Bookkeepers Aren’t Magicians—They Can’t Organize Data You Don’t Share
Bookkeeping may not be the most exciting part of running a business, but it’s essential. And while your bookkeeper may be incredibly skilled, organized, and detail-oriented, one thing they are not is a magician.
If you're handing over incomplete or delayed information and expecting perfectly accurate financial reports, you're setting your bookkeeper—and your business—up for frustration, confusion, and mistakes.
Bookkeepers Work With What You Give Them
A bookkeeper’s job is to organize and classify financial information. But they can't work with what they don’t have. If you’re not providing receipts, bank statements, loan documents, or explanations for transactions, your financials won’t reflect reality.
Expecting accurate books without sharing complete information is like asking a chef to cook dinner without knowing what ingredients are in the pantry. It just doesn’t work.
Garbage In, Garbage Out
There’s a reason accountants often say, “Garbage in, garbage out.” If the data your bookkeeper receives is incomplete or confusing, the books will reflect that. Here are some real-world scenarios that cause chaos:
Loan Payments Without Loan Statements
If you’re making loan payments but not providing the loan statement, your bookkeeper can’t separate principal from interest. So when your profit and loss report looks off, it’s not because they missed something—it’s because they weren’t given the full picture.
No Bank or Credit Card Statements
Without statements, there’s no way to reconcile your accounts. That means errors, duplicates, or even fraud can go unnoticed. If you're not providing statements, your books are operating on guesswork, not facts.Unanswered Questions About Expenses
Make a $500 purchase at a big-box store? If your bookkeeper flags it and you don’t clarify whether it was office supplies, event expenses, or something else, it gets stuck in limbo. Multiply that by a dozen unknowns a month, and suddenly you have pages of “uncategorized” items.
E-Wallet Transactions With No Detail
Venmo, PayPal, and other e-wallets are convenient—but vague. Your bank feed just shows “Venmo Payment - $250.” Was that a vendor payment, a refund, a personal transfer? Your bookkeeper doesn’t know unless you tell them. A few of these a month? Manageable. A dozen? Your books become a maze of guesswork.Using a Business Card for Personal Purchases
Swiping your business card at Target for birthday decorations? Your bookkeeper has no way to know if that’s a legitimate business expense. Mixing personal and business finances leads to messy books, tax complications, and misclassified spending. Please, just stop. Here’s an article that explains why it matters.
Unexplained Deposits
Want to track revenue by service, client, or product line? Then you have to clarify deposits. If your bookkeeper sees a $5,000 deposit and doesn’t know which client it's from, or if it’s possibly a refund or a loan, that money gets dumped into a generic income category—and you lose valuable reporting insights.
Bookkeepers Can Clean—Not Conjure
A good bookkeeper can organize messy records, reconcile accounts, and spot inconsistencies. But they can’t conjure missing data out of thin air. They can’t invent receipts, decipher vague Venmo notes, or guess what you meant by “misc.” in your memo field.
Communication Is Key
Even the most experienced bookkeeper can’t operate in silence. If they ask for clarification on a transaction or need a document to properly classify an item, a quick response from you goes a long way. A few minutes of communication can prevent hours of backtracking later—and avoid costly mistakes.
Help Them Help You
Want accurate books and better business insights? Set your bookkeeper up for success:
Submit receipts and explanations for unusual expenses
Provide all relevant statements (bank, credit card, loans)
Keep business and personal finances separate
Respond to questions quickly
Let them know when something in your business changes
Your bookkeeper isn’t a magician—but they are one of your most valuable business partners. Give them what they need, and they’ll give you clarity, accuracy, and confidence in your financials.
Looking for expert guidance on building a strong financial foundation for your small business? Get your copy of Navigating Your Small Business Finances today and take control of your business's financial future with confidence!
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