Top 7 signs your bookkeeper is fooling you

If the economy wasn’t bad enough, you might not have to watch out for unethical bookkeepers. But, the good news is, there are simple signs which can help detect whether a bookkeeper is substandard or someone you shouldn’t blindly trust.

Here’s a shortlist of warning bells that your bookkeeper is tricking you 

1. The bookkeeper is behind the books: 

When you stay behind the books frequently, it becomes easy for your business to lose track of finances. Firstly, it may seem like a fatal error, but gradually it may result in common recurring faults, which will eventually lead to an inescapable decline in your financial status. For instance, if your books are behind, it will simultaneously affect your business growth, and if the issue is not fixed in time, it may make it extremely difficult for you to catch up.

2. They cause you to file your tax returns late:

Filing the tax returns late can have negative consequences on your business. Thus, asserting the IRS and other financial authorities even more than usual. Failing to submit or file a significant report to the above authorities at the end of your fiscal year can quickly draw your business to several unpredictable risks. If your bookkeeper has ever made you face such circumstances on purpose or does this frequently, then it’s a sign of investigating your bookkeeper right away.

To avoid getting into trouble with your taxes, Bookkeepers in Steinbach are someone you may rely upon. They have over 20 years of experience in the financial service industry and can help you with any strategic financial decisions, incorrect tax claims, and more.

3. They ask for funds frequently: 

A bookkeeper who is constantly seeking more funds should be suspected. It will result in increasing your overhead cost. In turn, this may affect your profit margin to a great extent, which is not suitable for small-scale businesses.

4. You notice several cheque bounces: 

It may often happen that if you don’t have sufficient funds in your account, cheque deposits can bounce. If your bookkeeper doesn’t give you insights into your financial statements or cause hindrance during the investigation process, you certainly need to make a second thought.

5. They make excuses to provide you with your Accounting access: 

If your bookkeeper is not sharing the complete financial reports/data with you, it will be much easier for them to hide certain transactions. It will undoubtedly affect your business growth and the confidentiality of information which risks your business security.

6. They often make incorrect coding mistakes:

If your bookkeeper is often making errors in coding, it will hinder the process of pulling reports and affect accounting accuracy. It can be a significant issue as it may result in business loss which you never expected before. So, it becomes necessary to hire a bookkeeping service with excellent knowledge and experience in the bookkeeping field.

They push you to use specific software/programs: If your bookkeeper is trying to make you buy a particular plan, it may be for their benefit.

7. They don’t keep you up with the reconciliation: 

A bookkeeper who does not convey their work and reconciliation progress with you regularly may be hiding some facts from you. It can also suggest that they are trying to automate your business without your knowledge and once again resulting in business loss.

How to avoid bad bookkeepers?

To avoid all the scenarios mentioned above, choose your bookkeeper carefully. Here are some of the quick tips which will help you out in choosing the right bookkeeper for your business:

– Verify their qualifications and licenses – Ensure that they have an excellent knowledge of computerized accounting software

– Verify whether they meet strict requirements set by the professional associations

– Ask them for references from previous clients and check with these references about their experience working with your prospective bookkeeper.

-Get updates on their work regularly: The worst-case scenario in a bookkeeping service appears mainly when the bookkeepers are left on their own without questioning about their work updates, daily tasks, projects, and their perception. 

-They must have some work experience to do the job successfully. If not, then they must have a legal work certificate to prove their authenticity at work and knowledge

Important: 

Before hiring a bookkeeper, it’s essential first to understand your business type and nature. It will help you to pick the right service provider. For instance, if you are running an online business platform or any other small business, you should approach someone highly efficient in internet-oriented financial activities, like the bookkeeping service in Steinbach . You can also seek advice from experienced professionals who have worked with a similar type of business before.

In addition to all these, you must also check their references before hiring them for your business as it will help you make a better decision and understand the expectations from them.

7 Important questions that you must ask a bookkeeper before hiring

To avoid all the scenarios mentioned above, choose your bookkeeper carefully. Here are some of the quick tips which will help you out in choosing the right bookkeeper for your business:

– Are you a member of any professional associations? This ensures that they have a general knowledge about accounting and their skills are up to the latest standards.

– Are you confident you will meet our strict compliance standards as well as the regulatory requirements? These questions will help you keep track of their work and if they’re qualified enough to handle your business.

– Do you have any recommendations? Ask for recommendations from their previous clients so that you can cross verify whether they meet your requirements or not before hiring them.

– What are your payment terms? Discuss this matter with your prospective bookkeeper so that all of you will be on the same page about the upcoming financial transactions.

– How long have you been in this business? Asking them about the duration of their experience is essential because it will give you a clear insight into their skills which are worth investing your time or not.

– Are you familiar with our industry, income tax rules & regulations, and what software do you use to maintain the financial records? Make sure they have strong knowledge about your industry and the software they’re using.

– Will you be working directly with me, or is there a specific procedure I need to follow? It would help if you always informed them about their role in your business so that all of you will have clear expectations while working together.

Ending Note:

Therefore the bottom line is, you should always be cautious about whom you are hiring. The last thing you would want is to be fooled by your bookkeeper. And to help yourself with that, ask as many questions as you need to ensure whether the bookkeeper is fit to hire or not. Besides, never leave them on their own to handle the financial affairs of your business; instead, take your call and get their work updates more frequently.

Hopefully, this blog may have done its part to help you be aware and avoid the unfit bookkeeper for your business. Moreover, if you are looking for a reliable company, reach out to Genesis Bookkeeping Ltd. anytime. They have some of the best bookkeepers in Steinbach that you may trust. From bookkeeping to accounting and auditing, they have a professional for all your financial needs.