After 11 years in public accounting, I’ve seen every type of bookkeeper out there, and let’s be honest: nothing is worse than receiving a year-end that’s an absolute train wreck. You know the kind I’m talking about—the one where the adjusting entries are full of “adjust to actual,” “agree to statement,” “reclass misallocated transaction”, “reverse entry double recorded”, “record additional expenses”, and the list goes on. If this sounds familiar, here’s the harsh truth: you’re not doing your job properly. There, I said it. But hey, the good news is, you can fix it.
Let’s be clear—if you want to be a really good bookkeeper, you’ve got to care about getting things right from the get-go. No more sloppy entries or last-minute scramble to cover up mistakes. When your books are on point, the accountant can spend less time cleaning up your mess and more time helping your client save on taxes or improve their bottom line. That’s what you want, right? Not only will you feel the satisfaction of doing your job well, but trust me—accountants love good bookkeepers. And when they notice your attention to detail, guess what? They’ll start sending more work your way. So, you better believe—getting it right means more business for you!
So, how do you become an all-star bookkeeper, and not the person everyone dreads getting year-ends from? Let’s take a look at some common mistakes and how you can stop making them.
Some Brutally Honest Bookkeeping Basics to Get Right
If you want to level up as a bookkeeper, here are some basic fundamentals that you absolutely need to nail. These aren't optional—they’re the bare minimum, and if you’re not doing them, you’re already behind. Let’s dive in:
Get Your Opening Retained Earnings Right
This one is basic bookkeeping 101, yet I’ve had to make countless adjustments to reconcile retained earnings because it wasn’t done properly. If your opening retained earnings don’t match the accountant’s adjusted trial balance, that’s a problem. This should be clean from the start, so don’t overlook it.
Balance Sheet Accounts Must Reconcile
Every balance sheet account needs to reconcile with a document—whether it’s a bank statement, credit card statement, loan statement, or subledger. Nobody, and I mean nobody, wants to get a file where balances don’t agree to the support. Additionally, this is an excellent opportunity to clean up the supporting documentation. For example, if there are old reconciling items in the bank reconciliation that haven’t cleared in the past six months, it’s a good idea to investigate these items further. If needed, consider reversing any transactions that are no longer relevant or accurate, ensuring your support is both current and accurate.
Review Your Income Statement—Is it Reasonable?
Don’t just gloss over it—really look at your income statement. Does it make sense? Are there any wild variances compared to the prior year? A quick review can often spot errors or mispostings. And if there are large discrepancies, don’t just leave the accountant to figure it out—tell them when you hand over the year-end. No one knows the books better than you, so your insight is gold.
Check Prior-Year Adjustments
Take a look at what adjustments the accountant made last year. Are any of those adjustments something you should have posted yourself? If you can, make those changes going forward so the accountant doesn’t have to clean up the same mess every single year. Learn from your mistakes—this is your chance to level up and make things smoother for everyone.
Support Large Balance Sheet Accounts
When you hand in the year-end, always provide documentation for any large balance sheet accounts. At a minimum, this means bank accounts, credit card statements, loan statements, A/R, and A/P subledgers. But think ahead—if you have other line items like prepaids or inventory, provide support for those too. The more backup you can offer, the smoother the process will be for everyone.
Double-Check Shareholder Loan Postings
This one is critical. Any debits posted to shareholder loans are personal in nature, and if they’re not handled correctly, they can create a taxable benefit for the shareholder. A quick review will give you peace of mind that nothing got posted here that should’ve been business-related. Misallocating expenses can result in double whammy: the shareholder could end up paying personal tax and the corporation might miss out on a deduction. Not a good look.
Follow Up Relentlessly With Clients Who Aren’t Providing Information
Let’s be real—clients can be terrible at getting you the info you need. They're busy, they forget, or they just don’t prioritize it. Unfortunately, it’s up to you to chase them down to make sure everything is filed on time. You might feel like a babysitter, but if you want to be a top-tier bookkeeper, sometimes that’s just part of the job.
Most business owners couldn’t care less about filings, numbers, or deadlines—they’re relying on you and the accountant to take care of it. So, it’s your responsibility to keep on them. Remind them of the consequences: late filings, penalties, interest charges. These aren’t just minor inconveniences—they’re real problems that cost time and money.
And here’s the thing—if you’re chasing them down and they’re still unresponsive, at least you’ll know you did everything you could. You’ll have a clear conscience that you didn’t drop the ball. But if they continue to ignore you, it might be time to cut the cord. If they don’t care about their own finances, why should you? Sometimes, it’s just not worth the stress.
8. Don’t Rely on the “Ask My Accountant” Account
If you want to be a good bookkeeper, you have to take the time to figure out how to properly account for transactions. Sure, we all come across tricky, complicated transactions from time to time, and it’s okay to not know everything. But here’s where I see a major problem with the “Ask My Accountant” account. Far too often, this account becomes a dumping ground for transactions that the bookkeeper couldn’t be bothered to figure out. So instead of asking the right questions, they just stick it in this catch-all account and pretend it’s no longer their problem—now it’s the accountant’s headache to sort out.
Here’s the thing: that’s lazy bookkeeping, and it’s a bad habit to get into. Your job is to figure out what each transaction is for before passing it off. That’s why you need to follow up with your clients—ask them for clarification, dig into the details, and make sure you’re properly classifying everything. If you still don’t know how to account for something, don’t just sweep it under the rug—ask the accountant for advice. It’s a perfect opportunity to learn and improve your knowledge, rather than dumping the issue in someone else’s lap.
And if, for whatever reason, something does end up in the "Ask My Accountant" account at year-end, don’t just leave it there. Explain it to the accountant. Outline what’s in there and what steps you’ve already taken to figure it out. At least then, you're showing you're trying and taking responsibility for your part in the process.
9. Don’t Shy Away from Complicated Transactions
If you come across a transaction that’s complicated or you’re not sure how to classify, don’t just leave it sitting there hoping someone else will deal with it. Take a stab at it! Do your research, ask for help if you need it, and then post the entry. This is how you build your skills as a bookkeeper. Every time you tackle a complicated entry, you’re learning. If you get it wrong, no big deal—the accountant will fix it, and you’ll get valuable feedback on what went wrong. That’s how you improve, and next time you encounter a similar transaction, you’ll already know how to handle it.
Conclusion: Becoming an All-Star Bookkeeper
At the end of the day, becoming an all-star bookkeeper is about taking ownership of your work, embracing challenges, and always striving to improve. Whether it’s getting your retained earnings right, reconciling balance sheet accounts, reviewing income statements, or tackling those complicated transactions head-on, the more proactive you are, the stronger your bookkeeping skills will become. Don’t shy away from difficult entries—take a stab at them, do your research, ask for help, and learn from your mistakes. Each challenge is an opportunity to level up your skills and become even better at your craft.
If you’re consistently doing your best to keep things accurate, your clients will notice, your accountants will respect you, and you’ll be in high demand. The best bookkeepers don’t just keep the books—they make the process smoother and more efficient for everyone. And that’s what makes you an all-star in the eyes of clients and accountants alike.
On that note, as an accountant with years of experience working with bookkeepers, I’m always open to taking on new clients. I’d love to collaborate with bookkeepers who are eager to level up and improve their skills. If you’re committed to getting things right the first time and working together to solve complex challenges, we’ll make a great team.
So, take pride in your work, continue improving, and let’s work together to provide the best possible service to your clients.
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