How to Choose the Right Bookkeeper for Your Small Business: A Step-by-Step Guide
As a business owner, you have a lot on your plate. You’re responsible for managing the day-to-day operations of your company, developing and implementing growth strategies, and making sure your employees are happy and productive. With so much going on, it can be easy to overlook one of the most critical aspects of your business: your finances.
That’s where a bookkeeper comes in. A bookkeeper is a professional who specializes in maintaining accurate financial records for businesses. They can help you keep your books organized and up-to-date, which is essential for making informed decisions about your business’s financial health.
If you’re considering hiring a bookkeeper for your growing business, here’s everything you need to know.
Why You Need a Bookkeeper
There are several reasons why hiring a bookkeeper is a smart move for your business.
First and foremost, a bookkeeper can help you stay organized. They’ll keep track of all your financial transactions, including sales, expenses, and accounts payable, and make sure everything is recorded accurately. This is crucial for tax purposes, as well as for making sure you have a clear understanding of your company’s financial performance.
Additionally, a bookkeeper can help you save time and energy. If you’re not a numbers person, trying to keep track of all your business transactions can be overwhelming. By hiring a bookkeeper, you’ll be able to focus on other aspects of your business that you enjoy and are better suited for, while still ensuring that your finances are in order.
Finally, a bookkeeper can provide you with valuable insights into your business’s financial health. They can help you identify areas where you might be overspending or where you could be generating more revenue. This information can be invaluable when it comes to making strategic decisions about the future of your business.
Responsibilities of a Bookkeeper
So what exactly does a bookkeeper do? Here are some of their key responsibilities:
Record transactions: A bookkeeper is responsible for recording all of your business transactions, including sales, expenses, and accounts payable.
Maintain accurate records: It’s not enough to just record transactions; a bookkeeper also needs to make sure that all of your records are accurate and up-to-date. This includes generating your balance sheet, profit and loss statement, and cash flow statement on a regular basis.
Reconcile accounts: A bookkeeper will reconcile your bank account and credit card statements to make sure that all of your records match up with your actual financial activity.
Help with taxes: Your bookkeeper can help you stay on top of sales and other types of taxes that may be applicable to your business. They can also work with your tax accountant during tax season to make sure everything is in order.
Track performance: A bookkeeper can assist with budget preparation and track your business’s performance against your budget. They can also help you come up with ideas to cut expenses wherever possible.
Qualities to Look for in a Bookkeeper
When you’re hiring a bookkeeper, there are several key qualities that you should look for:
Detail-oriented and organized: A bookkeeper needs to be detail-oriented and organized to make sure that all of your financial records are accurate and up-to-date.
Proficient in using accounting software: Most bookkeepers use accounting software to help them keep track of your finances. Make sure that your bookkeeper is proficient in the software you use or plan to use.
Trustworthy: Your bookkeeper will have access to sensitive financial information, so it’s essential that you can trust them to keep everything confidential.
Places to Look to Hire a Bookkeeper
There are several places you can look to find a bookkeeper for your business:
Recommendations: Ask your business contacts if they have any recommendations for a good bookkeeper. This is often the most reliable way to find someone who is trustworthy and capable.
Upwork: Upwork is one of the most popular freelance hiring platforms out there. It’s trusted by major companies like Microsoft, Airbnb, and Bissell. You can post a job on the platform and wait for candidates to apply, or you can search for bookkeepers and send them offers directly. Keep in mind that the bookkeepers on Upwork charge hourly rates that can range from $10 to $125 per hour.
QuickBooks Bookkeeper: If you’re already using QuickBooks for your accounting software, they offer their own certified bookkeepers who can help you maintain your financial records. QuickBooks bookkeepers work remotely and connect with you via video call, so they can help you no matter where you’re located.
How to Decide Who to Hire
Once you’ve narrowed down your list of potential bookkeepers, you’ll need to decide who to hire. Here are the steps you should follow:
Step 1: Prepare a list of questions to ask during the interview. You’ll want to ask questions that help you assess the candidate’s experience, knowledge, and organizational skills. For example, you might ask:
What’s your experience in bookkeeping so far?
How do you stay on top of changes in accounting regulations and standards?
What’s an example of a time when you had to deal with a difficult situation, like a discrepancy in financial records or a client issue?
How do you keep everything organized and ensure all bookkeeping tasks are done on time?
What specific bookkeeping software or systems have you used before? How confident are you in using them?
How do you keep sensitive financial information, like payroll records and tax information, secure?
Step 2: Evaluate candidates’ qualifications and experience. Look for candidates who have a degree or certification in accounting or bookkeeping and who have experience working with businesses in your industry.
Step 3: Check references and conduct background checks. Make sure to contact the candidate’s references to verify their work history, skills, and personal qualities. You should also conduct a background check to verify their employment history, criminal record, and education.
Next Steps
Hiring a bookkeeper is a smart investment for any growing business. Not only will they help you stay organized and on top of your finances, but they can also provide valuable insights into your business’s financial health. Make sure to take your time when hiring a bookkeeper and follow the steps outlined above to find someone who is trustworthy, experienced, and capable.
Remember, you don’t have to do it all on your own. With a bookkeeper on your team, you can focus on growing your business and leave the financial details to the experts.
