Finding a Great Bookkeeper

Over the past few months I have met a lot of people in my area who are looking for a reliable and honest bookkeeper.  I have heard almost all of them state that they had a hard time finding a "good" bookkeeper.  Some of them had even been burned by there previous bookkeeper.  Here are some tips to help you find a bookkeeper that is right for you:


1.  Finding a Reliable Bookkeeper:  When hiring an outsourced bookkeeper there are a few "red flags" to watch out for.  First, ask the bookkeeper if they have a full or part-time job outside of their bookkeeping business.  Some bookkeepers are employed and decided to start a bookkeeping business to earn some extra cash.  Be wary of this situation.  You want to make sure that your bookkeeper's first priority is his or her clients.  If your bookkeeper has an employer, chances are that their job will always be their first priority and you may have a hard time reaching them when you need to.  The other "red flag" to watch out for is stability.  You want someone who is local and has roots in their community, someone who isn't planning on moving any time soon.  Ask the bookkeeper how long they've lived in the area and how long they've been in business.  Make sure that your bookkeeper has a healthy and successful business, otherwise they may choose to close up shop and decide to get a full-time job down the road.

2.  Finding an Honest Bookkeeper:  When hiring a new bookkeeper, always ask for references.  Make sure the references are current client's of the bookkeeper and make sure you can find these businesses on the Internet.  I have reviewed other bookkeeper's websites and have checked out their list of references.  I was surprised to see that many of the business references they listed did not have websites (or any other web listings for that matter).  This makes you wonder if these are actual businesses. 

3.  Find a Knowledgeable Bookkeeper:  One of the complaints I have heard most often is that some bookkeepers overcharge their clients.  This happens when a bookkeeper performs a task that should only take an hour or two but ends up billing the client for several hours of work.  The cause of this could be that the bookkeeper is dishonest or the bookkeeper is just slow.  Maybe the bookkeeper is slow because they are new to bookkeeping and are learning in the process or maybe they are slow in nature.  Either way, you shouldn't have to pay for your bookkeeper's short comings.  When hiring a new bookkeeper ask them how long it usually takes them to reconcile a monthly bank statement or set up a new company file and chart of accounts in QuickBooks.  Every client is different so it can be hard to tell a new client how long it will take to reconcile their accounts but the bookkeeper should have an average amount of time from their other clients.  I also recommend asking the bookkeeper several questions to test their skill level.  If you aren't sure what to ask go on the Internet and search "questions to ask a bookkeeper'.  You will be directed to several sites with lists of questions to ask.


Conclusion:  When hiring a new bookkeeper you want to make sure that you hire someone who is knowledgeable, reliable, and honest.  Don't settle for an "okay" bookkeeper.  Most counties have dozens of bookkeepers in the area.  Find a "great" bookkeeper, someone that is good match for you and your company. 

QuickBooks Shortcuts

QuickBooks has MANY shortcuts available.  Here are is a list of some of those time saving shortcuts:

 

 ANYWHERE IN QUICKBOOKS

CTRL+A = Open Chart of Accounts

CTRL+R = Use Register

CTRL+W = Write checks

CTR+-SHIFT+Y = Opens “Set Up YTD Amounts Wizard” (from Help>About Intui QuickBooks...)

CTRL+F = Find

CTRL+J = Open customer center

CTRL+I = Create Invoice

F2 = Opens QB product info window

F3 = Search

 

WHEN IN A TRANSACTION (for example: an invoice, bill, or journal entry)

CTRL+N = New transaction

CTRL+E = Edit transaction

CTRL+D = Delete transaction

CTRL+H = Open transaction History

CTRL+M = Memorize transaction

CTRL+Q = QuickReport (also available in Chart of Accounts)

CTRL+P = Print

We Are Now Serving San Francisco

Kerr Bookkeeping Services offers full-charge bookkeeping services to businesses in Marin, Sonoma, and San Francisco. This includes: Sausalito, Mill Valley, Tiburon, Corte Madera, Kentfield, Larkspur, Greenbrae, Ross, Fairfax, Lagunitas, Woodacre, San Anselmo, San Rafael, Terra Linda, Marinwood, Novato, Petaluma, Cotati, Rohnert Park, Sonoma, Windsor, Healdsburg, Sebastopol, Santa Rosa, and San Francisco.

