Two Ways to Spot a Bad Bookkeeper

This is not a comfortable post topic, because I’m writing about the worst-case scenarios for my own profession.

 

Most bookkeepers are honest, knowledgeable, and hard-working.  But as in any industry, there are always the few proverbial “bad apples” out there.

 

If you decide to work with a bookkeeper, whether you hire an employee for bookkeeping or work with an outsourced bookkeeping firm, here are two statements that serve as glaring warning signs:

 

“I’ll need your login and passwords for the financial accounts.”

 

You should NEVER (and yes, that word requires all caps in bold and italics) share your personal access information for any financial or business accounts with anyone, including a bookkeeper.

 

You can authorize a separate user access for the bank accounts if the bookkeeper is responsible for paying bills.  If more than one person uses the same login and password, it will be difficult to determine responsibility if there’s any suspicious activity during a login session.

 

If the bookkeeper’s duties do not require access to business funds, then don’t provide it.  Instead, you can authorize the bank to set up a read-only access for the bookkeeper.  Read-only access allows the bookkeeper to view the online information and run specific reports without allowing access to the funds.

 

“You don’t need to access the accounting software – I’ll send you what you need when you ask for it.”

 

This is YOUR business, and you have a right to the financial information at any time.

 

You can avoid this problem by purchasing the accounting software or subscription and designating yourself as the master administrator, then creating a separate user account for the bookkeeper.  If you hire with an outsourced firm, you can provide the firm with an “Accountant Access” login.

 

However, if the outsourced firm pays for and manages the accounting software or subscription, you should require the firm to provide you with a full-access user account.

 

In short, prospective bookkeepers who utter either of these two statements should be avoided.  Run, don’t walk, away!

 

Questions or comments?  Let us know!