- December 1, 2017
- Posted by: admin
- Category: bookkeeping
Professional bookkeepers and accountants are committed to helping you achieve your business goals. The position of a bookkeeper is essential for the success of your firm. You need to provide them the most significant details of your business. So obviously you have to look for reputable and trustworthy bookkeeping services. You must hire a professional bookkeepers, with the right skills, someone whom you can trust to maintain your accounts. If you hire the wrong person, you could end up with a big mess in your hands.
Often business owners believe that once you have hired a professional; leave the work to them, especially finances. But this thinking is wrong. Since finance is the base of your business, you should double-check their work, even if you have hired a professional.
Small businesses are more at risk for employee fraud than large businesses, as they do not have strong internal controls and tend to trust their employees. Small business owners typically focus on the core business and do not have the time, to oversee the work of bookkeeping function.
Business owners are often shocked to discover that the person they trusted implicitly could perpetrate a crime against the business.
Signs to look out for:
CPAs, enrolled agents, tax attorneys, and certified bookkeepers are bound by a code of professional ethics that requires them to safeguard their clients’ identity and sensitive financial information from others. If they openly discuss other clients with you, they might be discussing about you with other clients as well.
A reputable and trustworthy accountant would never offer to fudge numbers on your returns or any other financial documents. So if your bookkeeper offers to fudge or is willing to lie, they are putting you at risk. Further, if they are willing to lie on your behalf to others, you can bet they’d be willing to lie to you.
Your bookkeeper should make every effort to answer your questions and thoroughly explain the reports and documents they are preparing. If your bookkeeper pretends to know everything but can’t give you a straight answer, that could indicate they’re inadequately skilled in that area. Look out for these signs as, they may say a lot about your bookkeeper.
Vet your bookkeeper:
Sometimes business owners are so focused on other aspects of business that they hardly have time to check the finances. In such cases they have no other option than to trust the bookkeeper. It is important that all business owners have sound knowledge of their own business finances.
Log in to your accounting software to check activities and ensure everything is updated. Bookkeeping encourages the participation of business owners in the work they do.
See that your bookkeeper asks questions. If they do not, then they are guessing! Bookkeepers asks questions and supporting documents when they cannot understand the origin of a particular transaction. Review your income statements and balance sheet regularly and demand explanations. Schedule regular meetings with your bookkeeper to acquaint yourself with the bookkeeper’s work.
When you hire someone as a bookkeeper, you trust them with the most confidential business information. So hire a bookkeeper who has professional memberships and certifications, as well as is transparent and accountable for their work.