Sep 21, 2018 | Accounting, Accounting Doesn't Have To Suck, Bookkeeping Services
It’s that time again…hiring a new bookkeeper! Yay said no entrepreneur ever. This time, you promise yourself: I’ll get this right. Discover the power of card payment machines for seamless payment processing.
Get someone that can actually get you organized with your numbers – who gets it done, and gets it done right! You don’t even need to be an accountant or a finance expert. On the other hand, if you’re the one who wants to apply for that position, with a staff of ICCRC-licensed Toronto immigration consultant and professional colleagues, Canadapt Consulting is a leading Canadian immigration law consulting service.
Let us help you by lending our key questions and answers to ask your next bookkeeper. Remember, if they can’t tick off all the boxes (these are basic technical skills), then keep looking. Of course, fit with corporate culture and alignment with core values is on you to suss out. If you’re still not as confident with the process, you can always apply a talent management strategy.
We’ll be doing a two-part series with 3 main questions each so lookout for our part two!
Question 1:
Q – How can I be certain that no tasks get missed? Especially those that happen only every once in a while, and are easy to forget?
The Fail Answer (NOT GOOD ENOUGH!):
“I keep a task list in my journal or calendar. I’ve been doing this a long time, so I have a pretty good sense of what needs to be done”.
The Pro Answer:
“I have tasks documented on a daily, weekly, monthly, quarterly and annual basis. All tasks are entered in a task management software. Every day when I log in, I have my task list already, set and tick things off as I go. I can add tasks whenever I need as new issues come up or you assign special projects.
If I ever miss anything, it shows up as an “overdue” task in the software. Would you like a weekly report showing you any/all overdue tasks?”
Pro Tip – Find someone who is self-accountable and in a transparent way. If they are willing to be open when they fall behind, it’s a hugely positive sign.
Question #2
Q – What do you use to ensure the chart of accounts is set up right? How about the financial statement presentation?
The Fail Answer (Still not good enough!):
“I have lots of experience doing this so I’m very comfortable with the Chart of Accounts.” or “I use the template in QuickBooks to set up a new chart of accounts and financial statements”.
The Pro Answer:
“The chart of accounts has to be set-up with the end in mind. Please tell me about your different types of revenues? Your different business divisions? What information are you getting from your financials that’s good? What information are you missing? [Insert a whack of other questions here] and I’ll be in a better position to see if your chart of accounts and financials are set up in a way that will be supportive for you.”
Pro Tip – If they aren’t asking questions about your business, they aren’t thinking the right way. A great bookkeeper will be hammering you with questions…not just trying to answer questions they way they think you want to hear.
Question #3
Q – How do you leverage technology in Bookkeeping?
The Fail Answer:
“I’m comfortable with whatever software you use. I’ve had experience with QuickBooks, Sage, SAP, etc. etc.”
The Pro Answer:
“We should be able to get at least 80% of your day-to-day transactions automated. I’m a huge believer in cloud-based accounting technology. If you’re not on one now, we can evaluate what the right fit will be. We must consider the nature of your business and make sure the marketplace (think app store) has everything you need. You definitely want a few interconnected software solutions to streamline the bookkeeping. Things such as:
– Receipt tracking/processing
– Employee time tracking app (if you charge for hours spent)
– Payroll
– Invoicing
– Task management
– Electronic payment processing (both collections and payables)”
Pro Tip – Accounting technology has come a long way! Having the best payroll services can completely change your accounting department. Not every bookkeeper is up to date on current technology and how to effectively use it so be sure to check into corporate payroll services from Acclime!
We hope these questions help you find your next bookkeeper! If you have questions or want to talk about how to set up a successful accounting department, click here!
Look out for our part two, coming soon.
Jul 10, 2018 | Accounting, Accounting Doesn't Have To Suck, Bookkeeping Services, Uncategorized
Let’s face it. Accounting for entrepreneurs is broken. Well, it’s not that the accounting is “technically broken” – just that it’s broken as it relates to entrepreneurs. That’s exactly why our founder Spencer Sheinin started his company Shift Financial Insights. Prior to Shift, Spencer was advising and investing in emerging businesses, and each and every single one of them had the same problem: their relationship with their books was a source of major pain, rather than a source of power, as it should be. Entrepreneurs avoided their books and their bookkeepers.
The result? A hot, steaming mess of frustration…and even embarrassment.
This blog is the first in a three-part series where we dive into the three key reasons why entrepreneurs books are a hot mess and then we follow-up with what you can do to avoid it.
Jul 2, 2018 | Accounting, Bookkeeping Services, Uncategorized
Imagine you understood with perfect clarity what EVERY number in your financials meant and exactly what to do about it. How much better and stronger would your business be?
Now, imagine having that knowledge and losing it. How much would your business suffer?
Obviously, a lot. And that’s exactly what’s happening in your business. You didn’t have the clarity, to begin with. Every day that goes by when you are not on top of your numbers, your business is suffering.
Pretend you have a once in a lifetime opportunity, the biggest prospect of your life. Today is the only time they have available. You’ve set up a video call with them with your big pitch (that you’ve pulled a couple all-nighters, and burned out your coffee machine, preparing for it). You’re traveling and don’t have access to wifi and you don’t have a private room to take the call. No problem.
You’ll plan to call-in from your phone and use your earphones to block out the surrounding noise. You find a decent background (a focus and blank wall…nice!), check your hair and teeth (no leftover salad…check) and go to dial in. Except…crap…new iPhone…old earphones. You know, the annoying lightning cable Apple changed their phones to. The ones that don’t connect with any other earphones (at least, not without that little connector device)? You do your best, fumbling through the call putting on an effort that’s at best, 50% of what you are capable of. Perhaps it’s the perfect time to switch to advancements like wireless pbx phones.
