58. Signs of a Sloppy Bookkeeper
October 18, 2019
This episode is brought to you by my bookkeeping strategy sessions. When it comes to your bookkeeping, you’re probably in one of three areas. Doing it yourself, outsourcing some or all of your bookkeeping to a professional or understanding what the reports mean and making better business decisions from that information. Each of these stages comes with different struggles and questions. I can help with all three. Bring your questions, and I’ll bring some solutions. To book one of these sessions, email me at email@example.com. Now, on with the show.
Welcome back to the podcast!
This episode is part of our outsourcing series. In episode 52 we talked about the difference between a bookkeeper, accountant, cpa and cfo. In episode 53 and 54 we talked about your expectations for your bookkeeper and your bookkeeper’s expectations of you. Episode 55 was a bonus episode of a book review. Episode 56 was all about where to find a independent-contractor bookkeeper. Episode 57 is about the difference between a good, better and best bookkeeper. A few of those episodes have an accompanying PDF guide. You can find those guides in our private facebook group. If you go to lydiagmiller.com/join you can answer a few questions, enter your email and then I will approve you to be apart of the group.
In today’s episode I want to share with you about 3 signs of a sloppy bookkeeper. You can have a bookkeeper who is stealing money from you and covering it up, but that’s not what I’m talking about. I’m talking about a bookkeeper who isn’t stealing from you but is just a little careless.
- They don’t ask for receipts. They never ask you for receipts for purchases that you’ve made. They have to have this information to categorize expenses appropriately, but if they never ask you for the information, then they’re just guessing. If you aren’t providing those receipts, then that’s a sign that you’re a sloppy business owner! Make sure that you and your bookkeeper have a system of how you provide all of your receipts and the reasons for purchase.
- They aren’t consistent with their categorizing. If you look at the detail in your chart of accounts and realize that for a recurring charge like Adobe subscriptions are put into 5 different categories. One month it’s in subscriptions another it’s in marketing another it’s in computer and another it’s in cost of goods sold, then they aren’t being consistent and that is a huge red flag. They need to be putting the transactions in the right categories every single month.
- They don’t get you your information timely. This doesn’t mean that they’re done with it on the first. But if they can’t have you the information by the 10th of the month, then there’s a problem there. They should be able to get you the previous month’s information quickly and accurately so you can look back, see what you did the last month and quickly make adjustments for the current month. If they’re not getting you information until the 20th, then you either need to ask for the information sooner or find someone who can get you the information you need faster.
Those are three common problems and complains that I hear business owners make about their bookkeeper. Again, these aren’t bad people, they might not be trained properly, or they might be downright lazy, and you don’t want them on your team.
If you have a bookkeeper like this and are looking for someone else, let me encourage you to listen through the first part of this series. I go through where you can find a bookkeeper your expectations for them and so on. Also, in our private facebook group you can find my PDF resources to help you find that perfect fit for your team in your business.
I’d be honored to work with you. To get started, email me at firstname.lastname@example.org with the problem you’re having and we can discuss the best way to get to a solution.
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I would love to connect with you. You can find me on Instagram @lydia.miller.mba and always by email email@example.com.
So until next time, go, make it happen.