The bookkeeper’s role is to record and ensure every day-to-day financial transaction clearly and systematically. Gone are those days when companies could trust their employees blindly, but they surely no longer can. Why? Because the chances of fraud have risen, lack of motivation to complete tasks on time and employee’s opportunistic behavior is indeed leading companies to disaster.
No matter how much trust you may have on your bookkeeper, it would be best if you always double-check your bookkeeper’s work. The company’s financial decisions use bookkeeping records; the more accurate they are, the better are the decisions. Since business owners have to ensure other vital aspects of the business, bookkeeping activities often get neglected. This lack of care raises serious concerns about the company’s future, and this can even kick a business out of the competitive race if things are left unattended for long. So, you should keep a proper check and balance system in place for your future and the company’s growth and prosperity.
Encourage Questions
As the owner of the business, you can take possible measures to verify your bookkeeper’s work by asking questions about his/her job duties. You need to make sure your bookkeeper fulfills responsibilities to the best of his/her knowledge and skills. So, you should encourage questions and give your bookkeeper a collaborative and productive environment where he/she could satisfy your claims. As a business owner, going into the investigation for knowing about a complex financial transaction is your right. Your bookkeeper is liable to give a proper justification for every transaction, along with satisfying details. For example, a receipt of $20 from a gas-station could be a meal, gas, or something else, and your bookkeeper needs to be specific on spending.
Review Your Income Statement Every Month
Although some business owners ignore reviewing and cross-checking their income statements, you can get a clear picture of your finances. To avoid discrepancies, you need to review your income statement every month. This review is the best way to know how your business is performing. If it is not performing up to your expectations, there will undoubtedly be some fault with your bookkeeper.
Review Your Balance Sheet
If you have specific business goals and objectives, you can ask your bookkeeper to explain your balance sheet if you aren’t sure it is correct, or if you need clarification. It is ideal for reviewing bookkeeper’s work and keeping your accounting and financial manager in the loop for interpreting your balance sheet and its impact on your firm’s finances. Why? Because this is where most bookkeepers trick business owners since owners lack proper bookkeeping or accounting knowledge to comprehend the balance sheet themselves.
Have Scheduled Meetings Regularly
Most bookkeepers have a habit of delaying tasks assigned to them. This delay creates problems because sometimes, they forget to record vital financial transactions that increase issues and keeps companies from meeting their financial goals and objectives. By having scheduled meetings regularly with your bookkeeper, you can expect to have complete yet accurate results.
Update Your Bookkeeping Network
There is a specific type of business that uses bookkeeping or accounting software to record their day-to-day business transactions. So, if you are one of them, you need to ensure that your bookkeeping software is updated and produces optimal results. If you have hired an in-house bookkeeping expert, you need to keep a close eye on your entire bookkeeping network and ensure everything is in order and yield the right results.
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