Bookkeeping simply works to provide you with accurate financial information. The word financials is somewhat scary to non-accountants or MBAs. So, let’s put it another way.
Proper bookkeeping allows you to:
- Know who owes you money so that you can follow up to make sure that you get paid.
- Informs you of any fees, interest or penalties that you’re being charged.
- Tracks how much money you owe other companies and people.
- Restricts “unauthorized” bills or checks.
- Informs you when taxes are due.
- Highlights areas you need to control to get your business running better.
- Is critical if you want to attract lenders or investors.
- Provides you reports that help you really understand all parts of your business.
The two things you should absolutely expect from any bookkeeper is accuracy and timely reports. If you’re not getting these there is something seriously wrong with your bookkeeper or company and you should immediately fix this.
If you don’t understand the reports or information you are given - ask! Understanding your reports is critical to your success. A good bookkeeper will be happy to explain their reports or point you to a reference where you can learn more. Don’t let your insecurities stop you from asking questions. They work for you - and it’s important that you understand what they tell you. After asking enough questions - you will learn. Don’t be frustrated if you don’t fully and immediately understand everything.
Bokkeepers may be local or remote. Every business needs an accounting system. If your accounting system is a pile of invoices, bills, and bank statements you should find a local bookkeeper that can come into your office. If you have a cloud based accounting system, you have more options to choose from as your bookkeeper does not need to be local. Generally, your costs will be much lower with a non-local bookkeeper.