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A well-maintained account speaks for your company. But maintaining books from scratch can be a tiring and expensive job. Tiring, if you, the owner, are doing it yourself. Expensive, if you have an in-house, full-time accounting department to do everything for you. In both cases, hiring bookkeeping services in Edmonton, Alberta can prove to be a beneficial choice. Outsourcing bookkeeping services can help you effectively manage all your financial transactions, be it bank reconciliation, sales tax filings, payroll processing, financial reporting, etc.
There are various things to keep in mind when outsourcing accounting services. To hire bookkeeping services in Edmonton, Alberta, the first thing you need to know is – does the service provider have the skills to do the job? Check for the qualification of the employees – do they have well-trained and experienced ICB, ACCA, CIMA, AAT-qualified personnel. Also, check for the software they are using to maintain the books.
Once you have an outsourced bookkeeping service hired, it becomes essential for integrating your existing accounting department with them. Here are tips on how to integrate outsourced bookkeeping with existing accounting services.
Having Cloud-Based Accounting Applications
Working in the cloud not only gives you access to your accounts anytime but also helps the outsourced bookkeeper to get the data needed for creating the books without wasting time in asking for various data they need form you.
For example, your accounting team puts an entry of a bill in the excel sheet that is on the cloud, the bookkeeping services can access that in no time and hence, include the entry in your books. All the other details are shared on an instant basis, aiding in a smooth and uninterrupted workflow.
Using Same Software as the Bookkeeper
Using the same software as the bookkeeping services in Edmonton, Alberta ensures that there will be no software compatibility error when you try to access the data. This helps prevent confusion between your accounting department and the bookkeepers. Also, you will be using the best and trusted software on the market.
Sharing of Financial Documents
There are various documents you need to share with the bookkeeping services in Edmonton Alberta. These include – bank and credit statements, payroll details, bills, receipts, tax documents and more. All these details, if shared on time, help the bookkeeper create your company’s books in an efficient and timely manner. One can share a file using various options available in the market, like – Google Drive, Dropbox, RapidShare, MediaFire and many others to add to the list. All kinds of formats can be shared using these applications, making it easier for both the company and the bookkeeper to access the files.
Once your bookkeeping services and your accounting department are integrated, the workflow becomes smooth and easy. The accounting department can now focus more on the other accounting work and help increase the productivity of your company. To learn more about how bookkeeping services in Edmonton, Alberta can benefit your company, get in touch with an all-in-one accounting solution company.
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Hiring an accountant for your business is no longer just about finding someone good at number-crunching and getting the maximum returns come tax-filing time. A good one can save you time and help your business grow; a bad one could cost you much needed money. Yet with thousands to choose from, it can be a daunting call to make. So when you have to choose an accountant for taxes, what are the questions every business owner should ask so as to make the most informed choice?
1) Get Referrals
Most of the experts say that the most of the businessmen get 90 per cent of their clients through word of mouth. Word of mouth plays a crucial role when you choose an accountant for your small business.
2) Check Online Reviews
Check if the business has an online precense and check for reviews. Platforms like Google+ allow customers to give reviews and add ratings.
3) Ask for the Price
Usually, the more complex your return is, the more likely it is that you will be charged by the hour. This can make it extremely difficult to price-shop accounting services but most will give you a ballpark figure and count on paying much more than that. That is why, price is another factor you should think about when you choose an accountant for taxes.
4) Check for the Compatibility
Compatibility is an important criteria when you choose an accountant for your small business. Is your accountant familiar with and able to work with your accounting system? Are you the type that expects your accountant to work with you online, possibly giving them access to your Quickbooks accounts, or are you more like that person that sends in the shoebox of receipts and a check register and asks them to work their magic?
5) Talk About Technology
Spreadsheets and other accounting paperwork are giving way to computers and digital filing. Also, asking the accountant how computer literate he or she is, whether the firm has a website, and if they use social networks such as Facebook and Twitter. A techno savvy accountant can be of great help when you choose an accountant for taxes.
6) Ask to be in the Loop
Some accountants use blogs and newsletters to keep.their clients informed. Try to choose an accountant for your small business who will provide you with information when he comes across an idea, concept, article, etc. that could be of interest or benefit to you. Additionally, you the accountant you respond to your emails, messages and phone calls quickly and not keep you waiting.
The above points are some guidelines which you can consider when you choose an accountant for your small business, but ATS Accounting can be of great help when you choose an accountant for taxes.
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Often growing small and medium businesses would notice they are facing difficulty in recording number of transactions they make. This could either be a result of rapid business growth, or the incapacity of the existing accountant to manage transactions. The solution might seem pretty simple, recruit more employees and expand your accounting team? This, however, does not account for the increased costs of a full-scale accounts department that would drastically affect productivity. There is another alternative, one that would delegate the accounting responsibilities to an accounting firm. Let us explore the merits of such a move.
Increased Focus on Business
Needless to say, you delegating responsibilities away from yourself to an accounting service in Alberta would give you the opportunity to focus on your core operations instead. All the time that you earlier spent going through each transaction, double-checking each transaction could better be used to set your long-awaited expansion plan in motion.
It surprises many that hiring an accounting firm is more cost-effective than a team of accountants. One accountant would not suffice in an eventuality that there is further business growth that drives their workload beyond the brink. The accounting firm that you hire would surely be cheaper than maintaining employees that have their own shortcomings.
Assured Quality of Services
The accounting firm that you choose to hire would provide quality services since this is their area of expertise. Gone are the days when an accounting error would be a major cause of concern. A professional accounting service in Alberta tasked with managing your accounts would be far more reliable than just a couple of employees (regardless of how hard they try).
