Many people hire bookkeepers hastily either because they realized how messed up their financial records are, when seeking financial aid, or for some other reason. This sometimes results in hiring unqualified people just get the “done”.
Every business needs to maintain accurate accounting information at all times, and not simply maintaining records one deems fit.
But lets for a moment assume you’ve already hired a bookkeeper. How can you tell whether they are doing a good job or not? If your bookkeeper is not helping you achieve your business objectives, it’s time to let go.
We’ve compiled a list of five signs that tell you it’s time to fire your bookkeeper.
1. Doesn’t Understand Your Industry
It can really be frustrating to engage a bookkeeper who has no knowledge of experience about your industry. As a business owner, you can either lose money or time; but unfortunately, you’re likely to lose both.
It’s extremely important for you to work with a bookkeeper who has a balance of both knowledge and experience in your space. Otherwise, they are unlikely to understand tax laws and regulations, loopholes, and more, to help you boost your business profitability.
2. Failure to Explain Financial Statements
Small businesses have very plain and simple financial statements in the eyes of qualified bookkeepers. But the same cannot be said about lay people; this is why it is critical for the bookkeeper in charge to supply the stakeholders with sufficient explanations about all the vital items in the financials.
If sufficient information is not given, it might be time to find a new accountant or bookkeeper who understands and can convey the message in the financials in the simplest words possible.
3. Late Filing of Taxes
Incompetent accounting or bookkeeping professionals are generally procrastinators and this results in failure to meet tax deadlines. Taxes are some of the most expensive business overheads; if someone is not saving you taxes, they are likely to be adding you more. The last thing you want to do is to have to deal with high taxes plus imposed penalties and interests.
4. Outdated Knowledge in Taxes
Taxes are wide and ever-changing; for this reason, you need to work with a bookkeeper who strives to remain up to date with any new and existing tax laws. Small businesses should ensure that their bookkeepers and accountants attend relevant continuous professional training to keep up with new developments in the industry.
5. You Get Better Advice Elsewhere
If, as a business owner, you obtain better accounting or bookkeeping advice from other sources including articles, books, or other individuals, then it might be time to reevaluate your choice of a bookkeeper. Otherwise, you might find yourself bringing new suggestions to your bookkeeper, meaning you are doing a better job than they are. When that happens, know that it’s time to move on.
In conclusion, the above signs can help you gauge the competence of your bookkeeper or accountant. Based on their interaction with your business, you can easily tell whether you are getting what you paid for or not.
If you are looking to engage a new bookkeeper, we welcome you to review our industry knowledge and experience that makes us one of the most outstanding players in this sector. Should you have any questions, drop us an inquiry and we’ll get back to you as soon as possible.