In the last blog post we talked about getting away from the DIY method of bookkeeping. We discussed the importance of finding a skilled bookkeeper to assist in the important needs of the financial side of the business. This saves time and frustration and helps you keep the more of the money you are making.
It’s not enough just to have a bookkeeper hired. Communication with this person is vital to the success of this relationship. Without it, things can fall apart fast. Our finances can hold some important and very personal information about our lives. Letting someone handle this part is not always an easy thing to do. The bookkeeper should be kept in the loop for all financial decisions. Open and honest communication with your bookkeeper is key to the financial success of your business.
Regular meetings, emails, and phone calls can all help with the communication process. Good advisory bookkeepers will provide you with monthly financial reports. These reports should include an income statement, a balance sheet, and a statement of cash flows. It is imperative that your bookkeeper is capable of explaining and interpreting each report for you. These three reports will show you where your business is and where it needs to go next.
So, when you are considering hiring a bookkeeper you should look for someone who is knowledgeable about their work, motivated to be consistent and up to date with your financial information, and effective in communicating the work they are doing. Good communication goes both ways. You and your bookkeeper must have a high level of trust and understanding with each other because sometimes hard conversations must happen within the context of finances. A good bookkeeper should be able to handle these with professionalism and grace.