We also offer some remote bookkeeping services so give us a call today.

- Posted using BlogPress from my iPhone

Location:San Rafael, Ca

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Marketing Your Company (for FREE) Online

Hi Everyone,

A question that I see (and am asked) time and time again is… “How do you generate new clientele?”  For most of us small business owners, this question is crucial.  After all, how to we develop strong marketing campaigns and strategies without breaking our bank? 

When it comes to marketing, I use two methods to bring in new clients.  The first is NETWORKING.  The second is by marketing my company online.   When it comes to online marketing the goal is for customers to be able to find your website by doing generic searches, i.e. “San Francisco Landscaping” or “Arlington Wedding Photographer”, but you don’t want to spend a ton of money on SEO marketing…so what do you do? 

First Step:  Get Your Company’s Name Out There

1.       Create a website-  If you haven’t already done this, do this first BEFORE you start advertising your company online.

2.       The three most popular search engines are: Google, Yahoo, and MSN.  In order for your website to appear in searches you need to create accounts with each search engine provider- 

a.       Google Plus-  www.google.com/+/business/

b.      Google Maps & Google Local-  www.google.com/placesforbusiness

c.       (MSN)- Bing Business Portal-  www.bingbusinessportal.com/

d.      Yahoo Local Business-  http://smallbusiness.yahoo.com

3.       Install Google Analytics-  www.google.com/analytics/

4.       Create accounts for your business using social media:

a.       Facebook-  www.facebook.com

b.      LinkedIn- www.LinkedIn.com

c.       Twitter-  www.twitter.com

5.       Create accounts for your business using other (free) sites:

a.       Yelp-  www.yelp.com

b.      Manta-  www.manta.com

c.       Merchant Connect-  www.merchantconnect.com

d.      Patch-  www.pacth.com

6.       Create a blog-  Make sure that you update your blog frequently and that your blog contains informative, useful, and unique ideas. 

a.       Blogger-  www.blogger.com

b.      WordPress-  www.wordpress.com

c.       Wix-  www.wix.com

 

Second Step-  NETWORK

One of the most common ways clients will find you is through word of mouth.  When I started my bookkeeping business I reached out to as many people as possible.  Here are some steps to take:

1.       Join local BNI (although membership dues to apply)-  www.bni.com

2.       Join local Chamber of Commerce

3.       Join local networking groups.  You can find lists of groups on your area and the meeting times of those groups on certain websites:

a.       MeetUp-  www.meetup.com

b.      LinkedIn-  www.linkedin.com/directory/groups/

c.       Networking For Professionals-  http://networkingforprofessionals.com

 

4.       Join Groups & Forums Online-  Answer questions from other members.  This will draw people to your profile and website. 

a.       Yahoo Answers-  http://answers.yahoo.com/

b.      Manta-  http://connect.manta.com/

c.       Join other groups and forums that pertain to your type of business

 

5.       Send post on Facebook with link to your website and business Facebook page.  Ask friends and family to click the “Like” button on both

6.       Email friends and family that aren’t on Facebook (or don’t log into FB that often)-  Let them know that you started your own business and ask them to keep an ear out for people needing or wanting what type of service or goods you sell.

7.       Create brochures or flyers (if you can afford it) - Stop by local businesses and ask to speak to the manager.  Ask the manager if you can leave a flyer in the window or brochures by the front desk.  Yes, some businesses will say no, but some will say “yes”.  Remember, you are trying to reach out to as many people as possible.  I use VistaPrint.com for all of my custom printing needs.  I have looked around and VistaPrint seems to be the cheapest (and the quality if great).

8.       Offer existing clients a referral fee/discount for referrals they bring in that turn into sales.

 

I hope this helps you get started.  Marketing and networking take a lot of time and energy but I think that the more time and energy you put in, the greater the outcome will be.

Good luck everyone.  Feel free to ask me any additional questions by clicking “Comment” below. 

General Accounting Principle

Accounting is based on a simple formula:  Assets = Liabilities + Equity

Here is how it works:  Let’s say you wanted to open a new business selling t-shirts. What is one of the first things you would need?  Equity or starting capitol.  You decide to write up a business plan and investment $10,000 into your new company.  You would then write a $10,000 check made payable to your business.  Here is how the accounting formula, using your new business, now looks:

Assets	Liabilities	Equity
Bank - $10,000	$0	$10,000

  Your asset and equity accounts changed.  Your liability account did not.

