Some of the Legacy Advantage team: Bob Wang, David Nguyen, Anna Popova, (bottom row) Lorna Jones and Terry Gosal.
An investment in peace of mind
Legacy Advantage is a CPA firm that exclusively provides CPA-level bookkeeping. They empower their clients with peace of mind, clarity, and financial intelligence. Legacy Advantage comprises
a team of 15 professionals with two offices in Metro Vancouver.
Bob Wang, CPA, CA and president of Legacy Advantage, explains the value of having a CPA-level bookkeeper and how you can hire one:
How do I determine if I should hire a bookkeeper?
I had one client who had tried to save money by doing his own bookkeeping. He then had to go through a payroll audit and wound up owing much more than it would have cost had he sought professional help.
If you are saying these things to yourself, you should probably look at hiring a professional bookkeeper:
“My receipts are piling up; I’m feeling overwhelmed.”
“I don’t know who owes me money.”
“I have no idea how much money I made last month.”
“Am I doing payroll correctly?”
What are the advantages of a professional bookkeeping service?
A professional bookkeeper will provide peace of mind because you won’t have surprises. You can be reassured that all government agencies are paid, and that your books are correct. You will know exactly who you owe, and who owes you.
As well, a good bookkeeper will provide clarity. Many business owners see numbers and their brains just shut off. It’s up to the bookkeeper to paint the financial picture, using data such as ratios, KPIs and trends.
How do I hire the right bookkeeping service?
Let me just say that hiring a bookkeeper without a financial background is difficult. It’s like trying to play Fantasy Football when you don’t even know what a linebacker is. Here is what I look for:
First, just like with any hiring decision, ensure that there is a cultural fit, and you feel comfortable with him/her.
From there, you can ask questions that can assess their skill level, such as: “You made an error. You invoiced the customer, and when the customer paid us, you recorded it as a sale again. What’s the journal entry that fixes this problem?” (Answer: Dr. Sales Cr. A/R).
Or you could ask how they would handle a subledger that doesn’t make sense: “Items in A/P are already paid—and how can you fix this with a journal entry?” (Answer: Dr. A/P, Cr. Expense).
Lastly, ask them to explain to you the difference between a Balance Sheet, an Income Statement and a Cash-Flow Statement. If their explanation leaves you more confused,
then it means they don’t fully understand it themselves.
It’s always worthwhile to pay a CPA-level bookkeeper to have that peace of mind and know that you’re not going to have any surprises. Also, it’s incredibly powerful to have clarity for your business. You can measure yourself against last month, last year, or even the industry average. This insight alone is worth the cost. With these insights, you can not only optimize your operations, you can also identify when your next big opportunities lie.