Characteristics of a Great Bookkeeper
Aug 15, 2024
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In my earlier blog post on the Bookkeeper's Super Power, I discussed the factors that differentiate mediocrity from excellence. In today's blog, I will further explore by highlighting 3 traits of a bookkeeper that will make them stand out among their peers.
Responsiveness
During a recent meeting with a potential client, he shared his dissatisfaction with his current bookkeeper. He explained that the bookkeeper is unresponsive to his calls and emails, and sometimes takes a considerable amount of time to reply. Additionally, he was caught off guard by a sudden tax bill from the bookkeeper, highlighting the importance of establishing clear communication expectations from the beginning.
Excellent bookkeepers recognize that being responsive can give them a competitive edge. While it may seem straightforward, the industry often lacks this quality. Given the sensitive financial data entrusted to bookkeepers, it is crucial to promptly address client inquiries.
Bookkeepers are often busy managing various clients with different deadlines. Despite their busy schedules, exceptional bookkeepers take a proactive approach by clearly outlining expectations at the beginning of their engagement. They inform clients about their preferred communication methods and response times, as well as establish what qualifies as an emergency and the corresponding communication procedures. By establishing these expectations early on, both the client and bookkeeper are in agreement regarding responsiveness standards.
Trusted "Advisor"
The term "trusted advisor" is widely known and desired by every company for their clients. While hesitant to use this term due to its overuse, I believe there is a valuable lesson to be learned here.
There is a consensus that a certain level of trust is established between a business and its customers. However, in the field of bookkeeping, trust plays a crucial role in fostering a strong business relationship, given the access bookkeepers have to highly sensitive financial data. Trust is considered a fundamental requirement in the bookkeeping industry. It may open the door for a bookkeeper, but it might not be sufficient to maintain their position in the long run.
In this post, I want to emphasize the crucial role of an "advisor." An advisor is more than just someone who carries out transactions, reconciles statements, and sends financial reports. They provide advice, review reports, identify areas of improvement and concern, forecast future financial needs, and collaborate with business owners to enhance revenue and efficiency. Furthermore, an advisor offers strategic guidance in addition to handling day-to-day tasks. It's worth noting that excellent bookkeepers can also function as advisors.
Perspective
Exceptional bookkeepers offer practical insights. Bookkeepers with experience in small businesses possess a comprehensive understanding of running such enterprises. Those who have worked in high-growth startups comprehend the necessary sacrifices for early success. Their insights enable them to provide valuable advice as mentioned in the preceding point.
Experience brings perspective. A bookkeeper who has spent 2 years working in a small business will not possess the same extensive perspective as one who has worked in similar settings for a decade. While bookkeeping is a distinct skill that can be acquired with dedication, the perspective gained from hands-on experience cannot be attained through textbooks or online courses. It necessitates years of diligent effort to earn.
If you have young children, you can probably relate to this. Let's be honest, first-time parents are often inexperienced. Despite reading numerous books and seeking advice from experienced parents, they can never truly anticipate the reality of bringing a newborn home and looking after them. A different outlook emerges when the second child arrives. Although every individual is unique, parents of a second child now have a reservoir of experience to guide their parenting decisions. The same principle applies to small businesses; each one is unique, yet there are commonalities that enable an experienced bookkeeper to draw upon a wealth of knowledge gained through practical experience.
The presence of these 3 qualities in a bookkeeper could determine whether your business just survives or actually flourishes. It is crucial to seek out these attributes in your future bookkeeper, as this choice could have a long-lasting impact on your business.