Now you have capitol, what is the next step?  Before you start selling t-shirts you need to buy some t-shirts to stock in inventory.  You decide to spend $1,000 on new t-shirts.  Now, let’s see how your business looks:

Assets	Liabilities	Equity
Bank - $9,000	$0	$10,000
Inventory - $1,000

In this scenario, only the asset account changed.  The bank account had $1,000 deducted from it and the inventory account had $1,000 worth of t-shirts added to it.  The liability and equity accounts stayed the same.

Now you have inventory, what is the next step.  Are you planning on selling t-shirts out of your car?  Of course not.  You decide that a store would work best for your type of product.  You look around and find the perfect building.  Unfortunately it costs $15,000.  Since you only have $9,000 in the bank, you decide to purchase a loan.  (In this example we’ll assume that you are financing the entire $15,000 with zero percent down.)

Here is how your business now looks:

Assets	Liabilities	Equity
Bank - $9,000	Bank Loan - $15,000	Starting Capitol - $10,000
Inventory - $1,000
Buildings - $15,000

Now let’s total everything up.  Your assets total $25,000, your liabilities total $15,000, and your equity totals $10,000.  Are you in balance?  Yes!  $25,000 = $15,000 + $10,000.

This was just a basic example of how the accounting formula works.  We will explore additional accounts (such as expense and income accounts) and how debits and credits work into the equation in a future post. 

How to Prevent Fraud and Theft

I belong to many bookkeepers groups and one topic I see time and time again is fraud and how it is affecting businesses.  When hiring an out-sourced bookkeeper, many business owners are worried about handing the company's financial responsibilities over to someone they don't know.  What they don't realize is that fraud and embezzlement can also occur with a full-time employee just as much as it could with an out-sourced bookkeeper.  In fact, most of the news articles I read about fraud, theft, and embezzlement are perpetrated by employees.  Here is an example... I recently  read an article about a woman who worked as a controller for an Acura dealership in Pennsylvania.  Here is the first paragraph of that article:

"Patricia Smith, the former controller of an auto dealership in Pennsylvania, is headed to jail after embezzling $10 million from her former boss in a stunning case of a trusted employee looting the business then squandering the cash on luxuries."- ABC News (link to article below) http://abcnews.go.com/Business/employee-scams-car-dealership-10m/story?id=16604125

As a bookkeeper and business owner I am not only shocked that someone could do that but that it went on for seven years before it was detected. 

The key to preventing fraud, theft, and embezzlement is to have proper checks and balances in place.  Here are steps you can take to protect yourself and your business:

1.  Have a separation of duties-  The person who receives cash should not be the same person who takes it to the bank, the person who cuts checks should not be the person who signs them, and so on.

2.  Audit your books at least once a year by an outside and experienced person.  You should also run monthly "Audit Trail" reports in QuickBooks.

3.  When a mistake is made on a check, have your bookkeeper "VOID" the check in QuickBooks (instead of deleting the check).  Make sure your bookkeeper keeps a copy of every check he or she voided.  Often check the check sequences in your accounting program to make sure that all checks are accounted for.  If a check number is missing contact your bookkeeper immediately.

5.  Make sure you receive and review the monthly bank reconciliation detail and summary reports.  These reports will show every cleared and uncleared transaction for that month.  Go over this report with your bookkeeper so he/she can explain why some transactions may not have cleared yet.

6.  Review the images of checks that cleared on your monthly bank statement (you are looking at who the checks were made out to).  If your mailed bank statement does not include images of cleared checks, you can go to your bank's website and print a statement with check copies.

7.  At least once a month, check the journal entries your bookkeeper made.  Look for any unusual entries.  Some of the usual entries are for prepaid insurance, accrued expenses, depreciation/amortization, payroll taxes, etc...

8.  In QuickBooks, set a closing date and password.  This prevents users from making changes in previous periods by making them enter a password before the transaction is saved.


I hope these steps will help you.  Our goal at Kerr Bookkeeping is to help our client's acheive their goals.  Sometimes that goal is to obtain a piece of mind.  That is where this post come in.

For more information please visit our website www.kerrbookkeeping.com or send us an email at info@kerrbookkeeping.com.