Many business owners rely on bookkeepers to maintain their accounting records throughout the year, ensuring everything is in order for their accountant at year-end. While this is a common practice, it’s important to ask yourself: Do you truly understand the state of your records? And could poor bookkeeping be causing unnecessary extra work for your accountant?
Understandably, your primary focus is running your business - not reviewing how your bookkeeper handles the records. But it's worth taking a moment to consider whether your bookkeeping is being managed effectively.
With the introduction of Making Tax Digital, we’ve seen a significant shift toward the use of technology in bookkeeping. Cloud-based accounting software such as Xeroand QuickBooks have made it easier for businesses to maintain accurate electronic records. However, adopting software alone doesn’t guarantee quality bookkeeping.
On a recent job, we encountered a situation where the bookkeeper had failed to use the accounting software properly, resulting in:
Over 800 unpaid transactions, dating back to 2020
Incorrect bank balances
Credit notesthat were never allocated
Paymentswrongly posted "on account" instead of against specific invoices
Despite blaming the software, the real issue was a lack of understanding and diligence. This led to disorganised records that the accountant ultimately had to correct - essentially redoing much of the bookkeeping.
As a business owner, you don't need to be a bookkeeping expert. However, it is crucial to ensure that your bookkeeper is both competent and up to date with current practices and technology.
At Forrester Boyd, we offer an Accounting Solutions Health Check to help you gain confidence in the accuracy and reliability of your financial records.
If you’re interested in peace of mind, or would simply like a second opinion on your current setup, please get in touch. We’d be happy to work with you to ensure your systems are working efficiently - for both you and your accountant.
All data and figures referred to in our news section are correct at the date of publishing and should not be relied upon as still current.
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