How Good Bookkeeping Can Help Protect & Grow Your Business

INTRODUCTIONBookkeeping is a vital segment of business. Most accountants are looking at your books after the fact and don’t have a handle on all of the detail. As a CPA with over thirty years of experience I can tell you quite frankly that it’s not my job to know all of the details. If your accountant does then he is more of a glorified bookkeeper and you’re paying accounting rates for bookkeeping services. I have handled either directly or indirectly thousands of small businesses and there is no way for any accountant to have the same level of involvement that a bookkeeper has.A bookkeeper is a financial gatekeeper recording and reconciling all of the businesses transactions. The accountant’s role is to oversee the bookkeeper and make sure that:All of the transactions have been entered.
The accounts have been reconciled.
The categorization of the transactions are accurate.Even when doing an audit there is a statement included in the management representation letter that states specifically that an audit is not intended to detect fraud. An audit is conducted to certify that the businesses financial statements reflect accurately, the financial position of the firm and the results of its operations. It’s not going to detect padded expense accounts, over billing, waste, inefficiencies and theft. If it is uncovered it’s usually by luck or someone’s blatant stupidity.

A certified audit is the highest standard of financial reporting there is. Forensic accountants can and do find theft and fraud when hired to do so. Those types of engagements are expensive and usually only occur when there is a divorce, partner disagreement or suspected financial maleficence. Small businesses do not have audits or forensic accounting conducted on a regular basis leaving only themselves, their employees and hopefully a good bookkeeper to watch their money.Protect Your BusinessYou worked hard to get where you are. How can you be sure all of your profits are staying in the business. What happens if you get that dreaded letter You are commanded to produce your books and records… ” It’s the kind of stuff that creates anxiety, stress and lost sleep.Did you ever hear one of those stories where a trusted employee stole $xxxxxx amount of money. If you read between the lines like I do you will learn that the transgressions were going on for a long time. Not only that, as an accountant I could see a few little safeguards that should have been in place to protect the business owner from this happening.A good bookkeeper will develop a good bookkeeping system with the aid of a pro-active accountant. An understanding of how you run your business is essential for your bookkeeper to help create those checks and balances that insure against:Government Audits
TheftGrow Your BusinessA good bookkeeper working with a good bookkeeping system can help you grow your business. Any successful entrepreneur will tell you that one of their keys to success is knowing their numbers. Most small business owners put the onus on their accountants but the truth is that they are usually not in the unique position the bookkeeper is to identify problems as they occur.

Timing is everything and you need to have a few pieces in place to be in that comfortable place knowing that you are getting the most out of your business. Your bookkeeper can help put you in the position to:Know your numbers
Utilize Financial Reports
Forecasting Cash Flow
Create Income & Expenses BudgetsThe SolutionYou need to have a trained bookkeeper to watch over your accounts. It doesn’t matter who that is but they must be trained as a bookkeeper! Not everyone can do bookkeeping and almost nobody can do it unless they have been trained. The founder of Bedrock Business Builders is a CPA and has been successfully teaching individuals bookkeeping for over twenty years. Joe has been utilizing his own remote bookkeeping system to train and oversee his staff of bookkeepers since 2004. Learn how to do your own bookkeeping or have one of your staff become a Bedrock Bookkeeper in as little as 30 days!