Hiring a bookkeeping system is one of the most important aspects of any business. Unfortunately, many companies’ bookkeeping ends when they pay your monthly invoice. But this is not the most effective method of accounting, and it may leave you open to potentially costly mistakes if you use a less-than-professional recordkeeper. In addition, numerous red flags indicate that your bookkeeper is not the right one for your needs. The following are warning signs that could mean you need someone new running the numbers for your business.
They are as follows:
Not responsive
A responsive virtual assistant is a huge asset to any business. It can be frustrating to send an email to your bookkeeper with a work-related request only to find it ignored and not answered for a longer time. The best part about a great bookkeeper is that they will respond appropriately, even if it requires sending an email and updating that they have received the email and will reply to you asap.
It’s also important to remember that the quality of communication isn’t just about how quickly you hear back from your bookkeeper but also about the content of what they have said in their response. A good bookkeeper should be able to communicate clearly and concisely so that you know what needs to be done next.
Not in time
It goes without a doubt that a professional will work way ahead of the work. They will understand the deadlines and work passionately to see that they can achieve them. If you are regularly facing the issue of your books becoming late, then you have to look for hiring a bookkeeper who is good with deadlines.
It may be because of the number of people working on it or other reasons. But it is best not to delay them and let them get done as soon as possible. The best thing about hiring a professional is knowing what needs to be done and how it should get done. You don’t have to sit with them and tell them what needs to be done; this leaves you time for other important matters in your office.
You will find that the quality of their work is great and exceeds all expectations that you might have had from them in the first place. That comes from the fact that they know what they are doing and how they should do it.
If there are any issues along the way, you can always speak up about them and ask for advice on how best to solve them.
Not knowing the basics well
If your current bookkeeper cannot understand the basic terms and terminology related to accounts, you need to find another one. Again, a virtual assistant is a great option for you.
What is accounting?
Accounting is the process of recording and summarizing financial information. It also involves identifying sources of revenue, expenses, assets, and liabilities.
What is bookkeeping?
Bookkeeping is a process of recording financial transactions in journals or ledgers. The transactions are recorded in chronological order so that each can be traced back to its source. Bookkeeping has been around since the 18th century, when merchants used it to track incoming and outgoing funds. In today’s world, most businesses use software programs such as Quickbooks Pro or FreshBooks to track their finances. However, they still have to rely on someone who understands how these programs work to ensure everything stays organized properly.
Not sharing timely reports
If you have a bookkeeper who is not generating the financial reports on time to understand the company’s health clearly, you have to look for another better option. On the other hand, if you have a bookkeeper working as per timeline and generating the report, you do not have to look for anyone else.
The most important thing is that your bookkeeper should be available on time; otherwise, it will hamper your company’s business operations. It is not just about financial reports but managing inventory and paying bills on time.
If your bookkeeper is not doing it, then they might be handling some other work at this time, which will also affect your business operations and growth.
To manage all these things effectively, you need to find someone who can handle all these tasks without any hassle so that your operations continue without any problem.
Hide and seek
If you are a boss and have employees, then it is your right to know how the books are doing for the duration of time. If the books are correctly presented to you, then you are benefitted. Another way round, if the books are having issues, you could have a big problem.
The same goes for the employee who’s working for years but never bothered about how things were going. When it comes to leaving that job, they would be asked by their new employer to prepare some financial statements. They will be expected to show them how the business is doing from their point of view. If this person does not know anything about bookkeeping or financial statements preparation, he will probably lose his new job because of this basic ignorance.
The best way forward for any worker is to learn about bookkeeping and prepare financial statements whenever necessary.
Questioning the work
If you are the boss, you must keep asking the bookkeeper questions about the work they have done. Unfortunately, the bookkeeper makes several mistakes, and you are required to ask the questions and not receive the right response to these questions. Then it will be the right time to look for a new bookkeeper.
If you have any questions about your business accounting, then it is time to hire a new bookkeeper who is going to be able to answer all of them. The best way to find a good bookkeeper is by talking with people who know about these things or looking at their website to see what kind of services they offer.
Conclusion
As a business owner, you have much to do daily. You must manage your employees and your day-to-day operations and maintain your reputation as an expert in your field. Do not let the bookkeeping fall by the wayside. Hiring a bookkeeping service can help you stay on top of business without having to spend hundreds of hours tracking down receipts and balancing books each month.