Posted on

Three Things Your Bookkeeper Shouldn’t Be Doing

Is Your Bookkeeper Making Stuff Up?

how-to-find-a-good-bookkeeper
Some bookkeepers may fudge their way through your books, but you can spot this before it ends up costing your business.

In a previous post we wrote about the three tell-tale signs that your bookkeeper isn’t paying attention and we thought we’d expand on this a little further by writing about three of the things your bookkeeper shouldn’t be doing — and what it means if they are.

 1. Your Bookkeeper Adds Adjustments to Reconciliations

The reconciliation is just a comparison between your records and those of the bank, so if you see reconciliation adjustments, something’s wrong. A bookkeeper should never make reconciliation adjustments, because it means they haven’t accounted for something properly and, instead of trying to find it, they gave up and made an adjustment instead. This is a classic example of why daily reconciliations are a good idea.

2. Vague Descriptions for Transactions

A good bookkeeper should know exactly what descriptions to use for each of your transactions, so if you see strange or vague ones like “opening balance??”, it’s a sign your bookkeeper doesn’t know what they’re doing. By the same token, if you see that the description field has been left blank or there are lots of journal entries, this should likewise raise a few red flags.

3. Lots of Old Transactions in Undeposited Funds Field

In most cloud-accounting software packages, such as QuickBooks, Xero and MYOB, there’s an undeposited funds account, where certain unreconciled transactions may sit. If you see lots of old transactions sitting there, it’s a sign your bookkeeper doesn’t understand what this feature is for or how to work with it, and as such, they’re manually recording deposits, which will overstate your income or sales.

If you’re seeing any of these things happening with your bookkeeping, you should speak to your bookkeeper straight away. It’s a clear sign that they don’t understand your accounting software properly, and you will pay for it later — usually when you go to see your accountant at tax time. Ensure your bookkeeper is qualified to work with the accounting package you’re using, and, ideally, that they have the equivalent of a Cert IV in Bookkeeping or higher.

 

Finding the Right Bookkeeper

finding the right bookkeeper for your businessBookkeepers seem to be ‘ten a penny’, but like in most professions, the really good people tend to stand out. A competent bookkeeper — someone who really listens, who understands the software and who prioritises your business — is crucial to a business of any size. A quality bookkeeper will help see to it that you’re not overpaying tax and meeting your payment obligations to staff, of course, but they can also help you put in place proper credit and debt management procedures and processes, something vitally overlooked by many small businesses (and yet most small businesses go insolvent as a result of cash flow problems — many of which stem from non-paying or late paying clients).

If you are after an efficient bookkeeper and you run a business in Meadow Springs, Parklands, Silver Sands, Mandura, Halls Head, Erskine, Dudley Park, Coodanup, Furnissdal or Barragup or Rockingham in WA, Deb Crompton is a tertiary-qualified bookkeeper with plenty of experience in bank reconciliations, invoicing, accounts receivable and payable and reporting; she also has the practical experience of having operated her own business in the past. You can see more details about Deb at her profile page or request a quote for a similarly experienced bookkeeper in your area. Our directory includes many degree qualified local bookkeepers, who are ready to start working with your business, in person or in the cloud.

Check out our National Bookkeeping website which has recently undergone a significant upgrade. We will keep feature more of our bookkeepers in forthcoming blogs — join now and we can feature YOU in our articles too.

Posted on 2 Comments

The 3 Tell-Tale Signs Your Bookkeeper Isn’t Paying Attention

Are You Getting the Best from Your Bookkeeper?

find-a-good-bookkeeper
You don’t need to be a whizz at bookkeeping to recognise when your bookkeeper isn’t prioritising your business.

MANY BUSINESS OWNERS LACK an in-depth knowledge of the bookkeeping process so they hire a bookkeeper to manage it for them.

But this can also make it hard to know whether the bookkeeper they’ve hired is paying close attention to their business’ books or not.

Ricky is a tertiary qualified bookkeepers from Blacktown in NSW, and he reveals there are three tell-tale signs your bookkeeper isn’t paying attention.

1. They’re always behind with your books

This is pretty common among a lot of bookkeepers, and it’s usually because they’re not motivated to do a good job. A good way to nip this in the bud, is to communicate key dates or timeframes with your bookkeeper.

If you need bills entered every Wednesday and a profit and loss statement on the fifth of each month, say so. That way you’ll know whether snoozing on the job or not.

2. You accountant’s bill is still high

If the bill from your accountant is still as high as it was when you didn’t have anyone managing your bookkeeping, it’s a good sign that your bookkeeper’s work isn’t up to standard. If your accounts are unorganised and unbalanced, it means your accountant will have to go through and review the information before they can do their job. That’s double handling, and you need to get to the bottom of it as soon as possible.

3. They don’t understand cash vs accrual

finding-the-best-bookkeeper
Is your bookkeeper puzzled? A good bookkeeper knows what they don’t know. If they’re unsure about cash accounting, they should let you know this.

Because many bookkeepers today, particularly contract and remote bookkeepers, got their start after cloud-accounting software became popular, lots of them don’t understand the difference between cash and accrual accounting systems simply because software like Xero and QuickBooks defaults to an accrual system.

Cash and accrual systems each have their own merits, depending on the size and complexity of the business. So it’s important that your bookkeeper knows the difference between and understand the benefits of each.

 

Does Your Business Need a GREAT Bookkeeper?

Tertiary-Qualified, Thoroughly-Vetted Bookkeeper Available in Sydney’s West

Like GPs, there’s usually a bookkeeper on every corner, but how do you find someone who you really trust and who genuinely has the best interests of your business at heart? Some business owners are unsure where to start when looking for a bookkeeper they can trust and rely on.

It’s also extremely concerning how many Australian small businesses suffer — to the point of insolvency — as a result of inadequate cash flow. A large portion of cash flow problems stem from credit and debt management and the systems business’ put in place to do this. This is something that can be handled by a competent and experienced bookkeeper. But it’s also about business owners understanding the need to make this a priority.

In finding the right bookkeeper, word of mouth can be helpful, but some people are reluctant to even do this for fear of losing a cherished and valuable resource. A great deal of trust is also placed in giving such sensitive financial information to bookkeepers and some people don’t like their bookkeeper doing work for other people they know.

If you’re looking for a reliable, thoroughly-vetted bookkeeper, capable of managing your daily/weekly bookkeeping and accounts, either remotely or in person, our National Bookkeeping directory features dozens of tertiary qualified bookkeepers available to assist you.

If you are located in Sydney’s western suburbs, Ricky from Blacktown, NSW, is a qualified bookkeeper with tertiary qualifications; he is also a registered BAS agent. Ricky has a great deal of experience in the day-to-day accounting functions of a small business, from invoicing, accounts receivable and payable, to payroll, financial analysis and reporting. Visit his profile page and request a quote for bookkeeping services.


find a local bookkeeper

Our National Bookkeeping website has recently undergone a significant upgrade so keep a look out for more stories about featured bookkeepers in forthcoming blogs. Join now and we can feature YOU in our articles too.