What Makes a Bad Bookkeeper?
Do you have a bad bookkeeper?
Let me explain. I’ve experienced clients provide feedback on their prior bookkeepers and regardless of the problem or situation it all trickled down to having a bad bookkeeper. What’s a bad bookkeeper?
A bookkeeper that “let’s” you do [insert sketchy workflow or false categorization here]
A bookkeeper that accepts a task that is out of scope [filing corporate taxes or perform formal audits]
A bookkeeper that makes things “look better” or “go away”
These are just a handful of things that make a BAD bookkeeper.
Bookkeepers CANNOT provide financial assurance. What does this mean? Bookkeepers cannot verify and authenticate financial information as an auditor would.
Bookkeepers CAN ensure accuracy in their data entry based on the information received without making assertions. What does that mean? Bookkeepers can share valuable insight without forcefully imposing the statement, suggestion or opinion.
Bookkeepers CANNOT carryout tasks that need to be completed by an individual eligible to practice before the IRS. Not only is this unethical with possible penalty, the IRS clearly outlines who is eligible to represent a business on their behalf. Check out the IRS rules for Power of Attorney, POA and other authorizations here.
Bookkeepers CAN assist in preparing tax-related documents such as 1099 forms, sales tax filings or other miscellaneous taxes that require a return. To file or prepare these documents, the preparer does not need a license or identification number.
Bookkeepers SHOULD NOT falsify financial information under any circumstance. This is against the law and is considered fraud.
So why hire a bookkeeper? A good bookkeeper can alleviate the tasks of managing financial information and COLLABORATE with your tax professional to keep businesses up to date, compliant, and accurate. Mikaesbooks is here to help!
This blog is for educational purposes only. Mikaesbooks is not a tax advisor or legal professional. Seek an Enrolled Agent, EA or a Certified Public Accountant, CPA, or other tax professional for more information.
