My Bookkeeper's Numbers Don't Add Up

Are you wondering if your company’s bookkeeper is on the up and up?

Have numbers that aren't adding up? Want to make sure you aren't going to run into this problem before you hire someone?

There are many ways to keep a checks and balances system on your bookkeeper.

Bookkeeper Red Flags

There are a few things that can give you a moment to stop and wonder about your bookkeeper.

Here are some red flags that could signal there is a problem with your bookkeeper or their services:

● Suspect transaction timing - This includes those entries that should fall on a specific day, month, or season and are aren't.

● Transactions that are too "neat" - These are including entries that are frequently in a rounded amount. It is suspect that an invoice always comes in at a rounded amount.

● Third-party transactions - Are you seeing utility payments going to a place that isn't the direct utility company? Third party transactions are ones to scrutinize.

● Odd transaction frequency - Monthly bills should only be entered once a month, are they being shown as more often? Did you suddenly go from an average of ten weekly transactions to thirty? Any change in the normal frequency or large discrepancies like this should be verified and double-checked.

Other Red Flags To Suspect

There are a few more things that could be deemed questionable to many companies. Here are some additional red flags to pique your interest.

Do they let you oversee their work? Check their statements? If they seem offended that you'd question their work, then perhaps you should question their work. Look for signs like:

● Nervousness is also a big red flag. Do they get bothered when you just pop in unexpectedly? Get flustered when you ask them pointed questions?

● Do they want to save you money and time by doing your accountants job or other employees? Especially fetching the company's mail or signing for packages? This is a red flag, even though it may just be an overzealous new worker trying to get in your good graces.

● Lastly, have they ever asked to have signature authority so they can sign checks and other items on your behalf? If so, run far and run fast.

Doing a Background Check

Having your bookkeeper go through a background check can help you see if they have a history of fraud or other crimes that could influence your decision to hire.

There are many companies online that can help you do a quick background check to search public records for any red flags on the bookkeeper. You can do this yourself, but it may be too time consuming and worth the money to hire someone from outside the company. Experts can also have better contacts with delving deeper into the bookkeeper's past.

The vast majority of bookkeepers are wonderful and can not only save you time but can also save you money.

However, there are always a few bad apples in every bunch.

Keep an eye out for red flags and be vigilant in listening to that nagging inner voice if you suspect something is wrong. Your company and its finances hang in the balance.