Hiring the Wrong Bookkeeper can Destroy your Business! - Part 2

In the last article, we talked about how bad bookkeeping can get you in trouble with auditors, leave your financial records in chaos, and worst of all, hurt your business's credit and profitability.  

As a business owner, you may be tempted to avoid this possibility altogether by doing the books yourself.  But this, too, can cause you trouble.  In fact, you might even be "the wrong bookkeeper" for your business!  

I want you to have the information you need to protect yourself, hire the right bookkeeper and be more profitable.  

But how do you know if your bookkeeper is heading your company towards danger?   Or worse, if he is helping himself to your hard earned cash?  Here are ten warning signs:

1. Your accounting records are a mess.  

2. Your bank reconciliations, accounts receivable or accounts payable show a different balance than your general ledger or financial statements.

3. Your bookkeeper's office or work area is so disorganized, no-one can tell the status of the work.
 
4. Your bookkeeper tries to keep others from knowing what she does or how she does it. She gets upset or defensive when your Accountant asks questions.   

5. Your bookkeeper never takes any time off.  He continually takes files and company records home to work on them or works in the office when no one is around.

6. Your customers often complain that payments they made were not credited to their accounts.

7. Your bookkeeper has asked for signing authority on your company cheques.

8. You receive frequent tax delinquency notices that your bookkeeper explains as government error.

9. Your bookkeeper makes frequent telephone transfers from your bank accounts or credit lines.

10. Your bookkeeper's lifestyle doesn't seem consistent with their earnings.

If your bookkeeper is showing one or more of these ten signs, don't panic!  Chances are good that there's a reasonable explanation. For example, if you notice that your accountant's lifestyle doesn't seem consistent with their earnings, she could have inherited a sum or money.  If you notice that your bookkeeper's office is disorganized, he could simply be one of those messy types.  

But don't ignore the signs, either.  If you notice any of these ten warning signs, or even feel that "something just isn't right," take action now!  Talk to your Accountant and carefully evaluate the situation.  Even if you don't discover anything dishonest or sloppy, you may find you need to add some more financial controls for your company.

But enough about bad bookkeepers.  In the next article, I'll show you how a good bookkeeper can save your hard earned money.  Because I want you to be able to relax, concentrate on your business, and be confident that your bookkeeper is one of the good guys...