Maybe they are the like the “Two Dollar Stores” of this world. They hope to be able to do a large number of clients’ books quickly at a low cost, and make a living based on turnover.
It begs the question: Is a cheap bookkeeper cheap because they themselves do not value their work or worth?
Maybe the cheapest bookkeeper has never run a business in their life?
Maybe the cheapest bookkeeper is just starting a bookkeeping business and does not feel confident in charging too much.
Maybe the cheapest bookkeeper has recently left full time employment having worked in the accounts department of a large company and reckons that it can’t be that hard to run a business.
Even though they’ve never had to set up any bookkeeping systems, only done certain aspects of accounting, and always been able to go and ask the financial controller how to do something when there’s been a problem.
Maybe they have just completed a one day accounting software training program and think that makes them a bookkeeper?
Maybe the cheapest bookkeeper is a mother / wife / partner / father of a business owner, who has being doing the bookwork for the family business for a few years and reckons that they could start their own bookkeeping business. They’re attracted to the idea of being able to drop the kids off at school, do a few hours bookkeeping, then pick the kids up from school.
Maybe they are outsourcing your bookkeeping overseas?
If you have little regard for your business, then maybe a cheap bookkeeping service is just right for your business
WHY DOES A CHEAP BOOKKEEPER COST YOU MONEY?
The same as a cheap motor mechanic can cost you money, or a cheap carpenter, plumber, builder or lawyer.
How do you know if they’re doing the right thing?
“You don’t know what you don’t know”. Inexperienced bookkeepers are unaware of many compliance issues.
“Garbage in garbage out”. At the end of the year you will be paying your accountant to fix up your books.
The cheapest bookkeeper does not have the experience to know if something is missing or wrong.
Just one tiny error can cost you thousands of dollars.
CHEAP BOOKKEEPERS ARE FANTASTIC FOR MY BUSINESS!
Why is that? Because we get so many clients coming to us because their cheap bookkeeper has stuffed up the books.
We get so many referrals from accountants who want their clients to have a great bookkeeper.
The problem with bookwork is that it’s not always possible to see where mistakes have been made. A simple mistake that might take two minutes, can result in detective work that takes three hours to rectify.
So your cheap bookkeeper has not only cost you their time, and then our time to correct their errors, but how much have you lost through other incorrect allocations.
A word of warning: You’ve been in business long enough to understand that cheapest is rarely best, and cheap bookkeepers can end up costing you a lot of money long term.
A word of advice: Ask your accountant to recommend a good bookkeeper.