As an accountant, I get frustrated when I hear about a small business canceling their bookkeeping service for the purpose of cutting down on expenses.
No, I don’t get frustrated. I get defensive. I take it personally!
I throw my hands up in the air!
I loudly ask what is wrong with small businesses! Don’t they know they need to organize their financial records?!
And then I stop being dramatic because my adult self knows that the reason to cancel was not made carelessly.
When large businesses want to cut expenses, they turn to their accountant or accounting department for guidance. In addition, every month or so, the department heads of a large company meet with a leader of the accounting department to discuss the financial performance of the departments as well as that of the business.
In other words there is COMMUNICATION between the accountant and the large business.
Unfortunately, small businesses do not get to experience that level and depth of communication. Saying it another way, small businesses rarely hear from their bookkeeper or accountant unless it is in the form of a bill or that one time of the year when taxes are due.
By the way, the lack of communication is one of the top complaints from small businesses.
Since bookkeepers fail to communicate with small businesses (or vice versa), small businesses are often left to figure out how their business is doing on their own. And if the small business can figure that out on their own, well then, of course the bookkeeper is seen as an expense instead of something of value.
Why is communication important?
It increases the value of service provided.
Commitment between parties gets stronger.
It builds trust.
Misunderstandings and miscommunication tend to be avoided.
It helps your business thrive! That’s a win-win for the bookkeeper and the small business!
So to my bookkeepers, talk to your clients, and do so at least once a month. Small businesses want to know how their business is doing. That is why they hired you!
And to small businesses, reach out to your bookkeeper. Ask questions about how your business is doing. Ask what you could do better. Ask the bookkeeper to teach you how to run a report. Just…ask anything!
Now the next time a small business wants to reduce expenses, they will ask their bookkeeper because they trust and value their bookkeeper. That is the result of communication.