What Services Should Your Bookkeeping Business Offer?

The term bookkeeper itself says much of what the job is – keeping books, recoding the inflow and outflow of money. As simplistic as this may be, there is a lot more complexity in just “keeping books” and there are a number of additional tasks many bookkeepers take on for their clients. One of the benefits of taking a bookkeeping program is learning about the various areas where a bookkeeper can expand their business. 

Here are five services a bookkeeper might provide:

1.     All bookkeeping courses online in Canada are going to teach the basics of bookkeeping and this is obviously the first and most important service that a bookkeeper provides. This is the “keeping books” part of things and it involves an understanding of basic accounting principles and practices and includes activities like recording transactions, creating financial statements, preparing year-end documentation and other elements. 

In today’s era where software-based accounting reins, most bookkeeping programs teach individuals how to do this foundational bookkeeping work through an accounting program such as Sage Accounting or Quickbooks. Regardless of the computerized method used, a bookkeeper must also understand how these principles apply outside of the software program in order to have a thorough understanding of how transactions and recording works. Therefore, bookkeeping programs must also include an understanding and application of manual bookkeeping methods.

Ideally, a bookkeeping program should also include a thorough look at how accounting applies to various types of businesses from service-based operations to manufacturing. Even though many bookkeepers choose to specialize and work only for clients in certain industries, it’s important to have a complete view of how accounting works in a range of organizations should their client base change, they wish to shift their focus or they take on client’s outside their usual base.

Post-secondary schools may offer bookkeeping courses online in Canada that are accredited by the Canadian Bookkeepers Association (CBA). This allows those who successfully complete their bookkeeping program to apply for membership with the CBA. 

2.     Part of doing bookkeeping is reviewing income and expenses and this will naturally lead to taxation and being able to prepare tax returns for a client. Not all bookkeepers do taxes while others specialize in it. Most bookkeeping courses online in Canada have a taxation component and if you are considering providing bookkeeping services, this is one aspect that makes you an important partner in a client’s business. Preparing a client’s business taxes requires a thorough understanding of tax law and regulations in order to know which deductions are available and where various exemptions exist.

If you are planning on offering taxation services to clients, keep in mind that this is one area where a constant desire to learn new things is essential as tax law and regulations change regularly. Bookkeepers must stay on top of all the changes to be useful to their clients. 

3.     If a business has employees, they will need help from their bookkeeper in doing payroll administration. This is far more than just paying the employees. There is also a need to understand federal and provincial legislation requirements. Because successful businesses are destined to grow, there is a chance that your bookkeeping client that is a solopreneur today may be an employer tomorrow. You’ll want to be able to continue to provide their bookkeeping services and that will require an understanding of the various payments that must be submitted by the employer to employees, government agencies and others such as WorkSafe. 

When a business considers they may have full-time, part-time, contract, permanent and freelance workers, it makes sense to have the assistance of a bookkeeper with a solid understanding of payroll to sort it all out. You’ll want to find a course that includes an overview of payment options, payroll law, employment standards, records of employment and other information and documentation required in the processing of payroll. Interestingly, there is also a tax element to payroll in that bookkeeping courses online in Canada that teach payroll will include an understanding of T4 preparation. 

4.     If a business is straight cash sales it makes things easier from an accounts receivable perspective, but many businesses offer sale of goods and services on terms and managing the receivables is a job for a bookkeeper. There are many different elements to this task in that receivables must be tracked and followed up on. Statements will need to be created to update those on both sides of the transaction. 

Similarly, a bookkeeper may also need to help manage accounts payable because their client could be purchasing goods and services on terms for the business. Your clients expect a bookkeeper to keep track of when payment is due and to pay it when it is of the most benefit to the organization. This may mean payment at times that provide a discount or it could mean waiting until the last minute before penalties are incurred. It’s important to manage the process well in order to maintain the important supplier relationships that keep a business running. 

5.     As a business grows and changes a bookkeeper is able to provide input into some of the most important decisions. A well-educated bookkeeper can advise on the best accounting software to use, set up a business in that software and use it to create reports specific to the business. For example, when a business is considering whether to upgrade a delivery vehicle, their accountant can help determine the short and long-term costs and benefits of that purchase. 

When there is an economic downturn, rather than cutting marketing expenditures or laying employees off, a bookkeeper may be able to find ways to trim other expenses that will have a smaller impact on the operation. Alternatively, perhaps it’s time for the business to expand and a bookkeeper can look to past transactions and analyze trends in order to determine if now is the right time and what kind of investment makes sense. 

Businesses of all sizes and industries need bookkeepers. In order to become a valued partner in those businesses, bookkeepers should consider offering more than the most fundamental services.