Three Signs It’s Time to Fire Your Bookkeeper
In the world of small business, a reliable bookkeeper is worth their weight in gold. Yet, according to On Pay, nearly a quarter of accounting clients are looking to kick their bookkeeper to the curb. Should you be one of those clients?
Bookkeepers manage your financial records, ensure compliance with tax laws, and provide crucial insights that help your business thrive. However, not all bookkeepers are created equal. Sometimes, it becomes necessary to part ways with a bookkeeper who is no longer meeting your needs. Here are three clear indications that it’s time to find a better bookkeeping firm!
1. Consistent Errors and Discrepancies
No accountant is ever perfect, but accuracy is paramount in bookkeeping. Mistakes in financial records can lead to bad decision-making, lengthy IRS audits, and financial penalties. Noticing an error is one thing, but recurring errors in your financial statements, invoices, or tax filings, even after you’ve addressed it with your bookkeeper is a major red flag. Even small mistakes done over and over again will snowball into significant problems over the course of years. Imagine a particular expense entered wrong, month after month, year after year, will become a headache to fix later.
A competent bookkeeper should not only maintain accurate records but also have a system in place to double-check their work. If your bookkeeper’s errors are frequent and they seem indifferent to the repercussions, it’s time to consider finding someone more meticulous and reliable. Our firm recommends reconciliation every month and having a second pair of eyes review entries on a regular basis.
2. Lack of Communication and Responsiveness
Effective communication is crucial in any professional relationship, and bookkeeping is no exception. Your bookkeeper should be available to answer your questions, provide updates, and discuss any concerns you might have about your finances. If they are frequently unresponsive, take too long to reply, or fail to keep you informed about important financial matters, it’s a sign that your needs are not their priority.
Additionally, a good bookkeeper should proactively communicate potential issues and offer solutions, rather than leaving you in the dark. Poor communication can lead to misunderstandings, missed deadlines, and financial mismanagement. If you find yourself constantly chasing your bookkeeper for information or clarification, it may be time to look for someone more communicative and engaged.
We utilize the 24 hour rule; any request should get a response in 24 hours even if more time is needed to solve a problem.
3. Inability to Adapt and Improve
The business landscape is constantly evolving, and so too are the tools and technologies available for managing finances. A great bookkeeper should stay up-to-date with the latest industry developments and be open to adopting new software and methodologies that can enhance their efficiency and accuracy.
If your bookkeeper is resistant to change, unwilling to learn new systems, or fails to bring fresh insights into your financial management, it’s a clear indication they might not be keeping pace with industry standards. For instance, if they are still relying on outdated manual processes when modern, automated solutions are available, they are likely holding your business back.
Furthermore, a bookkeeper who is unwilling to engage in professional development or continue their education may not be providing the best service possible. Your business deserves someone who is committed to continual improvement and capable of leveraging new tools to benefit your financial operations.
Why you should try Friendly Neighborhood Bookkeeping
These bookkeeper problems are addressed by our firm belief in our three pillars; Accuracy, Approachability, and Affordability. Friendly Neighborhood Bookkeeping prides itself on accurate, repeatable bookkeeping solutions. We are approachable and truly care about your business’ success, which is why it’s easy to get a hold of us. Finally, our team understands the importance of efficiency and customizing solutions so that everything works exactly how you want and need it.
You should reach out to us if this post sounds too familiar! We’d love to be a part of your success story.