We were recently approached by a small firm with an under-performing bookkeeper.
There were some long-term signs he was not up to the job. His office was full of paper, because he had been doing the accounts on spreadsheets rather than using up-to-date technology. That was quite common a decade ago, but I almost don’t come across it any more.
Recently, he went on sick leave, and the full extent of the problem emerged. It took his temporary replacement weeks to make head or tail of the company’s accounts – weeks when the bills were paid late, payroll was delayed and the company’s business nearly came to a halt.
The company owner, who was referred to us by his business coach, claimed to understand the situation “wasn’t ideal”.
But ultimately, he wasn’t willing to upgrade his financial management. He seemed to be in denial…
The problem was, he couldn’t bring himself to replace this staff member, who was both well-liked and had been with his company for some years.
Now, I’m somewhat sympathetic. I believe firmly in loyalty to your team. You must have their interests close to your heart to build a company people want to belong to and work hard for. And I would never, ever advocate treating anyone on your team poorly.
But there is such a thing as misguided loyalty, too – and this was a clear case.
Keeping your accounts in the hands of a single person is always a huge risk to your business, especially once your business reaches £1 million or £2 million turnover and becomes more complex.
There are no checks and balances and no safeguarding in case of mistakes or fraud.
You can only ever have a limited range of expertise and often, the accounts are set up in a way that suits your bookkeeper or accountant – not that suits the business. When they go, your accounts can prove a mystery to everyone else.
This case shows just how horribly wrong it can all go if that sole person is not up to the job. When your finances are not well-managed, it is an existential risk to your business.
Loyalty to an under-performing bookkeeper or accountant jeopardises your business’s long-term future. It’s dangerous to you as owner and it’s unfair to the other employees whose livelihoods are endangered too.
Don’t tolerate this unnecessary risk. Your finances need to be managed by a team who can support you with a range of skills…
Who have the ability to supervise each other and check each other’s work…
Who stay up-to-date with the latest best practice and the latest accounting tools…
And who institute the systems and processes that a large, well-run company would take for granted – not the kind that a tiny start-up running on a shoestring might use.
You need the best.
Warmly,
Garry
We were recently approached by a small firm with an under-performing bookkeeper.
There were some long-term signs he was not up to the job. His office was full of paper, because he had been doing the accounts on spreadsheets rather than using up-to-date technology. That was quite common a decade ago, but I almost don’t come across it any more.
Recently, he went on sick leave, and the full extent of the problem emerged. It took his temporary replacement weeks to make head or tail of the company’s accounts – weeks when the bills were paid late, payroll was delayed and the company’s business nearly came to a halt.
The company owner, who was referred to us by his business coach, claimed to understand the situation “wasn’t ideal”.
But ultimately, he wasn’t willing to upgrade his financial management. He seemed to be in denial…
The problem was, he couldn’t bring himself to replace this staff member, who was both well-liked and had been with his company for some years.
Now, I’m somewhat sympathetic. I believe firmly in loyalty to your team. You must have their interests close to your heart to build a company people want to belong to and work hard for. And I would never, ever advocate treating anyone on your team poorly.
But there is such a thing as misguided loyalty, too – and this was a clear case.
Keeping your accounts in the hands of a single person is always a huge risk to your business, especially once your business reaches £1 million or £2 million turnover and becomes more complex.
There are no checks and balances and no safeguarding in case of mistakes or fraud.
You can only ever have a limited range of expertise and often, the accounts are set up in a way that suits your bookkeeper or accountant – not that suits the business. When they go, your accounts can prove a mystery to everyone else.
This case shows just how horribly wrong it can all go if that sole person is not up to the job. When your finances are not well-managed, it is an existential risk to your business.
Loyalty to an under-performing bookkeeper or accountant jeopardises your business’s long-term future. It’s dangerous to you as owner and it’s unfair to the other employees whose livelihoods are endangered too.
Don’t tolerate this unnecessary risk. Your finances need to be managed by a team who can support you with a range of skills…
Who have the ability to supervise each other and check each other’s work…
Who stay up-to-date with the latest best practice and the latest accounting tools…
And who institute the systems and processes that a large, well-run company would take for granted – not the kind that a tiny start-up running on a shoestring might use.
You need the best.
Warmly,
Garry
