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Is It Standard Practice to Double-Check Your Bookkeeper’s Work?
Understanding the Scenario
I work within a small digital media company, and we’ve engaged a rather pricey Bookkeeping team from a well-established firm. While they handle our taxes proficiently, I’m increasingly finding myself in a position where I need to meticulously review their Bookkeeping work.
The Issue
A recurring issue we experience is deposits being miscategorized, which in turn affects our revenue allocation across different business segments. This has become a significant concern as it disrupts our financial clarity.
Seeking Clarity
I’m curious to know whether it’s ordinary for Bookkeeping teams to rely on default categorizations in QuickBooks with minimal adjustments. Shouldn’t they ensure accuracy by thoroughly reviewing and correcting these categorizations? The errors are quite apparent and don’t require insider knowledge to identify.
Conclusion
I’m left wondering if the responsibility should truly fall on the client to go through QuickBooks and make necessary corrections, or if it’s something a competent bookkeeper should proactively address.
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One response
It’s understandable that you would expect precise and attentive service, especially from an expensive Bookkeeping team. Let’s delve into your concerns comprehensively:
Is It Normal to Check a Bookkeeper’s Work?
Routine Oversight
While it’s common for business owners to perform occasional reviews of their bookkeeper’s work, it’s not considered typical for them to have to “constantly” or “thoroughly” review it. Bookkeepers are hired to ensure the accuracy of financial records and to handle the intricate details involved in categorizing and recording financial transactions. Here’s what you would typically expect from a proficient bookkeeper:
Accurate Categorization: A key responsibility of a bookkeeper is to correctly categorize transactions from the outset. Misallocated transactions can affect financial reports and business decisions.
Attention to Detail: A good bookkeeper should proactively identify discrepancies or errors and correct them without needing prompting from their client.
Client-Specific Adjustments: They should be familiar with your business’s unique requirements and adjust categorizations accordingly, rather than relying solely on default settings in QuickBooks or any other Accounting Software.
Communication: If there’s uncertainty about categorization or anything unusual, the bookkeeper should communicate with you to ensure clarity and accuracy.
When Adjustments are Needed
Industry-Specific Nuances: If your business has unique industry-specific financial transactions or revenue streams that are not straightforward, communication between you and the Bookkeeping team is essential.
Initial Learning Curve: When you start with a new Bookkeeping service, or if your business undergoes significant changes, there may be an initial period where additional oversight is needed as the team becomes acclimated to your specific needs.
When to Take Action
Regular Errors: If you continuously encounter miscategorized transactions—especially if they are “clear and obvious”—this may indicate a need for re-evaluation of the service you are receiving.
Lack of Proactivity: If the bookkeepers are not taking corrective measures or being proactive in addressing known challenges, it may be time to discuss your expectations with them or consider alternative services.
Steps to Consider
Discuss Concerns: Schedule a meeting with your bookkeeping firm to discuss your concerns. Present specific examples of issues and ask for a solution moving forward.
Clarify Expectations: Reiterate your expectations regarding transaction categorization and accuracy. Ensure they understand the impact that