Not all bookkeepers are created equal

Not all bookkeepers are created equal…

Should you trust just any ordinary bookkeeper to do your books?

How often does your bookkeeper sit down with you to discuss your financial affairs? Is it weekly, monthly or perhaps quarterly? Does he/she have a solid understanding of accounting?

 

Here’s an idea…

Having spent many years assisting organisations, business owners and companies, I came to realise that not all bookkeepers are created equal.

I found that many entrepreneurs and business owners weren’t being provided with the best when it came to their bookkeeping needs. And I say this because, when the books and records finally get to us Accountants, we end up spending the first few days [sometimes more] fixing up mistakes made by the bookkeeper [thus costing the client more in fees].

So here’s an idea, why not get your books sorted by an Accountant, a qualified accountant who knows the accounting standards? More and more accounting firms nowadays are taking on the bookkeeping function as a value-added-service.

So speak to your accountant to see if they offer this service. Ask your accountant what their fees are and be open and honest with them about their fees.

If your accountant doesn’t offer these services ask them if they know a reputable bookkeeper that they can refer you to.

 

So what’s in a good bookkeeper?

Here at Entrepreneurs Accountant, we believe that a bookkeeper should posses the following traits/skills/qualities:

Accuracy – Manage all balance sheet accounts, all accounts, not just bank accounts. Reviews all work to guarantee accuracy.

Knowledgeable – A bookkeeper must at least have a sound understanding of accounting principles such as knowing their debits and credits and NOT to allocate transactions into retained earnings!! Knowing whether the item in questions is capital in nature and allocating it to the balance sheet NOT the profit and loss statement.

Reliable and up-to-date – Your bookkeeper should be fully aware of your business’ compliance needs such as when the business activity statements [BAS’] are due to be lodged. Reconcile your books for that quarter, complete and lodge your BAS well before the due date. The ATO won’t hesitate to issue a penalty notice for late lodgments.

Your bookkeeper should work closely with your Accountant to ensure that the year-end process is completed in a timely manner so that your Tax Return is lodged well before the due date.

Computer skills – Computer skills are a must these days! Your bookkeeper should be proficient in the accounting software that your business uses [i.e. Xero, MYOB, Intuit etc]. There’s no point in hiring someone that has no idea how to use the accounting software you use [this increases the likelihood of errors and omissions].

Other programs like word processors, spreadsheets, presentations, and database applications are used for better managing business operations.

Communication skills –Your bookkeeper should have great communication skills to be able to seek clarification in addition to explaining and providing relevant information when asked, and to avoid misunderstanding issues.

I’m sure that there are more traits that you can come up with but the above list should be a starting point for you to consider when making that decision to engage a bookkeeper.

 

A fresh approach to accounting…

For us here at Entrepreneurs Accountant, we strive to ensure that our clients answer with a definitive yes to the questions above.

We are more than just bookkeepers; we are your trusted advisor…

We show entrepreneurs and business owners how to track their expenses and manage their cash flow by using the best cloud based accounting software.

We talk to our clients regularly and review their performance on either a monthly or quarterly basis and we listen and provide solutions to better manage their business operations.

We do books, and we do them from as little as $97 per month…

So why not start 2015 with a fresh approach to accounting and bookkeeping with Entrepreneurs Accountant?

 

Charisse Russell [CA, BCom]

Director

Entrepreneur, mother, wife and business owner