Beware of the cowboys in business!

In business, every time there is a buoyant or bull market, Cowboys appear! Make sure you do not have a Cowboy disguised as a bookkeeper or accountant working for you.

Let me explain … let’s go back over history. Before GFC, we all had plenty of money to spend — the market became saturated with financial advisers. A property boom — suddenly, new real estate agents flood the market.

Many of these were cowboys; you need to know how to recognize them. During times of demand, it would appear that every Tom, Dick, and Harry jumps on board, giving it a go. Don’t get us wrong; a lot of wonderful new businesses emerge. But there are many jumping on the gravy train, with not much thought or planning or expertise even!!

It’s the expertise that is concerning. It’s the lack of expertise that puts us wrong when we put our faith and hands in these providers, overnight cowboys promising what they cannot deliver.

Some of these cowboys are very shiny. They have wonderful websites and bells and whistles that impress us. And when we don’t know how to assess the quality or authenticity of what we are looking for, it’s tough for us to know.

Now for bookkeeping and accounting and current market conditions, there may well be an onslaught of cowboys entering the market with the accounting industry in high demand. It would seem that every Sarah, Jane, Mary, and the occasional Tom too can be a bookkeeper. Or can they?

Bookkeeping is simple. It’s not rocket science, or is it?

The turmoil of COVID has meant that the ATO, government bodies, and the accounting industry are stretched. The compliance and measures from the government have overwhelmed us all. It isn’t easy to navigate through, even for the savvy. The industry is not able to cope with demand, and the industry is booming. We are now at risk and at the mercy of cowboys AND cowgirls flooding in. Now they may be hard to recognize; They could be in disguise. They could be in the form of sole operators, outsourced teams, or operators inside firms with limited expertise. So, buyer beware.

Let’s learn from history and not make the same mistakes as financial advisers saturating the market before GFC. We were let down then from wrong advice that could not weather the storm for many people and businesses. The GFC was unprecedented times, and so is COVID. It is best to consider that there are always ups and downs in business! It’s part of our economic cycle. Make sure that you don’t get suckered in by the cowboy.

How to recognize a cowboy in the accounting industry!

Are you frustrated with your bookkeeper or accountant for any of the following reasons:

• They don’t get back to you quickly with your query.
• They do not contact you regularly with progress reports.
• They don’t readily know the answer.
• They tell you it will be alright without explaining why.
• They tell you not to worry — they are taking care of it.
• They fob you off and tell you we’ll do a journal for that.
• They speak in technical terms, and you feel flummoxed and stupid.
• They get frustrated with you and your questions.
• They are not transparent in looking into your financial data with you.
• They do not help with or appear knowledgeable about COVID stimulus.

 

What you can do:-

· Take control

· Ask the questions

· Make sure you get a satisfactory reply that answers your question

· Understand your financials

· Understand the deadlines and requirements

· Check on their work — yes, there are checks you can do

 

How to recognize a good bookkeeper/accountant

· They communicate regularly

· They are proactive

· They reply to you promptly

· They know the answers

· They can direct you to other professionals

· They are in tune with your business

· They are onboard heading you in the right direction

· They are helpful and generous with knowledge

· They can educate you on understanding financials

· They come up with solutions

· They troubleshoot easily

· They give you peace of mind

· They answer the question before you think of it

 

We hope this is helpful to you and your business!!

To all the amazing accountants and bookkeepers out there, keep up the good work!

For you cowboys — BEWARE!