Accounting is part and parcel of the Key Performance Metrics (KPIs) of a successful business. Therefore, apart from monitoring your customer growth and retention, you need stellar accounting processes to ensure that your financials are in order. Here are ten questions that business owners should ask their bookkeepers to ensure that they have the right team of top-notch accountants:
1. Where do you think we’re wasting money?
Your business’s bookkeeper knows your business’s finances better than you and should be able to answer this question without any hesitation. If your bookkeeper is actually doing everything according to the books, he or she won’t have a problem answering this question clearly. Your accountant knows every transaction that happens in the business and should help you know where you can save money.
2. Do you have suggestions on howto make the bookkeeping system more efficient?
Your bookkeeper should give you workable examples of how to achieve simple efficiencies such as memorizing transactions and printing checks from Quick Books. The bookkeeper should be knowledgeable and up to date about any technological advancements happening in the accounting industry.
3. Do you have any form of customized reporting?
Smart financial reporting goes beyond the basic profit & loss accounts and the traditional balance sheet. The bookkeeper should have a customized reporting system that allows you to extract crucial data from the financial reports depending on your type of business.
4. How much year-end work do you have to do?
You need to be aware of the amount of work that your bookkeeper or accountant is doing. Sometimes, you might end up paying your bookkeeper for work that your tax filler is doing. Cut down on your total bill by knowing who is doing what in the accounting department.
5. How did we perform this period compared to last period?
While the output of your financials may be different from that of your CRM, they display trends in terms of financial health. Depending on your business model, your accountant should consistently create new items in your business’s charts of accounts, whether monthly, quarterly or annually.
6. Do you have any suggestions on how we can improve sales?
An experienced bookkeeper can give you interesting sales ideas. Your bookkeeper can notice some beneficial sales trends that you might have overlooked.
7. Are you comfortable with your job?
Unsatisfied employees are always unproductive. Therefore, be sure to ask whether your bookkeeper enjoys doing his or her job. If there are some additional tasks, ask whether he or she is willing to take them on. A happy employee is a very valuable asset, especially in the accounting department.
8. How can bookkeeping help us make informed decisions?
A credible bookkeeping system can allow you to make critical business decisions in real-time. If your bookkeeper doesn’t help you to identify ways of utilizing the system to make important business decisions, then you should consider hiring a new bookkeeper.
9. Can I see our most recent cash reconciliation?
Reconciliations along with any lines of credit are often performed every time the books are closed. Your bookkeeper should be able to demonstrate that your balance sheets match.
10. Do you think you’re adding value to this company?
This is how you can know whether your accountant thinks positively about the company and has viable expectations. This is an opportunity to let your bookkeeper set his or her own goals. Analyze whether the goals align well with your business’s objectives.
As the business owner, you have a duty to ensure that your bookkeeping system is running smoothly and efficiently. Consider outsourcing your bookkeeping services to promote accountably and cut costs. If you are looking for bookkeeping and accounting services in North Carolina, contact Accounting By The Books LLC for professional services.