9 Questions You Should Ask Your BookkeeperLets Get Started
AUTHOR: Kim Miller
Your bookkeeper shouldn’t just be someone who posts information to your accounting software and spits out reports. Your bookkeeper should be a valuable resource to you in helping you run your business. Here are 9 essential questions you should ask your bookkeeper:
1. Can we review my financial statements on a regular basis?
You and your bookkeeper should be reviewing your financial statements at least quarterly, sometimes monthly, and have an involved conversation about what has happened.
2. Is my business up to date with government compliance?
Your bookkeeper should always be on top of deadlines and ensure that documents are filed on time. HST, source deductions, income tax instalments, WSIB (Ontario), and EHT are all samples of standard government compliance items that have due dates. Missing filing due dates could cost your business hundreds or thousands of dollars a year.
3. What are some topics I should consult with you about on an ongoing basis?
A skilled bookkeeper will get to know you and your business well enough to regularly keep you aware of any factors that could affect your bottom line.
4. How are you preparing for tax season?
Your bookkeeper should have all financial reports ready to hand over to your accountant so that taxes can be filed promptly to avoid penalties.
5. How can I minimize my taxes?
Ask which tax credits and deductions you should claim and if there are any new tax laws you should take advantage of to maximize write-offs.
6. How can I improve my cash flow?
One of the most important tasks for a bookkeeper is monitoring the balance of revenues to expenses. They should be able to suggest improvements to better manage cash flow, reducing inventory or collecting receivables.
7. What security measures are in place to make sure our accounting data is protected?
Losing your financial data to a virus or a computer crash could spell catastrophe. Your bookkeeper should be employing security and backup measures to protect your data.
8. What are some tips you can give me to streamline my bookkeeping process?
A good bookkeeper will make recommendations to help streamline the bookkeeping process which, in turn, will save money.
9. Can you see where we might be wasting money?
Your bookkeeper most likely knows your business finances better than you do and might be able to suggest ways you can save money.