How to Work with a Bookkeeper Effectively

You've just hired a bookkeeper, congratulations! This is a smart move that'll save you hours each week and give you clearer insights into your business finances. But here's the thing: simply handing over a box of receipts and hoping for the best won't get you the results you're after.

Working with a bookkeeper effectively is like any good partnership. It requires clear communication, mutual respect, and a bit of effort from both sides. When you get it right, you'll wonder how you ever managed without them. When you get it wrong, it can feel like you're paying for more stress instead of less.

The good news? It doesn't have to be complicated. With the right approach from day one, you can build a working relationship that transforms how you handle your finances.

Start with the Right Person for Your Business

Not all bookkeepers are created equal, and the cheapest option isn't always the smartest choice. You want someone who understands your industry inside and out. A bookkeeper who's worked with restaurants will spot potential cash flow issues that someone who's only handled retail might miss entirely.

Look for these essential qualities: attention to detail (because one misplaced decimal point can cause serious headaches), strong organisational skills, and genuine trustworthiness. You're giving this person access to your most sensitive financial information, so trust isn't negotiable.

Ask potential bookkeepers about their experience with businesses similar to yours. Have they handled VAT returns for your type of company? Do they understand the seasonal patterns that affect your cash flow? Their answers will tell you whether they're the right fit.

Set Up Crystal-Clear Communication Channels

This is where many business owners go wrong. They assume their bookkeeper will just figure out what they need to know and when they need to know it. Don't make this mistake.

Establish regular check-ins from the start. Whether it's weekly, fortnightly, or monthly depends on your business size and complexity, but consistency is key. These aren't just status updates, they're opportunities to discuss trends in your numbers, upcoming expenses, and any changes in your business that might affect your finances.

Designate one main contact person in your organisation. If multiple people are sending different information to your bookkeeper, things get confusing fast. Choose someone (probably you, if you're a small business owner) as the primary point of contact, and make sure everyone else knows to funnel requests through this person.

Introduce your bookkeeper to your accountant directly. Don't play telephone between them, let them build their own working relationship. This speeds up processes like year-end accounts and means you're not constantly fielding questions from both sides.

Create a System for Information Sharing

Your bookkeeper can only be as good as the information you provide them. Random emails with attached receipts and sporadic updates about expenses won't cut it.

Set up a regular schedule for sending documents. Instead of waiting for them to chase you for receipts, invoices, and bank statements, send everything financial on a set day each week or month. It's better to over-communicate than leave them guessing.

Use cloud-based systems where possible. Tools like Google Drive, Dropbox, or dedicated bookkeeping software mean you can both access the same information in real-time. No more "did you get my email?" conversations.

Organise your documents logically before sending them. Group receipts by month, separate personal expenses from business ones, and include brief notes about unusual transactions. Your bookkeeper will thank you, and you'll get faster, more accurate results.

Be Responsive and Lead by Example

If you want prompt responses from your bookkeeper, you need to respond promptly to their questions. It's that simple.

Set a response time policy for day-to-day communication. Committing to respond within 24 hours during business days shows you respect their time and helps keep your books current. When you're delayed, a quick acknowledgement goes a long way.

Don't ignore their questions. If your bookkeeper asks about a transaction, there's usually a good reason. Maybe they've spotted something that doesn't look right, or they need clarification to code it properly. These questions are part of the service you're paying for, not an inconvenience.

Give them a heads-up about big changes. Planning a major equipment purchase? Hiring new staff? Taking on a large new client? Let your bookkeeper know in advance. They can help you understand the financial implications and ensure everything's recorded correctly from day one.

Use Their Expertise to Your Advantage

Here's what many business owners don't realise: your bookkeeper isn't just a number-cruncher. They're looking at your financial patterns every month, and they often spot trends and issues before you do.

Actually read the reports they prepare. Don't just file them away, study them. Look for patterns in your spending, seasonal trends in your revenue, and areas where costs might be creeping up. These reports are goldmines of business intelligence if you know how to use them.

Ask for their opinions and recommendations. A good bookkeeper has seen how dozens of businesses handle similar situations. They might suggest more tax-efficient ways to structure expenses or alert you to cash flow patterns that could cause problems down the line.

Take their advice seriously. When your bookkeeper recommends setting aside money for a large tax bill or suggests reviewing a particular expense category, listen. They're not trying to interfere with your business, they're trying to help you run it better.

Maintain Transparency About Expectations

Nobody likes unpleasant surprises, especially when it comes to money. Be upfront about what you expect, and make sure you understand what they're providing in return.

Discuss pricing and deadlines clearly at the beginning of your relationship. Will they handle your VAT returns, or is that extra? How quickly will you receive monthly reports? What happens if you're late providing information? Getting these details sorted early prevents misunderstandings later.

Be honest about your financial situation. If cash flow is tight and you might be late paying their invoice, tell them upfront. Most bookkeepers would rather know in advance than be surprised. Similarly, if you're planning rapid growth that might change your needs, discuss how that might affect the services you require.

Communicate changes promptly. Started using a new payment system? Opened a new bank account? Changed your business structure? These things affect how your books should be handled, so don't wait until year-end to mention them.

Review and Learn from Your Financial Information

Your monthly bookkeeping reports aren't just for filing away until tax time: they're business intelligence tools that can help you make better decisions.

Look for trends and patterns in your revenue and expenses. Are certain months consistently better or worse? Are there expense categories that keep growing without obvious explanation? Your bookkeeper can help you understand what these patterns mean for your business planning.

Use the information for budgeting and forecasting. Historical data from your books is the best foundation for predicting future performance. Your bookkeeper can help you understand seasonal patterns and identify which expenses are fixed versus variable.

Ask questions when something doesn't make sense. If a report shows something unexpected, don't assume it's correct: ask for clarification. Sometimes there are perfectly logical explanations, but occasionally these questions catch errors before they become bigger problems.

Build a Partnership, Not Just a Transaction

The most successful bookkeeping relationships feel more like partnerships than simple service arrangements. You're both working toward the same goal: keeping your finances organised, compliant, and useful for business decision-making.

Show appreciation for good work. When your bookkeeper catches an error, provides helpful advice, or goes above and beyond, acknowledge it. Like any professional relationship, a little recognition goes a long way.

Be patient with the learning curve. It takes time for a new bookkeeper to understand the nuances of your business. The investment in training them properly pays dividends in the accuracy and relevance of their ongoing work.

Consider their professional development. If your business grows or your needs become more complex, discuss whether additional training or qualifications might benefit both of you.

Working effectively with a bookkeeper isn't rocket science, but it does require intentional effort. When you get the relationship right, you'll have more than just organised books: you'll have a trusted advisor who helps you understand your numbers and make better business decisions. And that's worth its weight in gold.

If you're ready to experience the benefits of professional bookkeeping services, book a 15-minute discovery call with our team to discuss how we can support your business.