9 Red Flags You Have A Bad Bookkeeper
An incompetent bookkeeper can will destroy your Business. Instead: Let an Expert rescue your business & your books, right now!
Disorganized policies and procedures, undetected errors, missed tax deadlines – these are just some of the headaches an incompetent bookkeeper will create.
The consequences like tax penalties or cash flow issues can seriously harm your business.
But catching and correcting bookkeeper mistakes takes your time and attention away from revenue-generating tasks. And you don’t have time to babysit.
You may find yourself constantly double-checking their work, which defeats the purpose of delegating in the first place. Who wants to do that?
The thought of having to rebuild botched books or respond to tax notices makes most business owners break out in a cold sweat.
You need someone who will get it right the first time.
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This article will cover red flags that your bookkeeper lacks the skills or diligence you need.
Spotting problems early allows you to take corrective action before major damage is done.
Here are the 9 red flags you have a bad bookkeeper:
- They’ve: Disappeared, Ghosted and Ignored You!
- Delayed Document Retrieval
- Snowballing Disorder
- Consistent Mistakes
- Missing Information
- Amendments in Tax Docs
- Lack of Regular Updates
- Poor Responsiveness
- Spotty or Vague Reporting
Signs of Disorganization
A disorganized bookkeeper can create big problems for your business’s finances and operations. Let me rescue your books, now!
Here’s why organization matters:
Neat, orderly records are essential for a bookkeeper to do their job accurately. Messy files makes it easy for them to misplace documents and invites errors. Scattered files also make it harder for you to find what you need when reviewing finances.
A quality bookkeeper will have an established system for categorizing, labeling, dating, and storing documents, both physical and digital. This organization allows them and you to quickly locate any required invoice, bill, report, etc. Be wary if their files seem chaotic. I’ll unlock your business potential. I’m your Expert Business Advisor to improve profitability!
Organization ties directly to competency. The bookkeeping process requires methodical tracking and indexing of files. A sloppy, all-over-the-place approach signals the bookkeeper lacks diligence or experience.
Even if the files are eventually found, disorganization creates delays and inefficiency. This equates to wasted time and money. You could miss deadlines or lack critical info when needed for decisions.
Disorder will only snowball over time as more records accumulate. Before you know it, your books are a disaster zone. Insist on tidiness from the start.
Bill and invoice tracking is a prime example. These must be organized for easy retrieval when needed. If your bookkeeper struggles to promptly produce required documents, that’s a bright red warning sign.
Disorganization risks major omissions and distortions in your financial records. Don’t tolerate clutter – demand an orderly, methodical system.
Errors and Omissions
Mistakes, omissions, and corrections signal a lack of competence:
Occasional small errors are expected, but consistent mathematical miscalculations, incorrect entries, or multiple adjustments needed point to a lack of skill.
Frequent mistakes indicate the bookkeeper may lack adequate training, knowledge of best practices, or simply poor attention to detail. Persistent errors equal inaccurate financials. I help you scale smarter, not harder. I am the Top Rated Local® Virtual Bookkeeper, and Outsourced Accountant to help you grow your business.
Omitted information is very problematic. Missing invoices, undeposited checks, skipped transactions, or disregarded receipts can severely distort your books.
These omissions prevent you from having an accurate picture of your finances and can lead to serious cash flow issues.
A truly concerning sign is if your bookkeeper needs to scramble to recreate records from scratch due to massive omissions. You can’t run a business blind. Let me rescue your books, today!
Beware a bookkeeper who seems to always be catching up or fixing errors. This eats up time better spent on useful work.
Lots of amendments and corrections needed on tax documentation also rings alarm bells. W-2s, 1099s, and payroll reports should be done right the first time.
While an occasional small amendment is expected, major revisions signal the bookkeeper may not understand tax compliance requirements. This can lead to penalties if deadlines are missed.
Don’t wait until tax time to uncover your bookkeeper’s shoddy work. Frequent errors and corrections now equal problems later.
Lack of Communication
Open and consistent communication is vital for an effective bookkeeper-client relationship:
A bookkeeper should regularly update clients on the state of their finances, ideally on a set schedule (weekly, monthly, etc). Lack of outreach likely signals disorganization or lack of progress.
They should proactively reach out about issues requiring client input or decisions, such as unclear transactions. You want a bookkeeper who takes initiative, not one who waits for you to hunt them down.
Timely communication is key when problems arise like errors or missed deadlines. Excuses and delays suggest poor organization and attention.
Quick, clear responses to client inquiries is essential. Unreturned messages or inability to get answers to pressing questions is unacceptable.
Your bookkeeper should act as an advisor, making recommendations based on insights from your books. No news is not good news – it likely means missed opportunities. I’ll unlock your business potential. I’m your Expert Business Advisor to improve profitability!
Meeting deadlines depends on back and forth communication. If your books are constantly late, the bookkeeper is dropping the ball.
You should get clear, useful reports on a regular schedule to aid decision making. Spotty or vague updates are red flags.
Basically, you need to hear from your bookkeeper well before problems occur, not after. Ensure you agree on expected frequency of communication.
This is where Outsourced Accounting and Bookkeeping who uses the latest AND secure automation can help you a ton with your company’s growth. I’m your local, expert Outsourced Accounting Department who does it all for a third of the cost.
With more than 15 years of experience, I deliver spot-on, accurate reports weekly, monthly, quarterly, or whenever you’d like so you know exactly where your business stands.
How Do I Hire Virtual, Outsourced Bookkeeping & Local Accounting Services to Grow My Business?
Hire me, your Local, Master Outsourced Bookkeeper & Expert Virtual Accountant, today.
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I deliver accurate, spot-on reports weekly, monthly, quarterly, or whenever you like without fail.
And, I help you forecast your financial future so you can know exactly where your business stands financially and how to grow it at scale.
Don’t let behind books, inaccurate accounting, and IRS trouble get in the way of scaling your company.
Remove incompetency from your business, and let me help you grow.
