3 Questions You Should Ask Your Bookkeeper
If you’re running a business, having a bookkeeper is vital. You need an expert who can make sure all of your budget is under control and keep track of your spending. If you have one, are you sure you’re making the best use of them? If you’re underutilizing your bookkeeper, you’re missing out on a lot of potential. According to Dragon Financial, a Portland, Oregon based company that offers financial advice, here’s some things you should ask to avoid underutilizing your bookkeeper.
1. How Often Do We Need To Meet?
How often are you meeting with your bookkeeper? If the answer is “once a year at tax season,” you are not making the most of your assets. Meeting only once a year means your bookkeeper gets all of your yearly financial details all at once. It leaves them in a rush to get your taxes prepared and more prone to making mistakes. You should ask your bookkeeper how often they need to meet with you to keep up to speed on everything. Generally, once a quarter works fine, but your bookkeeper might be able to do more, or if they’re a 3rd party bookkeeper, might not be able to manage once a quarter because of other obligations. Ask and find out what they feel will work best.
2. Where Is My Money Going?
Managing your business’s cash flow is an important part of keeping your business alive. When you meet with your bookkeeper, you should ask questions about your cash flow. When they have all the data, they can tell you what percentage of your income is going to what expenses and can analyze the return on investment. With this knowledge, you can make better decisions about what to spend on. You may find some of your expenses aren’t profitable enough to be worth it. Others will be profitable enough to be worth doing more with. Be sure to ask for the fine details. A good bookkeeper can also provide sound financial advice on where to spend your money when they have the data.
3. How Can My Business Save More Money?
Having a business savings plan is an important part of any business. It’s strange then, that so many companies neglect it. They get so focused on the day to day expenses that they forget to prepare for the future. Your bookkeeper can help you avoid this problem. Ask your bookkeeper for advice on the best way to save money for your business. This will help you avoid bankruptcy or collapse when unexpected hard times hit.
Don’t Underutilize Your Bookkeeper
Your bookkeeper is more than just a tax accountant. Your bookkeeper has access to all your financial records. They know your company’s cash flow. If they’re good at their job, they will analyze the data and can use it to provide you with good insight. If all you do is send them documents at tax season, you are really underutilizing your bookkeeper. Avoid this trap by meeting with them and discussing your financial situation. By asking these questions, you can make the most of your assets and keep your business going strong.