How Do I know if My Bookkeeper is doing a Good Job?

07 Dec How Do I know if My Bookkeeper is doing a Good Job?

Posted at 06:00h in

Bookkeeping & Accounting

by Becky Brown  •  0 Comments

how-do-i-know-if-my.jpgThere are some situations in which it is easy to determine if someone you have hired is doing a good job. If your car stops working you can conclude that the mechanic did a good job once the car is up and running again. When a dentist fixes a tooth that was causing you pain, relief from that pain is likely the only evidence you need to feel like it was a job well done. But, sometimes it is more difficult to determine if someone you have hired is doing a good job. For example, how do you know if your bookkeeper is doing a good job? Accurate bookkeeping is an important part of running your business so you need to do more than simply hope or assume that you have a high quality bookkeeper.

  • Hire someone with a reputation for doing good work

The best time to try and determine if a bookkeeper does good work is before you hire them. If you are at this stage of the process it is important that you take your time and do thorough research on any accountant or agency you are considering. Talk with several different people on the phone and set up a time to meet with anyone you are seriously considering. Get references of current clients from the people you are considering and call them. Ask the references about their experience and satisfaction level with the bookkeeper or accounting firm you are thinking about hiring.

  • Develop a good working relationship

You must feel comfortable and work well with the person that handles your company’s finances in order to believe that he or she is doing a good job. You still need to stay involved with the finances of your business even after you hire someone to handle the day-to-day responsibilities. You must be able to ask questions and get clarification anytime you do not understand something related to the finances of your business.

  • Assess your needs

There is no way to determine if your bookkeeper is doing a good job without first determining what you need from your bookkeeper. The accounting needs of a startup with one employee are much different than those of a larger company. Do you want someone to work on your bookkeeping needs daily or only occasionally? How often do you want to see financial reports? What types of financial reports do you want to see? Your opinion of your bookkeeper will be significantly impacted by how well he or she meets your needs and expectations. But, you must work with your bookkeeper to establish what those needs and expectations are and to develop a plan.

  • Regularly look over your financial statements

Part of being involved in the accounting process of your business is looking over your financial statements. Your bookkeeper can compile your financial information and generate several different types of reports, depending on your needs. Take the time to look over and discuss these financial statements with your bookkeeper on a regular basis. Talk through any questions or concerns you have that result from looking over the statements. If something seems off, point it out and get clarity. This not only helps you determine if your bookkeeper is doing a good job but it also helps you stay engaged in the process of understanding the financial status of your business.

 

Topics: Bookkeeping & Accounting