Accounting all year round

Posted on: 26 March 2021

To run your business successfully, you must keep your clients happy. You must focus on completing work for your clients and ensuring that your staff know what they should be doing. Taking care of these vital day-to-day matters often mean that less immediate concerns, such as accurate bookkeeping become marginalized. Issues that are skipped at one point are likely to recur later as much larger problems. 

Perhaps you need to understand why your company suddenly has cash flow problems or why no-one filed your tax returns on time. To avoid costly financial mistakes, hire bookkeepers who will ensure that every transaction is properly recorded. Good bookkeepers will show you how much money is coming into your business, and where it is going when it leaves.

When you must find bookkeepers to keep your company finances in order, there are characteristics that you can look for to ensure that you only choose competent bookkeepers who will not neglect your financial records. Three things that you should check with any prospective bookkeeper are:

1. Their Qualifications

Bookkeepers work with figures and should have a solid understanding of accountancy. Ask them where and when they obtained their qualifications. If their accountancy qualifications are older than a few years, it is worth inquiring how they have kept their qualifications current. It's also good to ask whether they are a member of any professional body.

2. Their Experience

Qualifications are important, but a proven track record demonstrating their use is far better. Ask any bookkeepers you are considering hiring about organizations they have worked with previously. Ask about their experience, not just with bookkeeping generally, but ask specifically about each aspect of the task, such as cash inflow and cash outflow. Ask them which previous employers were most like your business and try to determine whether they have a clear understanding of how your business operates.

3. Their Speed

Most bookkeepers charge on an hourly basis, but that won't tell you how much you will need to pay them. Ask each bookkeeper how long it will take for them to manage your company books each week. A more experienced bookkeeper will work faster than a less experienced bookkeeper and could cost you less than someone with a lower hourly feẹ.

Based on the way prospective bookkeepers answer these three questions, you will have an easier time finding someone who will keep your business finances on track.