Are you at odds with your bookkeeper? Are they giving you the information you need to run your business? If you’re worried that your bookkeeper isn’t doing their job properly, watch out for these signs:
- Late Reports. Are you always getting your weekly and monthly reports late? Investigate the reason for persistent tardiness. If your bookkeeper is overwhelmed, the financial reports might not be the only thing falling by the wayside! Be sure to give your bookkeeper specific deliverables – a Profit-&-Loss Statement and an Accounts Receivable Aging by the 5th of each month – and follow-up if your expectations aren’t met.
- Errors. Does your tax preparer or banker find errors in your bookkeeping? Not only does this mean that your monthly reports aren’t right, but it also means that you’re spending too much money to have your CPA or tax preparer fix the bookkeeping mistakes!
- Confusing Information. You should be able to review your financial reports and understand them. If you find your financials confusing or they just look wrong, then it’s time to address the situation fast. These reports are meant to help you run your business!
- NSF Fees, Reconciliation Discrepancies and “Adjustments.” These are all signs that your books are being handled poorly. Your accounts should be reconciled cleanly, without any “adjustments” made to balance. You shouldn’t be bouncing checks in your business and one of your bookkeeper’s jobs is to make sure that bad checks aren’t being written!
- Finger Pointing. If your bookkeeper is always trying to divert blame onto others or is not working well with your team, then communication will suffer. Not only should your bookkeeper be doing a fabulous job, but they should take responsibility for problems or mistakes in their work.
You have a lot on your plate as a business owner. Worrying about your bookkeeper will keep you from focusing on the business development and billable hours that you need to grow your business. If you’re not sure whether your bookkeeper’s work is up to par, then have your tax preparer or CPA review the books …it’s money well spent!
And if it’s time to replace your bookkeeper, hire a pro! A Virtual Bookkeeper from Greenleaf Accounting can help you lay the groundwork for many profitable years to come.
Deb Howard Greenleaf, EA, CEO and Principal, of Greenleaf Accounting Services provides virtual accounting and bookkeeping services and specializes in financial management to consultants, coaches, solo professionals, and other small business owners across the US. Deb is an Enrolled Agent (EA)—an IRS-licensed tax professional—and specializes in small businesses and entrepreneurs filing Schedule C or as an LLC. As an Advanced Certified QuickBooks ProAdvisor, Deb spends her day in QuickBooks Online and specializes in providing QBO support.