But how do you know if your bookkeeper is good or even better, a great bookkeeper?
A great bookkeeper can cost you less than a good bookkeeper
A bookkeeper is a bit like a medical GP, there’s one on every corner but great ones are hard to find. When you do find one, you should never let them go.
It is false economy to be doing your own bookkeeping unless that is what you do. You will do much better if you focus on your strengths and the things that are important to your business success and things that will have the biggest positive impact.
Things to address when looking for the right bookkeeper
You have a choice to employ a bookkeeper to outsource to a bookkeeping service provider.
Great bookkeepers are people you can trust. The relationship between you and your bookkeeper is sacred and should be based on the fact that your values are congruent. Most people won’t share their financial details with friends or even family, yet this person is privy to everything.
Make sure you really like your bookkeeper, that you trust them and feel comfortable being completely honest with them. Your bookkeeper cannot help you get the most out of your accounts if you are not being completely transparent with them.
Temperament or personality style
Have you ever wondered why you work really well with some people and seem to clash with others? Why can you predict how some people will react to situations and others leave you completely perplexed?
Chances are it has a lot to do with individual temperament or personality types. Everyone has different preferences that make up their personality type, and some personalities work better together than others. Your particular personality type might make it really easy to work with one bookkeeper and leave you struggling with another.
The words people choose, and how and when they use them, re important indicators of temperament, a crucial characteristic of US
Like most professionals, the less experienced and less qualified bookkeeper will usually be cheaper. But judging bookkeepers by price is very dangerous. If you’re simply comparing hourly rates, a highly experienced bookkeeper will always seem more expensive. This is not true because most experienced bookkeepers will also work significantly faster and smarter than someone who has less experience.
You should engage the best bookkeeper you can afford, simply because mistakes can be very costly.
“Making good judgements when one has complete data, facts and knowledge is not leadership – it’s bookkeeping”. Dee Hock
Experienced bookkeepers will understand your process and they will take the time to really understand your business and how you operate. They will make sure that the processes you use are as simple and efficient as possible, and nothing is missed or duplicated. They will be able to see areas that can be streamlined or improved.
Training and accreditation
Every bookkeeper should have some sort of formal bookkeeper or accounting training and preferably be a registered BAS Agent. A registered BAS agent means that the Taxation department will be more likely to be satisfied that the bookkeeper has the required skills, qualifications and a minimum amount of experience to correctly account for GST and prepare your BAS according to legislation.
Good bookkeepers will have a good understanding of technology
A sign of a really good bookkeeper is one who is up to date on what is happening in the bookkeeping, accounting and technology spaces.
Bookkeeping and accounting have evolved considerably for the better over the past few years due to changing technologies. Your bookkeeper should be helping you and encouraging you to use technology to save time and money by automating processes with cloud accounting packages and using payment systems along with the bank and other feeds.
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One of the biggest problems I find with small businesses and non-profit organisations is their lack of understanding when it comes to bookkeeping and the importance of keeping up-to-date.
Bookkeeping never seems to be a problem to them until there is a cash flow crisis or they are applying for a loan extension or new loan. The costs associated with poor bookkeeping far outweigh the costs of keeping everything up-to-date.
If you are struggling with your bookkeeping seek immediate advice, don’t get caught out when you are most vulnerable.