How to Make Sure Your Bookkeeper Has Everything They Need to Do Their Job (Part 1)

In my 15 years as a bookkeeping professional, I have seen many articles, blogs and tips lists for business owners seeking bookkeepers or accountants, whether an employee or a service. What education, experience, software training or accreditations to look for, and so on. As an entrepreneur you have now taken that huge, and sometimes daunting, step of hiring someone who will effectively run your business. Now, how do you make sure they have everything they need to help him or her to perform their duties effectively and efficiently?

Speaking from experience, as well as conversations with colleagues and accountants, combined with a lot of reading and research, I believe it comes down to four essentials: Communication, Trust, Organization and Appreciation.

Communication

First and foremost, it *must* start at the very beginning, and at every level. Without it you cannot build a relationship, business or otherwise. Remember, this person is the one who can financially make or break your enterprise.

Clear, concise and complete communication is an absolute, right from the outset. Put responsibilities and expectations *in writing*. If your bookkeeper or service requests an engagement agreement, it is in everyone’s best interest to have one in place. It should spell out every detail of who is responsible for every aspect of your recordkeeping, how often you are invoiced, how often they expect to be paid, and even who owns the data!

When you prepare your documents before giving them to your bookkeeper, make sure they are all clear, and legible. Many vendors use codes on their invoices or sales receipts, and do not state what was purchased, product or service. If that is the case, then put a written description on the back.

Remember not to *withhold* information either. You may think it is none of the bookkeeper’s business, but if it has to do with yours and means the difference between paying and not paying income tax, it *is* your bookkeeper’s business. It might be embarrassing, or whatever, but remember your bookkeeper is able to keep your business to themselves. I don’t think you would hire a blabbermouth!

Communication goes both ways, not only from you to the bookkeeper, but from the bookkeeper back to you again. Keep yourself informed! It is *your* business, and *your* money! Ask for regular reports, balance sheets, income statements, a/r and a/p details listings. Make yourself aware of the cash inflows and outflows. Have your bookkeeper explain what you are reading if this is new to you. Have them run comparison reports and get them to explain changes.

The devil is in the details. Missed details can mean unrecorded expenses or income, errors, missed deadlines which means penalties, interest and even fines!

Trust

Good communication leads to added trust. If you don't trust the people who help you with your business, then you spend too much time worrying about your workers, your business, your cash, and the government. Eventually things will start to go off the rails because you aren't focusing on serving your customers or growing your business.

If you have done your due diligence and been satisfied enough to hire someone, then you should trust they are a professional. While a bookkeeper or general accountant is not necessarily there to find errors (serious or otherwise) or to detect potential theft or fraud, do take any concerns they raise seriously. Your bookkeeper is the best person to be able to tell you that you are overspending on your communications, or that a supplier has raised prices. If your bookkeeper offers suggestions or advice, listen carefully. Experience in a wide variety of businesses makes your bookkeeper a wealth of information.