Will Your Bookkeeping Make or Break You?

As an accountant and business advisor over the last 20 years I am amazed at the number of times I am approached to fix a business’s bookkeeping.
Sometimes we are given books and records by a business owner many months after the work has been completed and we are shocked at the level of work performed.
The issue is that many business owners do not realise that their bookkeeper and bookkeeping is in fact one of the most important parts of their business. Yet many employ bookkeepers based on an hourly rate, with hardly any checks and rarely supervise the work. When a disaster data file comes to us we literally pull our hair out trying to fix it all. This usually results in additional work at additional cost leaving the business owner totally confused.
Over the last 20 years I have seen good businesses fail because of poor bookkeeping either by the client themselves or because the bookkeeper simply did not give the business owner all the information they need for the business to survive.
The information your bookkeeping records give you can literally make or break your business.images
For example I had a client who had a bookkeeper that processed the bookkeeping transactions and nothing else. They were not particularly great just adequate. The business had cashflow issues and needed an additional overdraft. The bookkeeper provided information to the bank and the bank realised there were errors in the bookkeeping and felt the business was not as good as shown (actually is was very viable). As a result the bank refused to increase borrowings and asked that the business repay the overdraft meaning the business was actually now in a worse position. The business was unable to get additional funding and was forced into administration and the business owner lost his business. The bookkeeper and bookkeeping records cost the business owner his business.
So how do you know if you have a good bookkeeper? Here are a few pointers:

1. Is you Bookkeeper just a bookkeeping number cruncher?

A good bookkeeper will be someone who not only process bookkeeping transactions but is constantly talking to you and your accountant. If they are not doing this you really have no idea what they are doing and probably are not interested in your business or do not understand your business. One of the biggest issues we have with bookkeepers is that they do not understand the business and have a tendency to just allocate expenses without knowing what the expense really is for. They rarely tell you information you need to make more money.

2. Are They Giving You Any Reports?

We find that clients that look at their figures once a year will on average earn less that those that look at the figures 4 times a year. A business owner that looks that their figures monthly will earn more than a business owner who looks at their figures 4 times a year. Obviously there are exceptions but this is generally the case. Experience has told us that concentrating on the figures will help you make more money. So how many times does your bookkeeper give you figures for sales, expenses, profit, trade debtors etc. If not very often, then the question I ask is ‘how much money are you leaving on the table?’

3. Are They Prepared to Put Their Money Where Their Mouth is?

Most bookkeepers are happy to take your money but are they confident enough doing their work that they are happily prepared to guarantee it?

Over the years we have found that most bookkeepers are happy to do the basics but are not really that confident in doing what they do.

So we now ask our clients to ask if their bookkeeper is happy to guarantee their work. What does that mean? Well it basically means that if the bookkeeping is not done correctly you can ask for your money back. If an audit is undertaken and fines and penalties are due will your bookkeeper pay for their negligence? Our experience shows that good bookkeepers are happy to provide guarantees. Those that are not so confident will run like a rabbit.

A good bookkeeper will help you grow your business. They will give advice you need to plan for growth, give you a heads up when things are not quite right and more importantly they are real professionals wanting to ensure the business has the ability to continue for the foreseeable future.

Crystal Clear Bookkeeping will help you to save time and money with your bookkeeping by:

  • Reduce Your Tax By At Least 10% Guaranteed
  • Fixed Monthly Bookkeeping From $89/MonthFull
  • Money Back Guarantee
  • Free Phone and Email Support
  • Great Management Reports – get  crystal clear clarity over your figures and get back into control of your finances.

 Call us today on 1300 440 316 to see how we can help you save time and money with your bookkeeping!

 

 

 

 

 

 

 

 

 

 

 

 

 

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