I can’t tell you how many times I’ve talked to people who think of bookkeeping as “just data entry” and honestly, they couldn’t be more wrong!
Yes, it’s true that you are entering data into a program. But if you look at it only from the perspective of getting the numbers into the software and nothing else – you are missing the boat. What good is entering numbers in the software if you don’t understand what they mean? If you aren’t looking at the reports? If you are not cross checking and verifying that the numbers even make sense? How do you know that all of the data has even been entered, much less correct?
If you’re not looking at your Profit and Loss and Balance Sheet reports on a regular basis (by regular I mean at least monthly or quarterly), then how do you know that the numbers being keyed in have any real meaning whatsoever? Not to mention the other reports; such as Accounts Payable, Accounts Receivable, etc. How do you know if the bank and credit card balances are accurate if bank reconciliations are not being performed? You have to be able to look at your financials and various reports and have confidence that the numbers are accurate. You need to understand what the numbers are representing and what they are telling you about your business. If someone is ‘just entering data’ with no understanding of their meaning and the importance to your business; what’s the point? Where is the value?
As a business owner, you should not underestimate the value of a good bookkeeper, tax preparer, or a good assistant who understands the importance of accurate data and correct numbers. We can teach pretty much anyone how to use QuickBooks, that’s not a problem. While there may be several ways to do something in QuickBooks, there’s going to be a way that works best for you and your particular environment. Learning the software typically isn’t a problem; however it is key that you work with someone who understand what the ramifications are if you do something one way versus another … we can teach that.
What we can’t always teach, or what is much harder to teach, is the willingness to learn and/or the motivation to ask questions to gain the understanding and knowledge needed in this position. I can’t tell you how many times we’ve worked with someone who said they knew QuickBooks inside and out, or have been using it since day one, yet the the bank or credit card accounts have never, ever, been reconciled properly within the software against the paper statements, the chart of accounts are a mess, and they never look at a single report. Many times over the years we’ve worked with someone who has no training whatsoever, but they are willing to learn – and that’s the most important factor in finding a good data entry person/bookkeeper, or assistant. There is much more to using the software correctly than just keying in data or recording a check.
The amount of money a business can lose because of poor financial records can be astounding, and quite honestly can be enough to put someone out of business. Not only do you not have a clear picture as to where the money’s going, where it’s coming from, or how it’s being spent – you can’t forecast properly or make sound decisions on how to grow your business. This can lead to disastrous decisions, such as putting money into the wrong area of your business when you’re attempting to grow it, investing in inventory when you really should be investing in the infrastructure; or growing when you shouldn’t.
I can’t stress enough the importance of having someone who will actually look at your financials and work with you to understand your reports and data. Understanding your numbers is key to your success. Believe me when I say that proper bookkeeping is so much more than just data entry, or just entering the numbers; it can make or break a business.
Do you still think bookkeeping is just keying in data? Do you believe that blindly performing data entry, without understanding what those numbers mean and the impact they have, is helpful to you or your business? Is a data entry person any benefit to your business if they are not open to change, willing to ask questions, or have the desire to learn and grow? I hope this gets you thinking about how you look at data entry and the importance of good numbers, good processes and good procedures. Please let me know if you have any questions or comments.