Startups understand the importance of bookkeeping and having a bookkeeper to keep track of their financial picture. So, if you’ve read our blog, you may already have a bookkeeper in place who handles your finances and does your payroll. However, is your bookkeeper the right one for your business — or should you hire a controller?
Replacing a bookkeeper isn’t fun, but here are some signs that it may be time to find someone who can handle all the financial needs of your business:
Your Bookkeeper Doesn’t Understand Your Business
Your bookkeeper may have an excellent reputation working for some popular and well-established businesses in your area — but that still doesn’t mean they’re right for you. If your bookkeeper isn’t familiar with startups or your business niche, it may be time to find someone who is more well-rounded than someone who simply does bookkeeping.
Your Bookkeeper Is Old School
Yes, bookkeeping is all about keeping track of money coming in and going out, and yes, the most important thing is that the money is kept track of. But if your bookkeeper is still using paper ledgers and using a calculator to add up the numbers, they need to go. Of course, it sounds obvious, but the old school mentality still prevails.
Look for a controller who’s up on the latest technology to help do the job. When your controller uses a computer bookkeeping program, there’s less of a chance errors could occur during the calculations. And it’s faster, which means your controller can concentrate on other aspects of your business.
Your Bookkeeper Does the Bare Minimum
Today’s small businesses and startups are powered by everyone pulling their weight (and then some!) by contributing ideas and extra value. If your bookkeeper only keeps track of the basics without providing you with other calculations like projections or some additional value to your business, you may want to consider finding someone who is more well-rounded.
Your Bookkeeper Doesn’t Communicate
Although it may seem more manageable to let them handle it, you don’t want a bookkeeper who only gives you a monthly or quarterly report. Instead, look for a controller who will keep you in the loop by giving you a clear picture of your entire financial picture regularly. And if you have a question, they should answer you as soon as they possibly can.
Your Bookkeeper Is Encouraging Illegal Activity
If your bookkeeper is suggesting fudging the numbers to get a loan or to lower your taxes, or they’ve engaged in some other unethical behaviour, that’s a major red flag. It may seem like they’re trying to help your business, but this could have severe repercussions for your business.
The person who handles your finances should offer practical, legal solutions to help your business thrive instead of shortcuts or unethical practices.
You’re Your Own Bookkeeper
Maybe the issue is that you’re trying to be the bookkeeper for your own business or your friend or family member donates their time to do your books sometimes. If that’s the case, it’s time to hand over your bookkeeping to someone who can concentrate on giving your financial picture the attention it needs. And you can go back to concentrating on growing your business.
At Virtual CFO, we have the skills and experience to handle your startup’s day-to-day finances and help you improve your business systems. Contact us today to learn how we can help you.
