Small businesses are more susceptible to fraud considering the lack of internal controls processes implemented. Considering that bookkeeping deals with the most important asset of all, your money, you should be very cautious when choosing who will manage it for you.
Unfortunately, many small to medium business owners feel the lack of trust or thereof in bookkeepers who do not know much about finances. Tax preparers have been disguising themselves as bookkeepers for decades, so do not let this happen to you. The most qualified bookkeepers have qualifications that ensure competency in the fields of accounting and finance. If your bookkeeper can’t explain the Sarbanes-Oxley Act to you off of the top of their head, you should fire him/her asap.
A great bookkeeper can serve as an incredible asset to your company and do much more than help you pay taxes. If your current accountant only serves as a tax preparer, bring someone in with a wider range of knowledge and they will prove to be much more valuable to your business. Here’s a few key points to remember when considering a new bookkeeper.
- You Get Better Advice Elsewhere
Subject matter experts (SMEs) are always willing to share their wealth of knowledge on a particular topic and educate others. If you have to suggest new ideas to your bookkeeper or accountant, he/she is obviously winging it. A good sign is when the owner brings up suggestions and his bookkeeper says, “that’s a Great idea” or “How do you know about that”?
- Tax Returns Are Filed At The Last Minute
One of the most intricate parts of providing full-service bookkeeping is generating quarterly financial statements. This ensures that your financial statements are up do date, preventing last minute headaches that come along with tax time.
- You Barely Speak With Your Bookkeeper
Your bookkeeper is responsible for providing corresponding documents analyzing your finances at least once a month, to prevent any risk of failure and keep you in congruency with your account. Resistance to speak with you is a clear cut sign of procrastination on behalf of your bookkeeper; returning phone calls on time and getting back with customers is the way of professionals. You shouldn’t have to be in the dark when it comes to your business’s finances.
- They Don’t Make A Difference
If you don’t feel a sense of clarity in your finances within the first three months of hiring a new bookkeeper, they aren’t very good at their job. Your business needs to employ a bookkeeper that can help improve your business model by keeping track of what you’re bringing in and how much money is being spent. Let’s say you want to pitch to a lender; your bookkeeper should be able to provide current financial statements to satisfy the lender and put your company in serious contention for a business loan.
- Your Payroll Is Late
Timely and accurate payroll seems to be a no-brainer in business, but surprisingly this is a continuous struggle for many small to medium sized entities. If you’re performing all of the day-to-day duties yourself, it may be times when you have to work extensive hours for a special client and forget to run payroll for your employee(s). Hiring an experienced, reliable bookkeeper can relieve business owners of those increasingly daunting tasks that come with being an entrepreneur.
Behind every great business is an amazing bookkeeper. Optimize your business by hiring a trusted individual that allows your company the luxury of operating with efficiency. Your customers will certainly appreciate the simple fact that you have more time to tend to their needs, leaving your bookkeeper to handle payroll, financial reporting, invoicing and expense management.
Thank you for reading thus far, we hope that you have gained some insight on what makes a good bookkeeper and what to expect when outsourcing your financial management. For more amazing tips and tricks, and more about our company’s services visit us online!
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