A bookkeeper does an important task and may mean the difference between your business soaring to new heights or crashing down to irrelevance. They input and organise financial data that allows you to get an overview of your company’s finances. If you end up with poor bookkeeping, you will lose money and allocate resources ineffectively. These problems begin and end with a bad bookkeeper.

 

Here are the signs that indicate you need to replace your bookkeeper.

 

Late Response

Bookkeeping for small businesses is important, that’s why communication is a vital part of a professional and working relationship. Your bookkeeper must respond to your questions and demands for reports. One key indicator that you hired a bad one is they fail to reply on time. They take days to respond and if they do, they lack details or hide mistakes. If you see any of these red flags, fire your bookkeeper and look for another one. During the screening process, set expectations so that the firm you’re hiring knows what to do.

 

Behind Deadlines

Poor performing bookkeepers lack time management skills. They rush closing your accounting books when the deadline is about to lapse. One example would be that it’s already April and they have yet to reconcile and finish February and March bookkeeping. This scramble to the finish line may result in several errors that you might get penalties for. Late financial data also prevents business owners from making important decisions because they don’t have the information they need.

 

Poor Reporting

A bookkeeper needs to produce reports after bookkeeping. They should provide you with reconciled books and organised financial statements. These are important documents you need to get an overview of your company’s finances. These also help you allocate resources appropriately, plan for expansion or retrenching, and for marketing. A poor bookkeeper doesn’t provide helpful reports or simply has no idea how to make them.

 

Bounced Checks

You know you need to replace your bookkeeper when checks start to bounce. Your small business relies on reconciled and properly managed accounts. Your bookkeeper may have made several errors that led to a bounced check.

 

They Hide Your Books

Another red flag to look out for is that when your bookkeeper hides your accounting books. This may mean they made several mistakes or they could be stealing. Once they start doing this, ask to see your books. If you see errors and discover you’ve lost cash, look for a replacement.

 

Bookkeeping is an important task and having a trusted bookkeeper is a must. Screen candidates carefully, get recommendations and read reviews before hiring one. You can also consider virtual accountants to do the job for you. Check out our bookkeeping services for small business owners to learn more about what we offer.

 

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