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Minimize Financial Risk with a Bookkeeper

Some amount of risk is inevitable, but a bookkeeper can help manage it. It is inherent with the decision to start your own business that you accept some amount of risk. As a business owner, the responsibility falls on you to make sure that all of your activities and financial decisions are conducted in such a way that risk is minimized. When you choose to work with a bookkeeper who has over twenty years of experience in the industry, such as Valley Business Centre, you are building a firewall against some of the potential risks a business can encounter.

In the following article, I will discuss four easy targets for vulnerabilities when operating a business and how you, as a business owner, can use a bookkeeper to protect yourself. Creating protections against these vulnerabilities is not only essential, but the right thing to do if you're a business owner.

🎯 - 1) Compliance Failure

The first target I will discuss is the failure to properly comply with regulations within your industry. For example, are you sure that your company is properly filing all necessary documents? It is important to make sure that all the essential documents that need to be kept on hand are readily available in the event of an audit. Examples of these documents include receipts, employment records, and some financial reports.

If an audit is performed, not having these things in order could result in substantial financial risk for your business through the introduction of fines. A bookkeeper can eliminate these issues for a business by providing services to handle all of these things. They can implement a system for storing documents, update and correct issues with employment records, and produce financial reports as they are required.

🎯 - 2) Fraudulent Record Keeping

Fraud is one of the largest areas that a business can be vulnerable. This is because fraud can occur not only from malicious intent but from negligence also. Ignorance will not be viewed as an excuse if errors are discovered in the way your business has recorded its transactions and expenditures. The results of this fraudulent activity could be fines, having your business shut down, or even imprisonment.

With so many rules and regulations that need to be adhered to when keeping the books for a business, why waste time learning obscure reporting rules when you should be focusing on running your business? Employing a professional bookkeeper allows a business owner to transfer the responsibility over to the bookkeeper and entrusts them with properly recording transactions.

🎯 - 3) Regulatory Blunders

For a business to function, there are certain regulatory duties that must be taken care of to avoid financial risk. One example of these duties is taking care of workers compensation payments. It is important that these claims are made accurately in addition to being submitted on time. A common issue would be a business’s failure to submit the proper documents by the established deadline.

When a business chooses to partner with a bookkeeper like Valley Business Centre, they can lean on the experience they have in dealing with WCB to make sure that everything is done on time and correctly. This accuracy and on-time remittal will lead to a minimized risk of fines and penalties from improper reporting. Sometimes WCB issues can become quite complex, and it's good to have a bookkeeper on your side to help stay safe.

🎯 - 4) Payroll Discrepancies

Payroll discrepancies are an area where a business can be blindsided by financial problems. Failure to handle deductions properly is one specific area where a business can easily be caught off guard. To be able to handle deductions properly, the employer must know what to deduct and how much deductions to make. If the wrong number is used, then all parties involved could face the consequences. Heavy fines could be imposed on the business, and the employee could find themselves liable for the portion of unpaid taxes. It's not worth risking fines and the loss of an employee by saving a little money and doing payroll yourself.

A bookkeeper who can perform payroll services in addition to the bookkeeping is able to keep a close eye on potential payroll issues. Payroll is likely the biggest recurring expense that your business will make, so why not trust it in the hands of a professional who knows how the system works. Valley Business Centre can provide expertise in payroll that will eliminate any worries that may pop into your head if you try to do payroll inhouse.

🎯 - 5) Poor Management of Accounts Receivable

Getting lots of sales means that there is the potential for a lot of people to owe your business money. It is a great feeling when the sales are rolling in, and you feel like you have finally made it. Getting paid for those sales is not always as straight forward as it might seem, however. Sometimes waiting for money from sales is a significant financial risk. Having a good grasp on debts owed is essential to maintaining a healthy cashflow.

By using a bookkeeper who monitors accounts, they can offer assistance on any debts that are red flags for your business. They can also help by generating and sending out invoices to these debtors so that your business can get the money it's owed to keep on functioning in a full capacity. That way, your business can generate sales confidently, knowing they are going to be paid for goods or services rendered.

Use ValleyBusiness Center to Protect Your Business Today

Using the payroll and bookkeeping services of ValleyBusiness Centre, you can enlist the help of a veteran in the industry with over twenty years of experience serving the Vancouver and British Colombia area. They can offer you protection from common financial risks that your business is exposed to,and prepare your business for its expansion going into the future. If you would like to know more about how they can assist your business, contact them today for a free consultation.

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