How to Protect Yourself From Bookkeeper or CPA Mistakes

December 29, 2025

Most small business owners assume their bookkeeper or CPA is handling everything correctly—and in a perfect world, they would be. But bookkeeping and tax mistakes happen far more often than people realize, and the consequences can range from inaccurate financials to IRS issues, missed deductions, or costly cleanups months or even years later. The truth is that even if you outsource your accounting, you are still responsible for the accuracy of your financials. That doesn’t mean you need to become an accountant; it simply means you need a few smart systems in place to protect yourself and your business.

One of the most important protections is maintaining ownership of all your financial logins. You should always have primary admin access to QuickBooks, payroll systems, and financial portals, along with your own login for bank and credit card accounts. If a bookkeeper or CPA sets everything up under their own credentials, you lose visibility and control—one of the biggest red flags I see during cleanup projects. Another essential safeguard is requesting monthly financial statements, including a Profit & Loss, Balance Sheet, and reconciliation report. And just as important as receiving these reports is understanding them. If you’re not getting monthly reporting, it often means your books aren’t truly up to date.

It’s equally critical to verify that your accounts are reconciled every month. Reconciliation is the backbone of accurate financials, and without it, your numbers simply can’t be trusted. Missing reconciliations lead to incorrect reporting, tax errors, unnoticed fraud, and costly cleanup work later. As a business owner, ask one simple question each month: “Are all bank and credit card accounts fully reconciled through the most recent statement?” If the answer isn’t a confident yes, that’s a problem.

You also need to verify that your tax returns have actually been filed—never assume they were submitted just because someone said so. Always request a signed copy of the filed return, the IRS e-file confirmation, and the signed authorization form. If those aren’t provided, you can call the IRS directly for confirmation. This protects you from non-filing penalties and keeps your business compliant.

Clear boundaries between roles are also necessary. Your bookkeeper should not be filing taxes, giving tax advice beyond their training, making journal entries they can’t explain, or moving money on your behalf. Each role—bookkeeper, accountant, CFO, CPA—serves a different purpose, and blurring those responsibilities can lead to serious mistakes. Documentation is another layer of protection. Keeping receipts, invoices, payroll records, contracts, and loan documents ensures that if questions ever arise, you’re covered. Good documentation turns potential issues into simple clarification instead of panic.

It’s also wise to schedule quarterly financial reviews with a trusted professional. This doesn’t require weekly meetings, but a quarterly check-in helps catch misclassifications, missing transactions, duplicate entries, incorrect owner draws, and financial statements that don’t reflect reality. Think of it as your business’s regular health check-up. Finally, trust your gut. If something feels off—whether it’s a strange transaction, a balance that never seems to change, reports that don’t make sense, or a professional who becomes defensive when asked questions—it’s worth digging deeper.

Outsourcing doesn’t eliminate oversight. Your bookkeeper or CPA should create clarity, not confusion. It’s your business, your money, and your responsibility to understand your numbers. The right professionals will empower you, communicate clearly, and support your long-term goals. The wrong ones create stress, inaccuracies, and unnecessary financial risk. With the right systems, documentation, and support, your numbers become a powerful tool rather than a liability.

At Outgrow Accounting & Finance, we believe transparency, communication, and accuracy are non-negotiable. If you’re not confident in the accuracy of your books or want a second set of eyes on your financials, we’re here to help you outgrow the overwhelm and step into real financial clarity.