Your bookkeeper is an integral part of your team. You need to have confidence in their abilities and trust that they are getting the job done correctly. The fact that you have hired a bookkeeper may indicate that this is an area of business that you are not used to dealing with yourself. If so, how can you tell if your bookkeepers are doing a good job, or if they know what they’re doing?
Your bookkeeper should help you increase your profits by advising you on appropriate strategies. It is also important for them to ensure that your business complies with all Canada Revenue Agency (CRA) regulations.
To find out if your bookkeeper is doing all he can to help your business succeed, here are some questions you should ask yourself pain:
Are you communicating in the same way?
Videoconferencing has become very popular today, especially since the pandemic began. They allow for a more personalized way of communication. Often, emails and text messages fail to convey context, which can lead to confusion and misunderstandings. With video conferencing, more subtle visual cues come into play, which can play an important role in communication.
If you seek this interaction but your bookkeeper is only contacting you via occasional email, your communication is not efficient, which may result in you not fully understanding what is going on in your business. You and your bookkeeper should agree on a method that will best keep you in touch.
Are they responsive?
There’s nothing worse than desperately needing information and advice, but having to wait a long time for your bookkeeper to respond. This can adversely affect your business, so why is it so? There are several reasons.
Your bookkeeper can be disorganized. They may forget deadlines or have a bad habit of procrastinating. In many cases, they do not have the appropriate practice management software. To make matters worse, if you are not one of their main customers, they may not prioritize your business.
Are they proactively making suggestions?
As part of your team, your bookkeeper should proactively identify potential problems and provide advice. That means asking questions and understanding what’s going on in your business. If they don’t, they won’t be actively involved in helping you become more successful. It might be time to look for a more interested newcomer.
Will they show you books?
If your bookkeeper is reluctant to show you their work or let anyone see the books, that should send a red flag. They may not be managing the books properly, or worse, they may be stealing from you.
With cloud accounting software, you should always have access to all your information and should be able to log in and view your files at any time. If you don’t have access and your bookkeeper is preventing you from getting it, it’s time to replace them.
Do you receive monthly reports?
Your bookkeeper should provide you with monthly reports. Your income statement (income statement) and balance sheet provide the vital information you need to make decisions about your company’s financial health and growth. If you don’t get these reports on time each month, your bookkeepers aren’t prioritizing you the way they should.
Have you reviewed their eligibility?
Unfortunately, many bookkeepers are inexperienced and sometimes lack the most basic knowledge needed to get the job done. Canada does not have a bookkeeping regulator and is not obligated to take a bookkeeping course before hosting a client, although many do for a variety of reasons, such as providing a certificate to a client. Failing to check your bookkeeper’s qualifications can end up being a costly mistake.
Did you get a notice from the CRA?
Perhaps more than anything else on this list, it’s a major sign that something is wrong. When you get a notice from the CRA, your accountant may be in trouble and you may be about to be audited. If so, it might be wise to have a tax attorney or accountant ready to help you. Having a reliable professional who can advise you through this process will be invaluable.
Your bookkeeper should be a motivated, dedicated member of your team and someone you can trust and rely on to help your business grow. If they don’t meet the above criteria, or you have any dissatisfaction, it may be time to look elsewhere for help.
