6 Signs You Need a New Bookkeeper

Do you ever wonder if your bookkeeper really understands the demands of running a profitable business?

Do you have concerns about their competency and reliability? If so, then you might require a new bookkeeper. Bookkeeping is an essential function of any company. It helps manage financial transactions, track expenses, and prepare reports that enable managers to make informed decisions.

A good bookkeeper manages conflicts of information, keeps records up-to-date, and follows accounting standards to ensure accurate reporting.

Hiring an effective bookkeeper can boost employee productivity by reducing redundant manual tasks and streamlining processes for other team members. If you answered yes to any of these questions, you need an assistant accountant or bookkeeper.

Here are some signs that indicate it's time to hire a new bookkeeper:

Paying Too Much Tax

Your bookkeeper might not know how to handle taxes. If you're paying too much tax, it could mean that your bookkeeper doesn't understand how to properly prepare your company's tax returns and get them done on time. These returns should be accurate and submitted to the relevant authorities promptly. If the books are inaccurate or late, you could pay too much in taxes or be audited by the ATO.

Lack of Time and Management of Paperwork

You may find that your bookkeeper is spending too long on the details of their work. If they take more than two hours to complete a task, it might be time to make some changes.

If you notice that your bookkeeper is taking too much time to complete tasks, consider hiring a new bookkeeper who can quickly produce reports and account statements. This will allow you to provide better customer service and increase employee productivity.

If your bookkeeper has trouble managing paperwork, it may be time for a change. This can happen when too many tasks or people are involved in the process. A good bookkeeper should manage all aspects of financial transactions so that other team members don't have to handle these responsibilities.

Feeling Uneasy About Them Handling Your Finances

If you feel uneasy about your bookkeeper handling your finances, there might be a problem in the relationship. You should feel comfortable with the person who manages your financials because they have access to confidential information and are in charge of transactions. They must be held accountable and brought on board for growth if they make mistakes.

A good bookkeeper will also stay up-to-date on techniques that can help them improve their skills so that they can continue growing with your business. It's important to note that even though someone has a strong track record, it doesn't automatically mean they won't leave without notice. The best way to eliminate this risk is by keeping an eye on how long employees are staying at the company and whether or not their morale is high.

Poor Communication Skills

If you feel uneasy about your bookkeeper handling your finances, there might be a problem in the relationship. You should feel comfortable with the person who manages your financials because they have access to confidential information and are in charge of transactions. They must be held accountable and brought on board for growth if they make mistakes.

A good bookkeeper will also stay up-to-date on techniques that can help them improve their skills so that they can continue growing with your business. It's important to note that even though someone has a strong track record, it doesn't automatically mean they won't leave without notice. The best way to eliminate this risk is by keeping an eye on how long employees are staying at the company and whether or not their morale is high.

Late Tax Filings

Consider filing late tax returns if your bookkeeper is consistently late submitting them. A bookkeeper who can't keep up with taxes and other financial obligations could lead to a company going out of business.