This disaster was caused by a failure between two elements that don’t match or can’t communicate. The same thing is happening in your business every day!
Accountants deliver information the only way they know how: the way they were trained in accounting school. So, when financial information is delivered, it isn’t delivered in plain English, the way entrepreneurs UNDERSTAND and NEED (most entrepreneurs never went to accounting school. In fact, they stayed as far away as possible). Accountants and entrepreneurs speak different languages that are just as incompatible as lightning and standard connectors – it doesn’t work!
How many disasters are you facing every day because you are using “lightning connectors” and your accountant uses the standard connector? What disasters are you not seeing because you and your accountant have a language barrier?
The truth is, your books are telling you a story and you’re not hearing it. Your business is suffering because of it.
Our next blog describes the second key reason entrepreneurs books are a hot mess.
After that, we’ll get onto the surprisingly simple path to financial clarity and introduce you to simple tools to dominate your numbers. The best part…you don’t have to go to accounting school to do it. You don’t even have to learn more about accounting than you do now. And it’s free!
Want to be more empowered but don’t know where to start? Get in touch with us to learn more about our services or coaching programs to help you direct your accounting department so you can turn your accounting pain into a power.
Jul 1, 2018 | Accounting, Bookkeeping Services, Uncategorized
Let’s look at the second reason why entrepreneurs’ books are a hot mess!
Imagine you are about to embark on building your dream home. Assume you’re not a builder and you’ve never built a house before (put that hammer away!). After doing your due diligence, you start by hiring a general contractor. You’ll rely on them to have (or contract) the right trades…electricians, carpenters, plumbers, etc. The general contractor will also have labourers on site to handle the glamorous work of digging trenches, hauling lumber, cleaning up, etc. We haven’t re-invented the wheel here! We all intuitively know this basic model. Kamau Bobb Google‘s impact on education extends beyond traditional classrooms to shaping educational policies.
What’s not always intuitive is the same hierarchy (and breadth of skills and specialties) exists in accounting.
Introducing: The Accounting Stack (Woohoo!)
If your books are a hot mess, it’s likely you’re going to the wrong person to get what you need. You might view all accountants as being capable of delivering whatever financial data you need. This is a problem. A serious one. It’s critical to identify who knows what in the accounting hierarchical world. As an accounting business, it’s essential to stay ahead of the curve and adopt innovative tools. Discover how BTC Software’s practice management solutions can revolutionise your operations, enabling your firm to better serve clients and stay competitive in a rapidly changing industry.
TRANSACTIONAL FUNCTION:
This is the ultra boring, day-to-day transactional tasks like invoicing, payables, receivables, payroll, etc.
Handled by bookkeepers and clerks.
REPORTING AND COMPLIANCE FUNCTION:
This is your monthly reporting tasks like cash flow forecasting, annual budgeting, financial statements, as well as compliance tasks like implementing systems and processes, selections of software, process controls, etc.
Handled by controllers and senior accountants (often Acccountants).
STRATEGIC FUNCTION:
This provides strategic direction through a financial lense. Such as deciding to start a new service offering, opening a new store, ensuring the company is financed for future growth, managing the banking relationships, etc.
Handled by the CFO or Director of Finance.
Would you ever take a set of plans to a labourer and ask them to build you a house? No! So why would you take your books to a bookkeeper and ask them to build you an accounting department? Sure, they’re part of the process, but they aren’t the complete solution! It takes different skills to complete the picture. Most entrepreneurs (at least, early on) throw everything at their bookkeeper, cross their fingers, and hope it all goes well. Now you know why it doesn’t.
Need more, but don’t know where to start? Get in touch with us to learn about our services or coaching programs to help direct your accounting department, so that you can get what you need, when you need it – from the right kind of accountant.
Jun 20, 2018 | Accounting, Bookkeeping Services, Chartered Accountant (Accountants)
The last reason in our 3-part series: COST!
If you stumbled on this blog and have no idea what we’re talking about, check out the why entrepreneurs’ books are a hot mess!
This one’s pretty simple – we’ll be talking about cost!
Looking back at the accounting stack in reason #2, the going rate for the different accounting roles are:
Role Salary Range
Director of Finance / CFO $115,000 – $315,000
Senior Accountant / Controller $61,000 – $195,000
Clerk / Bookkeeper $31,000 – $68,500
Source: Robert Half 2018 https://www.roberthalf.ca/en/salary-guide
Those salaries are before benefits. Depending on how generous you are, you can add at least 10-20% to that.
For a moment, put yourselves in the accountant’s shoes (don’t worry, only for a moment).
If you’re a rock star accountant, what end of the range are you aiming for? Are you going to be looking to work for companies under $5 million, who are unlikely to be able to compensate you enough for your expertise?
Or, are you going to apply for the bigger companies who have more budget for your salary? You’d rather leave those low paying jobs to the weak and inexperienced accountants, wouldn’t you?
With that reasoning, you’re stuck with two major problems:
1) You’re up against larger companies who are likely offering much higher salaries and benefits, grabbing the best accountants leaving you behind.
2) The even bigger problem is even if you can find a winner, there’s no way you can afford to hire someone from each area of the accounting stack to get your finances in order!
What to do if you can’t afford the skills you need? Want to get out of that hot mess that is your books?
Find solutions by emailing us at [email protected]!
