solution should make sure that your credit lines are a priority, the reason being if you screw your credit rating, it may be impossible to recover.

As a Chartered Professional Accountant in Surrey, CP Lehal & Company can provide affordable accounting and financial services to minimize tax liability, and maximize your tax savings. Our Surrey Accountant provides clients with utmost assistance in Corporate and Personal Tax, Auditing, Review Engagement Reports, Business Consulting, Bookkeeping & Payroll, T4, GST, WorkSafeBC (WCB) and Employer Health Tax (EHT).