“`markdown

As a CPA, Am I Expecting Too Much from a Bookkeeper?

I don’t think I am, but I’m curious to hear others’ perspectives on this.

As a CPA who handles taxes, I collaborate with various bookkeepers for mutual clients. Generally, everything runs smoothly. However, there’s one particular bookkeeper who appears overwhelmed, and I’m wondering if my expectations are too high.

Here’s what I’ve observed:

Accounts are not properly reconciled. Despite her claims that they’re reconciled, the QuickBooks balance doesn’t match the bank’s.
Accounts Payable shows a debit balance.
An account labeled “payments to deposit” is never updated and continually grows.
The sales tax liability keeps increasing, with no payments recorded against it.
Credit cards have debit balances.
Accounts Receivable includes numerous negative accounts aged over 90 days.

These issues are just a small sample of the larger picture.

I’ve asked her to address these problems, but it seems she lacks the necessary knowledge. This isn’t advanced accounting—just basic debits, credits, and account reconciliation.

The other bookkeepers I work with don’t face these challenges. I’m left wondering if I’m fortunate to work with exceptional bookkeepers or if this particular bookkeeper is truly out of her depth.

So, am I expecting too much, or is this a sign that the bookkeeper is indeed overwhelmed?
“`

It sounds like you’re dealing with a challenging situation, and it’s valid to question whether your expectations are realistic. Here’s a detailed analysis of the issues you’ve outlined, along with some context that might help assess whether your expectations for the bookkeeper are in line with standard practices for the role.

Key Responsibilities of a Bookkeeper

Before diving into the issues, it’s important to clarify the typical responsibilities of a bookkeeper. Generally, a bookkeeper’s role includes:

Recording Financial Transactions: Keeping accurate and up-to-date records of all financial transactions.
Reconciling Accounts: Regularly reconciling cash and bank accounts to ensure records match bank statements.
Managing Accounts Payable and Receivable: Recording, verifying, and reconciling invoices and payments.
Tracking Sales and Expenses: Accurately applying sales tax and recording expenses.
Producing Regular Financial Reports: Providing reports that give insights into the current financial condition of the business.

Evaluation of Your Concerns

Let’s address each of the specific issues you’ve mentioned:

Accounts Not Properly Reconciled:
Expectation: It’s a fundamental task for bookkeepers to reconcile accounts. The discrepancy between QuickBooks (QB) and actual bank balances suggests a lack of attention to detail or understanding of reconciliation processes.
Reality Check: You are not expecting too much in wanting reconciled balances. This is a core aspect of Bookkeeping.
A/P Having a Debit Balance:
Expectation: Typically, Accounts Payable should have a credit balance indicating amounts owed. A debit balance could point to overpayments or entry errors needing correction.
Reality Check: Expecting correct balances is reasonable. Debit balances in A/P are unusual and indicate errors.
“Payments to Deposit” Growing Unchecked:
Expectation: This account should regularly be updated to reflect deposits made. A growing balance suggests transactions are being recorded incorrectly or not updated.
Reality Check: It’s fair to expect this account to be consistently maintained, as any longstanding balance affects cash flow visibility.
Sales Tax Liability Growth Without Payments:
Expectation: Sales tax liabilities should accurately reflect due amounts and be reduced when payments are made.
Reality Check: Accurate management of sales tax is crucial. Non-payment can lead to serious tax penalties, thus managing this properly is a basic requirement.
**Credit Cards with

One response

APAdmin

25 February 2025 at 7:18 PM
It sounds like you’re dealing with a challenging situation, and it’s valid to question whether your expectations are realistic. Here’s a detailed analysis of the issues you’ve outlined, along with some context that might help assess whether your expectations for the bookkeeper are in line with standard practices for the role.

Key Responsibilities of a Bookkeeper

Before diving into the issues, it’s important to clarify the typical responsibilities of a bookkeeper. Generally, a bookkeeper’s role includes:
1. Recording Financial Transactions: Keeping accurate and up-to-date records of all financial transactions.
2. Reconciling Accounts: Regularly reconciling cash and bank accounts to ensure records match bank statements.
3. Managing Accounts Payable and Receivable: Recording, verifying, and reconciling invoices and payments.
4. Tracking Sales and Expenses: Accurately applying sales tax and recording expenses.
5. Producing Regular Financial Reports: Providing reports that give insights into the current financial condition of the business.
Evaluation of Your Concerns

Let’s address each of the specific issues you’ve mentioned:
1. Accounts Not Properly Reconciled:
2. Expectation: It’s a fundamental task for bookkeepers to reconcile accounts. The discrepancy between QuickBooks (QB) and actual bank balances suggests a lack of attention to detail or understanding of reconciliation processes.
3. Reality Check: You are not expecting too much in wanting reconciled balances. This is a core aspect of Bookkeeping.
4. A/P Having a Debit Balance:
5. Expectation: Typically, Accounts Payable should have a credit balance indicating amounts owed. A debit balance could point to overpayments or entry errors needing correction.
6. Reality Check: Expecting correct balances is reasonable. Debit balances in A/P are unusual and indicate errors.
7. “Payments to Deposit” Growing Unchecked:
8. Expectation: This account should regularly be updated to reflect deposits made. A growing balance suggests transactions are being recorded incorrectly or not updated.
9. Reality Check: It’s fair to expect this account to be consistently maintained, as any longstanding balance affects cash flow visibility.
10. Sales Tax Liability Growth Without Payments:
11. Expectation: Sales tax liabilities should accurately reflect due amounts and be reduced when payments are made.
12. Reality Check: Accurate management of sales tax is crucial. Non-payment can lead to serious tax penalties, thus managing this properly is a basic requirement.
13. **Credit Cards with
Log in to Reply

As a CPA am I expecting too much from a bookkeeper?

Latest Comments

As a CPA, Am I Expecting Too Much from a Bookkeeper?

One response

Key Responsibilities of a Bookkeeper

Evaluation of Your Concerns

Leave a Reply Cancel reply