Do I need a Support Assistant and a bookkeeper?
Virtual Success Show
Want the transcript? Download it here.
Episode breakdown
In this episode, Matt and Barbara speak to Bean Ninjas founder and CEO, Meryl Johnston about why it’s so important for companies to have a strong financial team, what that team needs to look like, and why financial reporting tools are the key to business stability and growth.
- We explore Meryl’s journey from a consulting firm to global, systemized, online business and the perils behind bringing in virtual contractors before you have your processes in place.
There is a big difference between what a VA can do with bookkeeping and what a bookkeeper should be doing.
In this episode
00:00 Intro
The Virtual Success Show helps entrepreneurs master outsourcing to save time and focus on what they do best. Hosts Barbara Turley and Matt Malouf share real experiences and strategies for building the right team and avoiding common pitfalls. In this episode, Barbara reveals a mistake she made, offering insights on how to outsource effectively and in the correct order.
01:50 Xero as a platform
Barbara welcomes back Meryl Johnston, CEO of Bean Ninjas, to discuss a common outsourcing mistake. Barbara shares her own experience of relying on a VA and Xero instead of hiring a qualified bookkeeper. The decision led to costly issues over time. The episode highlights the importance of using the right professionals for financial tasks in virtual teams.
02:38 Aspects of utilizing virtual teams
Barbara, Matt, and Meryl discuss the common misconception of the “super VA” who can handle all tasks, including bookkeeping. Barbara shares how this mistake led to major issues in her business. Meryl explains that many clients come to her after failed attempts using only VAs and accountants, highlighting the need for clear roles, proper training, and trusted financial processes.
04:50 Boundaries
Barbara asks Meryl to explain the boundaries between VAs and professional bookkeepers in financial processes. She emphasizes the importance of clearly defining roles and responsibilities within a business, especially in accounting. This clarity helps ensure tasks are handled effectively and sets the foundation for successful collaboration between VAs, accountants, and business owners.
05:12 Key roles within the finance team
Meryl outlines key finance team roles: tax accountant (handles tax planning/compliance), bookkeeper (manages daily transactions and reports), virtual CFO (focuses on forecasting and financial strategy), virtual assistant (supports established financial processes), and the business owner (ultimately responsible). Early-stage businesses often rely on a tax accountant and VA, but Meryl stresses the importance of clear role definitions and business owner involvement.
08:21 Cost-effectiveness medium
Matt emphasizes that relying solely on VAs for finance is a mistake driven by cost-saving. Accurate financial records are vital—not just for business insight but also for personal goals like loans or raising capital. He praises Meryl’s clear breakdown of financial roles and urges listeners to revisit it, noting how each role becomes essential as a business grows and evolves.
10:14 Bookkeeping role vs VA role
Barbara shares how relying on a VA instead of a bookkeeper led to messy Xero accounts, especially with complex tasks like voiding invoices and payment mismatches. Meryl explains the common issue of bank balances not matching due to missed or duplicate transactions in Xero, which a trained bookkeeper can fix but a VA typically can’t. This mismatch caused Barbara’s accounting problems to escalate.
12:55 Differences with bookkeepers and VAs
Meryl explains that bookkeepers understand financial processes deeply, catch errors, and set up standard procedures, unlike VAs who may only follow tasks without understanding. Bookkeepers establish smooth operations, allowing VAs to assist gradually. Barbara agrees most businesses reverse this order, risking errors and stress for both owners and VAs, who often try to fix issues without proper training, sometimes worsening problems.
15:11 Stop doing book
Matt stresses that bookkeeping requires special skills and shouldn’t be outsourced without understanding its complexity. He advises assessing if a task needs expertise before delegating. Barbara adds she made the mistake of assuming VAs could handle bookkeeping because she didn’t know what she didn’t know and suggests consulting experts to avoid costly errors.
16:42 Xero cleanup
Barbara discusses Meryl’s Xero cleanup service, which helps fix messy accounts before starting fresh. Meryl explains their process begins with a health check and cleanup plan. Barbara and Meryl will host a webinar on this topic. Matt reveals only 5% of clients have their finance systems running smoothly, as many business owners delay finances until tax time, risking poor decisions based on gut feeling.
19:29 Reporting practices
Matt highlights that without meaningful financial data and proper reporting, businesses risk losing money. Tax reports differ from management accounts, which offer deeper insights. Barbara adds that relying on untrained VAs for financial data can cause errors, especially without proper structure. They agree it’s best to start with a skilled bookkeeper to set up accurate processes before involving VAs.
20:53 Where to start
Meryl recommends starting with a bookkeeper, then gradually introducing a virtual assistant as the business grows. In larger clients, VAs often handle tasks like raising invoices and managing missing receipts, while the bookkeeping team handles reconciliation and complex queries. This collaboration helps streamline processes and reduces the business owner’s workload.
22:10 Building skillsets
Virtual assistants can be trained to spot expense spikes and flag potential cost savings, gradually building their skills. Their role helps reduce questions to the business owner by managing accurate reports. Meanwhile, bookkeepers ensure transaction accuracy and work alongside VAs. This collaboration prevents costly mistakes and overload, relieving business owners from constant troubleshooting and fixing messy accounts.
23:22 Next steps
Meryl outlines the finance team growth: start with founder and tax accountant, then add a bookkeeper, followed by a virtual assistant, and finally a virtual CFO once accurate data exists. Proper setup allows VAs to handle invoicing efficiently. Matt stresses outsourcing finance tasks to experts for business growth. Meryl advises safeguarding data and training VAs properly. Barbara promotes deeper learning via upcoming webinar.
