6 Signs Your Business Needs a New Bookkeeping Service

Did you know that the average business spends 20 hours on taxes? That includes ten hours of record keeping!

You’ve hired a bookkeeper or accountant to save you time, not a headache. If you’re scratching your head and the numbers don’t add up, it might be time for a new bookkeeping service. 

But how do you know it’s time to make the switch? Read this guide on the top signs it’s time to make a change today. 

1. Late Reports

The word “tax” is from the Latin word taxo, meaning “I estimate.” Hiring a new bookkeeper should be a top priority if you receive your monthly and weekly reports late. They might be overwhelmed and unable to keep up, which could be a bad sign for accuracy. Ask for specific deliverables such as profit and loss statements, account receivable by the fifth, etc. 

2. Confusing Information

If you’re struggling to understand the information, it might be time to check your options for bookkeepers. They could be providing you with wrong information or errors. Remember that financial reports should help you run your business. 

3. Transparency Concerns

Accounting for businesses needs to be transparent. This is a part of building trust for your team. 

This includes accountability, openness, and regular communication. Do they take accountability if there’s an error, or do they try to blame others? 

They need to pull all financial reports you’d like to see. It should be able to tell you anywhere that needs help in your business. 

4. Reliability Concerns

You want a bookkeeper who will be reliable and have a backup if necessary. If you have questions when they go on vacation, you’ll want to ensure there’s a backup. 

Ensure that their services include all of your financial data points. This could include an inventory system, payroll, invoice, etc. 

Having these technology systems in place could reduce problems from occurring. In addition, the more they automate, the more consistent the results will be with fewer errors. 

5. Inconsistent Coding

Your bookkeeper needs to understand the Chart of Account. Any inconsistencies could impact the management report. 

The wrong bookkeeper might place items in the wrong account. Or they could code in multiple accounts. This could lead to unnecessary processing fees or impact your tax liability. 

6. Many Mistakes

While mistakes every once in a while could happen, watch out for multiple mistakes. You’ll want the information to be accurate, so your books are correct. If it happens regularly, you might want to be hiring a new bookkeeper. 

If nothing adds up, that’s another clear sign. You’ll notice this at the end of the month. These errors could be seen even sooner. 

Exploring the Top Signs You Need a New Bookkeeping Service

After exploring this guide, you should better understand when you need a new bookkeeping service. Are you ready to get started with a trustworthy and professional bookkeeper? 

Schedule a free consultation today! We use collaborative cloud-based accounting so you can keep track of your data. You’ll have access to everything from payroll processing to bill pay.