Accounting firms provide their clients with consultancy services alongside their standard accounting services. The accounting service in Alberta that you hire would help your business with tips to reduce your tax burden, help your business with an expansion plan, and even keep you posted with relevant regulatory changes.
The frequencies with which companies are outsourcing their payroll responsibilities suggest payroll maintenance is a dreaded activity. An accounting firm always ensures that payroll management is done correctly and that payment is released on time.
Companies have a mixed relationship with their bookkeeping responsibilities. It is time-consuming, it needs attention to detail, it is mundane and it is a relatively low-skilled job, but at the same time it is so very important to make the correct entries and there is no margin for error since the consequences of making a mistake are unpredictable. It would be better for a specialist to handle your bookkeeping duties instead.
The finest accounting services in Alberta such as ATS Accounting offer comprehensive accounting, employee payroll, and bookkeeping solutions. ATS Accounting is a team of accountants that specialize in what they do, and seem suitable for handling your accounting duties.
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Depreciation is an accounting principle defined as the reduction of recorded cost of any tangible or fixed asset over a period in a systematic manner until the value of the asset decreases to zero or becomes negligible. A tangible asset can be anything that a business might utilize for their daily operations. Some of the common tangible or fixed assets include land, buildings, furniture, office equipment, machinery, etc. There are three methods of calculating depreciation over a period that all public accounting firms in Edmonton use - straight-line method, unit of production method and double-declining balance method. In this article, we will put light on the first method.
Straight-line depreciation, also known as the fixed or equal-installment depreciation, is the simplest and thus, the most common method used to calculate depreciation. Organizations estimate the residual or salvage value of the asset at the end of the period during which it will be used. The organizations then charge the same amount to depreciate each year over that period, until the value shown for the asset has reduced from the original purchase cost to the salvage value. As mentioned in the definition of depreciation, this residual or salvage value can be zero or negligible. Since depreciation value charged in the balance sheet each year is the same, the amount of the asset declines in a straight line in the sheet.
How to Calculate Straight Line Depreciation
The process that most public accounting firms in Edmonton follow to calculate the straight-line depreciation includes five steps. They are:
You buy a machine worth $50,000 which can be used for five years. At the end of the five years, the machine can be sold for $5,000. The annual depreciation can be calculated using the following formulae:
Depreciation Rate = (1/the useful life in years)*100 = ⅕*100 = 20%
Annual depreciation = (depreciation rate * difference of machine’s cost and salvage cost) = 20% * ($50,000 – $5,000) = $9,000
At the end of five years, the carrying value would be $9,000 on the balance sheet, the depreciation expense would be completed under the straight-line depreciation method.
This method is straightforward, easy to understand and simple to use. Straight-line depreciation is suitable for assets that operate uniformly and consistently over their useful years. Calculate the depreciation value of your business assets with the help of public accounting firms in Edmonton to make sure there aren’t any errors.
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The process of payroll can be defined as the distribution and calculation of salary, wages, and taxes for your employees. When you run a business, you are responsible for making timely salary payments to your employees. In Canada, the same is not possible without complying with the requirements of the Canada Revenue Agency (CRA). Also, by managing your payroll without the help of professional payroll services in Edmonton can cause you to make some mistake. The common payroll mistakes you may probably make include the following.
Misclassification of Employees
When you have a business and manage a payroll system, you are entitled to a payroll tax based on the number of employees you are paying wages or salaries. Often business owners make a mistake of classifying their employees as contractors instead of employees. Never make this mistake as the money paid to contractors is not taxable. This will eventually cost you more as you will have to pay the tax along with the penalty for misclassifying an employee as a contractor.
Forgetting Payroll Tax
One of the biggest mistakes is to completely forget about payroll taxes. When you have a payroll system in your business, you need to pay taxes for the same. Based on your federation, state and local taxes, there are different types of taxes which may apply to you. Make sure to find out which payroll taxes apply to your business and file them on time to avoid being penalized.
Not Planning Your Payroll Schedule
Every business has a different payroll schedule based on the owner’s convenience. You could be paying wages or salaries to your employees on a weekly, biweekly or monthly basis. This payroll schedule has a direct impact on your monetary operations, the profit earned and the cash flow. If you do not plan your payroll schedule and simply keep changing the duration in which you pay your employees, it will directly impact the capital you have at the end of the month. As a result, your budget planning for future investments in the business could be hindered.
Wrong Calculation of Overtime
With constant work and deadlines in business, overtimes are bound to happen. What you need to worry about as a business owner is to make sure you keep an eye on your employee’s overtime. According to The Fair Labor Standards Act (FLSA), it is mandatory for you to pay more for the overtime done by your employee. Making this overtime payment can be complex as you may have to follow the hourly wage laws of the state. To make it easy, find out beforehand how you plan to pay your employees for overtime.
Not Maintaining Payroll Records
Often experts emphasize the need to maintain proper record when running a business. Not just your accounting records, make sure to maintain your payroll records as well. The time of audit is when these records will be of great help. Remember for any company, maintaining at least three years of payroll records is a must.
Managing Payroll Alone
Having a business to run and simultaneously managing various aspects of a business can be too much for one person. With a lot to do alone, mistakes tend to happen. When dealing with the matters of your business accounting, finances, and payroll, you cannot afford such mistakes. Mistakes in your payroll could have a direct impact on your employees. To avoid this, make use of payroll services in Edmonton. Having a professional to work on your payroll system will reduce the chances of discrepancies.
When you have a well-planned payroll system, making timely salary payments to your employees becomes easy. So make sure to work on your payroll better with the help of the finest payroll services in Edmonton.