There are a lot of great bookkeepers out there, but there are also a lot of really bad bookkeepers. We have a lot of different sources of obtaining new bookkeeping clients. One of them is through bad bookkeepers. More often than not when a new prospect contacts us it is because they are not happy with their current bookkeeper or bookkeeping service. Is your bookkeeper good at what they do? Here is how to find out.
Can your bookkeeper answer your questions and provide you with the information you need to make key business decisions?
When you ask your bookkeeper a question do they stare at you blankly? If they don't know the information off the top of their head can they extract it quickly from QuickBooks or your accounting software? If you are constantly waiting on reports or answers to your financial questions then you may have a bad bookkeeper.
Is your bookkeeping system getting updated in a timely manner?
How often is your bookkeeping being updated? Can you see your cash flow situation? Not only your cash on hand but where your cash flow situation will be a week from now. Your bank account should be being reconciled on a weekly or monthly basis at minimum. It is really the only way to know you are looking at accurate financials.
Are you constantly finding mistakes in your bookkeeping?
If you ask questions of your bookkeeper that lead to changes due to mistakes on their end then you might need to change things up. Another way to find out if your bookkeeping has a lot of mistakes is to ask your CPA. If your CPA is not getting the bookkeeping in an organized manner or has to make a lot of changes then that is probably due to bookkeeping mistakes.
Then again is it your fault?
You are pinning all the blame on your bookkeeper but are you at fault for some of the bookkeeping issues? Does your bookkeeper constantly have to ask you for information? Do they have to ask more than once? Have you set your bookkeeping expectations from the beginning? Are you communicating effectively with your bookkeeper?
It's true there are both good and bad bookkeepers out there. Some may be wonderful bookkeepers but just not a good fit for you or your business. Some people just don't work well together. In general if you are not happy with your bookkeeper or the results they are delivering maybe its time to change things up.