If this is your first time visiting the Park City Bookkeepers blog, or if you’re a regular, PLEASE let me impart one piece of advice…
Hiring a bad bookkeeper can be very expensive.
Most of my clients call me after one of two scenarios.
1) They have been doing their own books and are overwhelmed
2) Had a bad bookkeeping experience. Some of the disasters I have seen them face are:
- Complete theft
- Inaccurate data entry
- Poor accounts receivable tracking
- Poor setup with QuickBooks
- Inconsistent categorization of expenses in the Chart of Accounts
- Not up to date with compliance issues
The most obvious problem here is theft – it doesn’t take much to see the harm that can come to you when someone steals money from you and your business. But what is harder to visualize are the other disasters I mentioned. These other issues are often more long-lasting and costly.
Inaccurate data entry or inconsistent coding of expenses may seem like….meh….not such a big deal. WRONG.
When you are sitting in a room with an IRS or state auditor with little way to explain to them the numbers on your tax return, it can cost you thousands of dollars in taxes and penalties. Not to mention all the money you will have to spend to have your CPA represent you and manage, the audit.
Most every business owner I know wants to be compliant. These entrepreneurs rely on their team of professionals – lawyers, accountants and bookkeepers – to make sure these details are handled. If your bookkeeper doesn’t know that you can be fined BIG BUCKS for not having Workers Comp insurance in Utah, for example, they might let the policy lapse and your leave you holding the bag for a five figure fine.
If your bookkeeper is in charge of managing your Accounts Receivable (your money coming IN), you better keep an eye on it closely. I’ve had a ton of clients who have outstanding invoices on their books that they can’t explain and “swear they have been paid for”. More often than not, bad bookkeepers don’t follow up on money owed to you, which means you eliminated any profit on that job, and it probably ate into the profit of others.
The moral of the story here is hire qualified professionals, especially qualified bookkeepers. You want A-Team members, not the bench-riders. Lucky for you, you are in the right place. Ask us here how we can audit-proof your business and save you time and money each and every week!