How to Hire the Right Bookkeeper for Your Business
Tired of spending time crunching numbers? Or have you set big goals for your business this year and need more time to focus. Maybe it's just extra free time you want to unwind / spend with the family. Whatever the reason, you're here because you decided to hire someone to do your books.
This is a very important decision for your business because you're hiring a partner to help you manage keeping track of the money coming in and coming out of the business, assessing your financial health and making sure you're ready come tax season.
Hiring the right bookkeeper can transform how you run your business. Beyond managing transactions, they can offer insights to help you maximize profit, plan for tax obligations, and keep a pulse on your business’s financial health. The clarity, peace of mind and time you'll get back to focus on your company is invaluable but the last thing you want to do is hire the wrong resource and ruin all that zen and extra time you covet.
Below are some 6 steps to follow to help you ensure you're hiring the right partner and resource for your business.
1. Define Your Needs
Before you start searching, it's crucial to determine what specific services you need from a bookkeeper. It's not uncommon for business owners to handle paying bills and following up on invoices with customers themselves and simply rely on bookkeepers for just categorization and reconciliation. Here's a list of services to consider having a bookkeeper take off your plate:
Categorize transactions ensuring accurate tracking of income and expenses
Reconciliation of your accounts, monthly, to catch discrepancies and maintain accurate financial health
Account Receivable ensuring timely invoicing and effective follow-ups to improve cash flow
Account Payable to maintain good vendor relationships and take advantage of early payment discounts
Payroll to ensure employees are paid accurately and on time, while maintaining compliance with tax regulations
Sales Tax to ensure compliance with tax authorities and avoid penalties
2. Choose Between In-House or Outsourced
The next decision is whether you want to hire an in-house bookkeeper or outsource to a professional service. In-house bookkeepers offer the advantage of direct communication and deep familiarity with your company’s inner workings. However, they come with overhead costs, such as salaries, benefits, and training. On the other hand, outsourcing offers more flexibility. You can hire a virtual bookkeeper for a fraction of the cost, without needing to worry about benefits or payroll taxes. The choice ultimately depends on your budget and how hands-on you want your bookkeeper to be.
3. Do Your Research
Once you’ve defined your needs and made the decision between in-house and outsourced, it’s time to dive into research. Check out bookkeeping services, read reviews, and ask for recommendations from other small business owners. Don't just focus solely on years of experience, evaluate their credentials—look for certifications such as QuickBooks ProAdvisor, bookkeeping diplomas, or specialized training that demonstrates their expertise. Also, don’t hesitate to ask for references if you feel the need. This diligence can make all the difference in finding someone who’s skilled and also reliable.
4. Ensure They Specialize in the Right Software
Technology has transformed bookkeeping, with specialized software making financial management easier and more effective than ever. If you’re using QuickBooks Online or another bookkeeping platform, make sure your bookkeeper is proficient with it. Proficiency in your software of choice allows the bookkeeper to extract the most value for you, such as integrating other business solutions you use and utilizing advanced reports that you may not be aware of to extract deeper insights. This ensures a seamless transition and proper integration of all your financial data, as well as optimized workflows that improve efficiency, minimize human error, and maximize your time.
5. Understand Their Communication Style
Communication is a crucial aspect of every business relationship. The right bookkeeper is someone who can simplify complex financial concepts and keep you updated regularly, ensuring there are no surprises when it comes to books. During the interview, ask questions about how they manage communication—do they prefer email, calls, or video meetings? Will they provide you with regular financial reports or only on request? A good bookkeeper will communicate clearly, keep you in the loop, and make themselves available when you need guidance.
6. Understand the Value They Deliver for the Investment
Finally, when hiring a bookkeeper, it’s important to understand the value they’re providing for the price you’ll pay. Remember that cost shouldn’t be the only deciding factor—a cheaper bookkeeper who makes mistakes or lacks experience can be far more costly in the long run. Consider the skills, certifications, and experience they bring to the table. A good bookkeeper will not only save you time and headaches, but they will also help you improve cashflow, minimize taxes, and ultimately be a resource to help make your business more profitable. For more on value take a look at our blog, The Benefits of Hiring a Bookkeeper for Your Business.
Take the Leap Towards Financial Clarity
Hiring the right bookkeeper for your business can be one of the most transformative decisions you make as a small business owner. By defining your needs, choosing between in-house and outsourced services, doing the necessary research, ensuring software specialization, understanding their communication style, and assessing the value they bring, you’ll be well on your way to finding a bookkeeper who will help elevate your business.
Take your time and be deliberate in your choice. Remember, the right bookkeeper is not just a record keeper but a partner in your journey towards success.
Schedule a call with us and let’s see if we’d be the right fit for you.
