What Would Happen if Your Bookkeeper Died?


What Would Happen if Your Bookkeeper Died?

Not a nice thought really. But if it has got you thinking then that’s a good start.

It does not have to result in death either. I am sure you have heard stories about bookkeepers who can no longer work because of family commitments, because they have become ill, are just too busy with workload, or simply just disappeared overnight. Sometimes it is as simple as your Brisbane bookkeeper going away on holiday.

If you have a bookkeeper that has no backup it is quite a dangerous position to be in. These are times when your business can seriously suffer. Many simply do not realise the damage this can cause financially and psychologically.

In many cases a Brisbane bookkeeper may do everything and you may not even have access to your bookkeeping system. All your data is in their hands. If they suddenly become unavailable you could be stranded.

The effects can be significant. You might find that you can no longer lodge your BAS and are late filing them. You cannot run payroll for your staff or calculate and pay Superannuation. You might not know who owes you money or who you need to pay.

We find that when bookkeeping systems breakdown the financial cost can run into thousands of dollars. The fines and interest charged by the ATO for none payment or lodgement of BAS can be significant in itself. We often find that those with poor record keeping or poor lodgment records with the ATO have a higher chance of being audited.

In these circumstances you might find you no longer have access to your system. You do not know how up to date your bookkeeping is and it is almost impossible for someone new to take over because even if you could access your system your bookkeeper had a particular way they worked.

So how do you avoid being in such a position. Here are a few tips

  1. It is best to use a Brisbane bookkeeping practice where a number of staff are employed – you are not relying on just one bookkeeper who has no backup. This way if your regular bookkeeper is not available at least there is someone who can continue and provide the reports you need. All the above issues could be solved by doing this.
  2. If you use a self employed bookkeeper make sure you have access to your data at all times including details of all logins and passwords. That way if something goes wrong at least you can restart again.
  3. Use a good bookkeeping programme like Xero where the data is always available and can never be lost.

In summary, don't leave it to chance make sure you have control of your bookkeeping records.      

Hitesh Mohanlal

Director at WOW! Advisors & Business Accountants

I am known as Australia’s Number 1 Business Growth Strategist (profit increase and owner lifestyle improvement specialty), and have been recognised on CNN, Fox, NBC, CBS and ABC. I am also a Chartered Accountant in the UK and Australia and have been practicing for the last 22 years. I run three businesses. I have worked with over 3,500 businesses in Australia, America, UK, Japan and Europe. I work with small to medium enterprises to improve their profits by up to a staggering 2000%

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Comments (2)
Wendy Huang

Wendy Huang, Full Time Blogger and YouTuber at A Custom Blog in 4 Minutes

What a shocking title! Made me click :)

Hitesh Mohanlal

Hitesh Mohanlal, Director at WOW! Advisors & Business Accountants

I know ... not nice but as an accountancy practice we sometimes have to pick up the pieces and it is usually a stressful time for business owners.