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Archives for February 2022

Best Practices for Bookkeepers

Bookkeeper /ˈbo͝o(k)ˌkēpər/ noun a person whose job is to keep records of the financial affairs of a business. “The business had grown enough to justify hiring a bookkeeper”

Keeping the books. Controlling the finances. Knowing about the money side of the business. Everybody either has or should have someone like this in their business.

We’ve talked about the different financial roles in a business in this space before.  But the role of the bookkeeper (as opposed to the accountant or CPA or CFO) has its own set of things to consider in helping keep the business financially healthy.

With that said, here are few “best practices” for bookkeepers from my perspective:

  1. Keep business and personal finances separate.
  2. Track cash and know your cash flow.
  3. Keep track of all expenses.
  4. Create and follow a budget to ensure payments are received and made on time.
  5. Maintain accurate records.
  6. Choose your accounting method and stick with it.
  7. Use credible accounting software.
  8. Work with the rest of the financial team (CPA, accountant) to ensure compliance with US GAAP rules and regulations.
  9. Build an audit trail.
  10. Create timely reports.

This list is just a starting place.  However, it highlights the most important things that a bookkeeper must keep in mind when managing a company’s finances.

We love numbers.  If you are looking for help with your finances, call or write to us.  TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the board room.

*Photos courtesy of Unsplash (photographers Northfolk and Visual Stores Michelle

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Rules for Working with the Funded Entrepreneur

Entrepreneurs are interesting people. They are talented, insightful, creative and visionary. They have an ability to make an idea or concept into a reality. Taking something out of thin air and making it tangible.

But when it comes to money and finances, eh, that is not always their forte.

So as a financial professional, I find myself often working with these folks who have found a way to get funding but not take their project to the next level. That’s why I came up with a list of rules for working with what I call the Funded Entrepreneur.

  1. Be bonded by trust. Be a trusted advisor and partner.
  2. Understand their ideas and share in their passion for their business. Look for and suggest options for their business they hadn’t thought of.
  3. Be the voice of reason.
  4. Advice does not dictate. Have a dialogue between you so that neither of you lectures the other. Know when to stop talking and listen.
  5. Help them understand their finances at a high level and in the context of their business and markets. Stay out of the weeds.
  6. Be the financial brains while they are the creative and director of the whole business.
  7. Show them how to grow financially while growing creatively.
  8. Help them understand when to stay with a business and when to consider an exit
  9. Plan for the future and ask tough questions.

We love numbers. If you are looking for help with your finances, write to us at TFO Solutions is dedicated to helping entrepreneurs and business owners with their financial strategy from the back office to the boardroom.

*Photos courtesy Unsplash (photographers Adeolu Eletu and Daria Nepriakhina


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