Is your office manager your bookkeeper as well as having their own duties as an office manager? How does this affect your profit? We’re going to dive right in and see what you may be missing out on by having your office manager as your bookkeeper instead of hiring a bookkeeper to be on top of your finances and business.
Are you a small business owner that employs an office manager to do the bookkeeping? Do you think this manager is great because everything that is said about the books sounds just like they know what they are doing and at least you don’t have to?
Just because your office manager knows more than you about bookkeeping, doesn’t necessarily mean it’s being done right.
You need to take an active interest in the financial aspects of your business. Don’t sit back and leave it all to the office manager. It’s not fair to them and your business could end up in a serious financial situation.
The basic activity of bookkeeping is ensuring that all the financial transactions are classified to the correct account on the chart of accounts. Choosing the right account is wholly dependent on what each transaction is. Transactions classified to the wrong account will cause your accounts and reports to be wrong. These are reports that you would take to the bank to get that important loan that you are sure can be paid off based on the information provided by your trusted office manager.
Professional Bookkeepers are educated, experienced and will have a complete understanding of where in the accounts to put each transaction. But do you? Does your office manager? Your office manager is more qualified to run the office to ensure the daily success of your business and client satisfaction.
Do you or your office manager know the answers to the following?
- Does a payroll service go to wages & salaries?
- Does the purchase of a vehicle go to vehicle expenses?
- Do the payments against a loan go into the loan expense account?
These are just some of the things a professional bookkeeper will know how to handle.
If you have concerns about how your books look; talk with a professional bookkeeper and ask them to review your financials. They will be able to review the accounts ensuring all has been classified correctly (they have the expertise in doing this) and then produce reports and explain to you how your business is doing financially.
If you want your office manager to handle the daily bookkeeping operations, talk with your professional bookkeeper and have them implement some training. Meeting monthly with your professional bookkeeper will help you keep things in order, up to date and keep you informed of your business financial health.
Looking for more bookkeeping information or tips? Check out our post on How to Have a Successful 4th Quarter