What you should expect from your Bookkeeper

While your Tax Accountant keeps their eye on the “big Picture,” your Bookkeeper should know exactly where you stand financially today.  A good bookkeeper will be a huge asset to your business because they have the knowledge and experience on how to accurately manage your business’s financial records. They can also provide insight into potential financial issues in the business.

Of course, they should know who owes you and who you owe. But they should also be able to tell you things like:

  • Who is your most profitable client?
  • What is your most profitable product line or service?
  • How’s the cash flow looking to cover the next BAS payment?

Your bookkeeper should provide regular financial reports: profit and loss, balance sheet, budgets and cash flow forecasts that give you all the information you need to improve the financial performance of your business. They will be able to guide you on what areas need improving, and those that are performing well that can be taken to the next level.

Try to set aside time each week, or worst case, each month, to tap their brain for these pearls of wisdom about your business.  Here’s the key information you should be asking your bookkeeper to provide you with regularly:

  1. Bank and credit card reconciliations.  All of your other reports are meaningless unless this is up to date. Keeping a weekly bank rec is also your primary tool for picking up any fraudulent transactions.
  2. Revenue and Margin Analysis.
  3. Cash-flow Analysis and Forecasts.