Is your Melbourne Bayside bookkeeper an asset or a liability? The 4 most important red flags

February 9, 2024

Here’s a question that we would like to ask you: is your Melbourne Bayside bookkeeper an asset or a liability?

We’re sorry if this question caught you off-guard, but it’s an important question that needs to be asked. The answer could make a big difference to your business’ success!

And if it turns out that your bookkeeper isn’t meeting expectations or is out of their depth, you’ll need to take action.

How can you tell if your bookkeeper isn’t up to the task? Luckily for you, our Bayside bookkeepers at Maximum Business Solutions are here to help you figure things out.

So, what are some of the warning signs that you should watch out for and critically assess?

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Red flag: your bookkeeper is falling behind

Your business’s financial health and wellness are important factors when it comes to making crucial decisions for your business.

With that in mind, it’s imperative that your bookkeeper work on your books in a timely and efficient manner.

So what if your bookie isn’t able to give you the answers you want when you need them (read: now)?
Occasionally, your bookkeeper might have a lot on their plate or need more time to correct errors. These are normal parts of the bookkeeping process – the problem arises when they consistently fail to fulfil any of your bookkeeping requirements or cannot keep up with your and your business’ needs.

If you can’t trust your bookie to deliver the goods, that’s a huge red flag that spells disaster for your business.

Take our advice: start shopping around.

Red flag: is your bookie a hopeless communicator?

For most small businesses, your bookkeeper is your “go-to” person when it comes to all things financial. They don’t just report – in many cases, they’ll be your guide, too; holding your hand and guiding you through the financial aspects of your business.

Of course, a guide that doesn’t give you anything to work with isn’t much better than stumbling around blind!

Red flag: does your bookkeeper know what they’re doing?

Bookkeepers are only human – a mistake might slip through undetected from time-to-time.

However, if this becomes a pattern… well, to say that this is a “problem” is underselling it!

Bookkeeping deals with sensitive information related to your business’ finances and accounts. You need this info to make good decisions – it must be accurate.

Any error in your reporting can be costly.  And when we say costly, we’re not just talking about the financial repercussions! Bookkeeping mistakes take time and effort to fix, factors which could have been spent elsewhere.

Red flag: on a related note, what happens if your bookkeeper doesn’t know something?

Bookkeepers and accountants are held to high standards – if they don’t know or can’t do something, they are required to tell you and pass that job on to somebody else.

Maybe your bookkeeper is a bit rusty with certain bookkeeping practices.

Maybe they were never formally trained on some tasks.

It could even be that what you’re asking of them falls under the umbrella of accounting, not bookkeeping.

Good bookies are honest about what they can and can’t do. They’re willing to say “I cannot do that” and refer you on to someone (like your accountant) who can.

Some bookkeepers forge ahead out of pride, arrogance or the allure of higher fees. In many cases, this can lead to mistakes and poor decisions as a result.

Don’t be one of these victims. If you catch wind that your bookkeeper is trying to do things they simply can’t, pull the plug and find someone else instead.

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Signs of an asset bookkeeper

While it’s important to be aware of red flags that may indicate issues with your bookkeeper, it’s equally essential to recognise the positive signs – the “green flags” – that signify you have a trustworthy and competent professional managing your finances. Here are some green flags to look out for:

Proactive communication

Just like what we talked about as a red flag in communication, a reliable bookkeeper initiates regular communication to provide updates on your financial status, discuss potential strategies for improvement, and address any concerns or questions you may have. 

Your bookkeeper should bring their experience and ideas to the table to help enhance and develop your business. If they identify issues with your account, they help to address and solve these situations before they become major issues.

That requires communication. Even if things are going perfectly, a good bookie will still keep you in-the-loop with regular updates and reports.

Do you always have to bug your bookkeeper for information? That’s a surefire sign that your bookie is a liability to your business!

Wondering how your bookkeeper in Bayside can help you solve common bookkeeping problems? Click here

Committed to continuous growth and innovation

An asset bookkeeper is committed to continuous improvement, staying ahead of the curve with ongoing learning and innovation. 

They embrace new technologies, tools, and methodologies to streamline processes, enhance efficiency, and deliver maximum value to your business. 

Finds solutions for your needs

Recognizing that every business is unique, a reliable bookkeeper takes a personalised approach to meet your specific needs and goals. 

They take the time to understand your business’s challenges, opportunities, and objectives, providing customised solutions that align with your vision for success.

Looking for stress free tax tips from your Bayside bookkeeper? Click here

Choose a Melbourne bookkeeper who will always be an asset; never a liability!

Contact Maximum Business Solutions today!

These are just some of the signs your bookie might actually be a liability. By no means is it exhaustive – if you notice any of these however, it might be a good idea to assess your current situation and seek out a more effective solution.

As a business owner, you always want to the best for your business. That’s why you need a bookkeeper in Melbourne that values you and delivers a valuable service.

If you’re looking for a Melbourne bookkeeper, get in touch with Maximum Business Solutions today.

Offering various bookkeeping solutions for small and medium businesses, you can trust us to take care of you and your bookkeeping requirements.

Give us a call today on (03) 9589 0128, or get in touch online if you’d like to organise a consultation over a coffee.