The answer is simple. If you have concerns that your Company’s financial reports are not helping you manage your business, or even make sense to you, then the time is now!
There is more to keeping an accurate set of books than just knowing how to use the software and run some reports.
As a business owner, how much thought do you actually give your company’s financials and the bookkeeping that underlies them? Do they give you an accurate picture of how your business is doing? Do you think of your financials as a tool to more effectively manage your business, or just a task that needs to be completed for tax purposes?
Consider asking some of these questions?
1. Can your Bookkeeper explain things to you in a language you understand?
2. Does your Bookkeeper ask you questions about transactions?
3. Are your financial statements designed to help you understand your business?
4. Can your Bookkeeper provide you with their reasoning about why any particular transaction is booked to a certain account?
5. Does it seem like you are chronically short of funds and can your Bookkeeper explain why this keeps happening?
6. If you do ask your Bookkeeper a question, do you get a prompt response with an answer that makes sense?
If you answered no to more than half of these questions, you should be asking if your business is receiving the service and value necessary to help you get to the next level.
Since your internal accounting ultimately determines how your taxes are calculated, how your business is performing, and what financial benefits could accrue to the owners, then you should consider replacing your bookkeeper so you can get access to the information you need to manage your business finances.
I was recently contacted by a business owner who answered “no” to many of these questions. While the Bookkeeper was not too expensive, they also couldn’t meet the needs of this growing business. The reports didn’t help the owners understand their business, didn’t accurately reflect Company assets and liabilities, and it didn’t tell them what it cost to produce the Company’s products. We are now in the process of developing new financial reports and helping the owners lean to read and use this information to propel the business to the next level.
I guarantee that 12 months from today you will arrive. The question is where…?
As your business grows and matures, your needs will too. Make sure that you are selecting the right professional to provide you with reports that make sense, the answers to your questions, an understanding of how business works in the real world, and the knowledge to come up with practical solutions to the business challenges you face.
Would you like to talk more on this subject, or have you been thinking about replacing your bookkeeper?
Greg Parker’s intricate knowledge of company finances, as well as their involvement in strategic planning, has made him a highly-accomplished and sought after financial and operations trouble-shooter and business mentor.