Should I Be Double-Checking My Bookkeeper’s Work?
Managing finances is a critical aspect of running a small digital media business, especially when you’ve invested in a premium Bookkeeping team from a well-established firm. This team has successfully handled our taxes, but I’ve noticed a recurring issue: the need to meticulously Audit their Bookkeeping.
The problem often arises with deposits being incorrectly categorized, which subsequently affects how we allocate revenue across our different businesses. Such errors seem clear and conspicuous—certainly not something that requires insider knowledge to identify.
It raises the question: Is it normal for a Bookkeeping team to rely heavily on default categorizations in QuickBooks without making necessary adjustments? Should the onus be on us, the clients, to go through QuickBooks and rectify these categorizations?
In an ideal world, a proficient bookkeeper would proactively identify and correct these apparent missteps. So why aren’t they? This disconnect is worth exploring to ensure our financial records reflect our actual business operations accurately.
Understanding these dynamics can help determine whether it’s time to reassess our current bookkeeping arrangements or have a candid conversation with our team to clarify expectations and improve accuracy. Ultimately, gaining confidence in your bookkeeping process is crucial for reaping the full benefits of your investment in financial expertise.
One response
It’s understandable to feel concerned and somewhat frustrated about needing to meticulously review your bookkeeper’s work, especially when you’re investing in what you believe to be a high-quality service from a larger firm. To address your question, let’s delve into what you should reasonably expect from a professional Bookkeeping service and how you can navigate this situation effectively.
Expectations from a Professional Bookkeeping Service:
Accuracy: At a fundamental level, the work delivered should be accurate and precise. Frequent errors, especially if they’re clear and obvious to someone familiar with your business, shouldn’t be the norm. Minor mistakes can happen, but recurring issues indicate a gap in understanding your business’s unique financial landscape.
Customization: Good Bookkeeping isn’t just about data entry—it’s about understanding the nuances of your business. Bookkeepers should tailor categorizations to reflect your specific revenue streams and cost structures. Over-reliance on default categorizations in QuickBooks suggests a lack of personalization.
Proactivity: A diligent bookkeeper should proactively review and verify transactions for potential errors. They should be familiar with the typical financial patterns of your business, making them well-equipped to catch discrepancies before delivering their work to you.
Communication: Effective communication is key. They should be open to discussing your categorizations and willing to adjust their approach based on your input. They may also need to request more context about your business operations to improve accuracy.
Practical Steps Moving Forward:
Open a Dialogue: Begin with a constructive conversation with the bookkeeping team. Clearly outline your concerns and provide examples of past errors. Communicate your expectations for more tailored categorization in line with your business’s specific needs.
Provide Detailed Guidelines: Consider drafting or updating a detailed categorization guide specific to your business. This can serve as a reference point for the bookkeepers and help minimize misclassifications.
Request a Dedicated Point of Contact: Larger firms often have multiple staff working on your account. Requesting a dedicated point of contact can foster accountability and ensure someone is fully versed in your business processes.
Regular Check-Ins: Schedule regular reviews where errors can be discussed, and strategies for improvement can be implemented. This helps in holding the service accountable and in aligning them more closely with your expectations.
Evaluate Alternatives: If issues persist despite these efforts, it may be worth exploring other bookkeeping service providers or hiring a dedicated in-house bookkeeper who