How to Determine If Your Bookkeeping Assistant Is Taking Too Long
Running my own Bookkeeping business reached full capacity within just a year and a half when I was handling everything solo. To manage the workload and foster growth, I brought on a contract bookkeeper. The goal was to offload some responsibilities, allowing me to take on more clients.
The contract bookkeeper has been with me for a year now, but I’ve noticed he takes quite a bit of time to complete tasks. While I understand that efficiency improves with experience and that accuracy is paramount, I’m growing concerned about the prolonged completion times of certain files. He seems to struggle with remembering how to handle specific tasks, and one annual file alone has taken him over 80 hours to complete.
I find myself questioning: how long should it realistically take to complete Bookkeeping tasks? At what point does it become unjustifiable to retain him as part of my team? I aim to be fair and avoid making any hasty decisions, but it’s challenging to gauge his efficiency since he works remotely.
Any advice would be greatly appreciated!
One response
When evaluating the performance of a contracted bookkeeper, especially in the context of your growing Bookkeeping business, it’s important to balance the time taken to complete tasks with the accuracy and quality of the work. Here’s a structured approach to help you assess whether your bookkeeper is taking too long and determine the next steps:
1. Benchmarking and Expectation Setting
Industry Standards: Research average completion times for specific Bookkeeping tasks within your industry. This can vary depending on complexity, but having a reference point can be helpful.
Your Previous Experience: Reflect on how long similar tasks took when you were handling the books alone. This can serve as a personal benchmark.
Task Analysis: Break down the Bookkeeping tasks into smaller components and estimate reasonable timeframes for each based on your experience.
2. Performance Measurement
Time Tracking: Implement a time-tracking tool to monitor how long your bookkeeper spends on various tasks. This will give you data to review patterns and bottlenecks.
Error Rate: Evaluate the accuracy of the work. Frequent errors might mean that the bookkeeper is spending time redoing tasks, which could also contribute to slow progress.
Comparison with Peers: If you have other bookkeepers, compare workloads and completion times. If not, consider industry averages for similar roles or seek insights from industry groups.
3. Skill and Knowledge Assessment
Identify Gaps: Determine if there are knowledge or skill gaps causing delays. Is he struggling with particular software, processes, or typical bookkeeping tasks?
Training Opportunities: Offer opportunities for training or refresher courses if you identify specific areas where he needs improvement.
4. Communication and Feedback
Regular Check-ins: Schedule consistent meetings to discuss progress, challenges, and expectations. This can help identify early signs of struggle or miscommunication.
Constructive Feedback: Provide specific examples of where you notice delays and discuss potential areas for improvement.
5. Cost-Benefit Analysis
Financial Impact: Evaluate if the extra time taken is affecting profitability. Compare his cost (hourly wage or contract fee) with the revenue generated from the work he completes.
Client Satisfaction: Consider if there have been any client complaints or feedback related to delays. Client dissatisfaction can impact your business reputation and growth.
6. Decision-Making