7 Ways to Check if Your Bookkeeper’s Work is All Good
As a business owner, you know that one of the most important aspects of running a successful operation is keeping accurate financial records. After all, how can you make sound decisions about your company’s future if you don’t know where you stand financially in the present? That’s where your bookkeeper comes in.
Your bookkeeper is responsible for maintaining your company’s financial records and ensuring that all transactions are properly documented and accounted for. But even the most diligent bookkeeper can make mistakes, so it’s important for you to know how to verify their work.
Here are seven ways to verify your bookkeeper’s work:
1. Review Bank Statements and Canceled Checks
One way to verify your bookkeeper’s work is to review your company’s bank statements and cancelled checks. This will give you a good idea of what transactions have been made and will help you spot any discrepancies.
2. Review Credit Card Statements
If your company accepts credit cards, you should also review your credit card statements. This will help you catch any unauthorized charges or discrepancies in the amounts that were charged.
3. Reconcile Your Bank Statements
Another way to verify your bookkeeper’s work is to reconcile your bank statements. This process involves comparing your statements to your records to ensure that all transactions are accounted for. This can be a time-consuming process, but it’s worth it to make sure that your books are accurate.
4. Compare Your Financial Statements to Your Records
If you have financial statements from previous years, you can compare them to your current records to look for any discrepancies. This is a good way to catch errors that may have been made in the past.
5. Verify Deposits and Withdrawals
The easiest way to verify your bookkeeper’s work is to review your company’s bank statements and cancelled checks. This will give you a clear picture of all the money that has come in and gone out of your business. If you see any discrepancies, you’ll know right away and can take action to correct them.
6. Review Invoices and Billings
Another way to verify your bookkeeper’s work is to review your company’s invoices and billings. This will help you catch any errors or discrepancies in the way your bookkeeper has recorded transactions.
7. Conduct a Physical Inventory Count
If you have a physical inventory, you’ll want to conduct a count regularly to make sure that your bookkeeper is accurately tracking your inventory levels. This is especially important if you sell products with a limited shelf life.
If you’re ever questioning whether or not your bookkeeper is doing their job correctly, there are a few key things you can do to verify their work. First, take a look at the books yourself and make sure that everything adds up. Second, ask for receipts or invoices for all transactions. And finally, run regular reports to check for any discrepancies.
Of course, you should also build a trusting relationship with your bookkeeper so that you can feel confident in their work. But following these steps will help you catch any mistakes that they might make.
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