Are You Getting Organized Financials from Your Accounting Department?

When you hire an accounting professional, it can sometimes be hard to know if your books are being done correctly and whether you are getting accurate information.


Here are some things you can do to stay on top of your finances without becoming a micromanager.

Review Your Chart of Accounts at Least Once a Year

Look for duplicates and question them. Ask about the chart of accounts setup. Does it enhance your reporting? The chart of accounts should be set up as a source to pull reporting from. Don’t worry if it doesn’t show the details you want—think of it as buckets of information that can be poured into other buckets for closer examination. 


For example, a great report is profit and loss by the top 10 customers. You don’t need your customers listed in the chart of accounts to get this information.

Reconcile All Bank and Credit Card Accounts Through the Current Date

This is a good way to know if all transactions came through properly and which ones are missing. You should also receive a report of what transactions haven’t cleared yet. If those transactions are within a few days of the closing date on the statement, it will probably clear by the next month end. Anything outside of that timeline should be investigated.

Ask for Payroll Reporting

You will want to see payroll reports that capture all items: salary, benefits, taxes paid by employer and reimbursements. All payroll paid to employees should be recorded as gross wages, not net (gross minus employee taxes)—unexpectedly, ask for a detailed payroll report with each person’s wages listed, as well as reimbursements and year-to-date wages paid. 


In our experience, fraud occurs more often in payroll than in other areas. Asking for this information will help you stay on top of payouts.

Ask for a List of Vendors Paid to Date and if W9s Have Been Collected 

This will be helpful at year-end when it is time to create 1099s to send to these vendors. W9s should be given to anyone you are paying, regardless of the reporting threshold ($600)—it is much easier to get a W9 from someone before you pay them than after.

Make Time to Review Your Reporting Monthly

Your accounting department should be sending financials for your review on a regular basis. Make sure you review them for accuracy and to make decisions. Reports like profit and loss by month will show trends, but it will also show if something is miscategorized. For example, you can compare months to see if rent expenses are consistent or if a month is missing. 


If you have any questions about what you see in the reporting, always ask for clarification or for a meeting to go over it. 


Once you have the confidence you are getting quality financials, you will feel more comfortable making decisions based on those financials.


Have questions about your financials? Wondering if you are getting all you can from your books? Give us a call and we can review your books and answer your questions!

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Leading vs Lagging Indicators: Financial Metrics Small Business Owners Need to Know

By Alisa McCabe • March 9, 2026
What Are Lagging Indicators? Lagging indicators measure results that already occurred. They confirm outcomes after decisions have played out, making them useful for evaluation and reporting. Common examples include: Net profit or loss Historical revenue growth Accounts receivable aging Customer acquisition cost calculated after campaigns conclude These figures are concrete and easy to pull from records, which makes them popular during reviews or planning sessions. Their strength lies in clarity. They show whether goals were met and whether strategies delivered results. Their weakness is timing. Once the numbers appear, the opportunity to influence them has passed. Adjustments based on these readings affect future periods, not the one already closed. What Are Leading Indicators? Leading indicators focus on signals that suggest what may happen next. They do not guarantee outcomes, yet they provide early insight into momentum and risk. Examples include: Sales pipeline value Website traffic paired with conversion behavior Engagement trends Cash flow projections Quote-to-close ratios These measures require consistency and discipline, since they depend on timely updates and thoughtful interpretation. Their advantage is foresight. They give leaders room to respond before challenges escalate. Their limitation is complexity. Tracking them takes effort, and interpretation can feel less certain than reviewing completed results. Why Small Businesses Need Both Lagging measurements validate whether a plan was successful or not. They answer questions about effectiveness and efficiency after the fact. Leading signals provide the chance to adapt sooner. They highlight potential shortfalls or opportunities while there is still time to act. Using both creates balance. One confirms reality, while the other shapes preparation. Together, they support steadier decisions and reduce surprises. How to Get Started Begin by identifying two or three lagging results that reflect success in your industry. Choose figures that clearly connect to sustainability and cash health. Next, select two or three leading signals that influence those outcomes. For example, if collection timing affects cash availability, monitor invoice trends and projected inflows. Use tools like QuickBooks Online or customized dashboards to keep information visible. Schedule regular reviews weekly or monthly and commit to acting on what you see. Consistency matters more than volume. Turn Leading vs Lagging Indicators Into Action Understanding which signals matter is one step, but interpreting them accurately and applying them consistently is another. At First Steps Financial, we help organizations connect financial metrics with daily decisions through fractional bookkeeping and consultation. Our role is to guide you toward clarity, not overwhelm you with data. If you want support setting up meaningful indicators and using them with confidence, let’s chat.

Protecting Your Investment: What to Consider Before You Sign a Small Business Partnership Agreement

By Alisa McCabe • February 24, 2026
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Accounting for Small Business Owners: 5 Red Flags That Your Books are Broken (And How to Fix Them)

By Alisa McCabe • February 9, 2026
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