You have an AMAZING bookkeeper that you adore. He or she is so good, that you’ve let go completely of that area of the business and put your head in the financial dark. Here’s the problem. Your bookkeeper may be the best, but they are human. Just like you and me they make…
I know right?
Okay go easy, because of the way your bookkeeper is built (I mean a crazy detail oriented person obsessed with number perfection that gets a slight high when those books are balanced), he or she does not intentionally mean to make mistakes. Like I said earlier they are human, sometimes mistakes happen.
You outsourced bookkeeping so you could have accurate reliable financial information. You want to know your cash flow and understand your profit versus loss. If you have a good bookkeeper then they want this for you too! No more burying your head in the financial dark!
Try implementing these strategies to help verify your bookkeepers work and get back in the know of your business' finances.
Login to your accounting software
Whether you are using Quickbooks Online or Xero, login on a regular basis (at least once a week) to check on activities. If your bookkeeper updates the books on Thursday, then login to your account on Friday. Do a quick look around to make sure everything has been posted and that there's not a long list of transactions that need to be handled.
If you and your bookkeeper do not meet regularly (at least monthly) then be sure to start. It is essential that you have a chance to ask questions and gain clarification on the finances. Likewise, it is essential for your bookkeeper to understand how your business operates, the business goals, and challenging areas you face. During your meetings review important financial reports, your income statement, and balance sheet. Be sure to ask your bookkeeper to explain these statements and reports to you. Ask questions till you completely understand where you business is financially.
Your bookkeeper needs to have receipts and invoices to make sure it is categorized properly. Do not skip this. Make it a habit to get those documents to your bookkeeper immediately. Your bookkeeper will have a preferred method that will work best for you and them. One method is an app that will auto-fetch the receipts and automatically provide them to your bookkeeper. Talk to your bookkeeper about the options available.
Be open to and encourage questions
If a bookkeeper is not asking questions then they are guessing. Do not mistake their questions for incompetence, if they are asking questions they’re doing their job. Receipts from what may seem like obvious purchases may not actually be what it seems. For example a purchase made at Chevron could be gas, meal, or something else. In order for this to be classified properly your bookkeeper needs to feel comfortable asking you questions.
It’s your business’ success, so even though your bookkeeper is amazing and on top of it, sometimes things happen. Trust me, your incredible bookkeeper wants your books to be perfect too; they will appreciate your proactivity and support to maintain accurate records.
On the flip side if your bookkeeper is adverse to you being involved with the finances and following any of these strategies; then it may be time to break up and find a bookkeeper that is more open to your involvement and working together.