Skipping right to the end here… Who makes sure you stay on track financially? YOU DO! (Sorry to be the bearer of bad news).
This topic came up for us at The TaxForce a couple of weeks ago. One of our clients told us about how she had outsourced a bookkeeper. She was so excited about it because she was ready to be kept on track with her finances.
Here’s the problem with that… A bookkeeper’s job is not really to keep you on track. Their job is to keep track of your books!
(If you’re looking for more info on HOW to track your expenses, check out this post).
Now, we’re not saying you shouldn’t hire a bookkeeper. If you need some help keeping everything organized, it can definitely be very helpful. What we are saying is that you need to set your expectations properly.
A bookkeeper will track invoices and receipts in order to ensure that everything is categorized properly. You may be able to speak with your bookkeeper and set that expectation that you really need more guidance than that… But keep in mind that if your bookkeeper is looking after multiple clients, they most likely don’t have the time to be “keeping you on track”.
If you do need a higher level of guidance than what a bookkeeper typically offers, accounting firms can help with these types of questions. For example, actually looking at the numbers, breaking down what they mean and explaining how different decisions may affect your business. However, it’s still very important for you, as the client, to set the expectation for what you’re looking for out of the relationship.
Things to Think About
How often do you want updates or want to be going over the numbers with someone?
When do you want bills paid? This is important to consider for cash flow.
Are you looking for someone to track things for you or are you looking for guidance making spending and business decisions?
If you want to learn more about the difference between keeping track of info and being kept on track as well as how you can set those expectations, give this video a watch! Remember to click the like button if you find it helpful and to subscribe to our channel for weekly videos!