Bookkeeping and accounting are critical components to running a successful business and achieving your personal goals. How you integrate these components into your business will depend on your personal situation and preferences, but keeping your books in order will help you understand how your business is performing. This will enable you to keep track of all required records.
Here are some commonly asked questions:
1. What does a bookkeeper do?
The role of a bookkeeper can vary quite a bit. Generally, it is the bookkeeper’s job to maintain accurate and timely financial records. In some cases, this means that the bookkeeper will take responsibility for the day-to-day tasks of maintaining the accounts payable and accounts receivable paying the bills and generating invoices A good bookkeeper can undertake a lot of the work that a qualified accountant often does.
2. What does an accountant do?
The fundamental tasks of accountants are to prepare financial records and prepare and file all required tax returns. They make sure the records are accurate and that taxes are paid properly and on time. There are many intricate laws and systems to understand in order to be ablet o perform this job to a high standard.
3. Why do I need to keep financial records?
It is the law. You have to keep records if any of the following apply:
You are carrying on a business in Canada
You are engaged in a commercial activity in Canada
You are responsible for collecting tax
You have to file a GST sales tax return.