You should hire a bookkeeper as soon as you start your business. This way you’ll avoid mistakes from the beginning and reduce headaches. Depending on your needs our bookkeepers can complete a full year's bookkeeping in as little as 3 hours time. If that's all it takes, can you do it in less time?
If you own a corporation it’s recommended that you hire a professional bookkeeper. Bookkeeping needs to use double journal-entry accounting to ensure that the Trial Balance is accurate. As a privately-held corporation, whether you have one shareholder or fifty shareholders, the accountability, accuracy and compliance needs to be the same.
A bookkeeper puts together a complete database of your business’ income and expense for your fiscal year (or calendar year). An accountant takes the bookkeeping data and forms the reporting necessary for the tax completion. The danger here is that the work of the bookkeeper directly influences the work of the accountant. If the bookkeeping reports are in error - the accounting reports will be in error, too. The importance of using a first-rate bookkeeper is key to your business’ success.
Bookkeeping is relatively inexpensive and is crucial to your business success. It is important to stay up-to-date with income and expense reporting, so you can make the proper decisions sooner to reduce losses that may be preventable. Trades especially are vulnerable in this area as they perceive great compensation for the project but underestimate the true value of labour and materials required. Find a bookkeeper that will accept your receipts every two months and keep you profitable.
Treat these as two separate businesses with two distinct bookkeeping records. It is very important that each business has its own Business numbers and GST numbers as well. The business numbers cannot be shared, and each business requires its own unique business bank account.