How To Hire The Right Bookkeeper For Your Small Business

How to Hire a Bookkeeper

Keeping track of high volumes of transactions can be time-consuming for growing businesses. In the end, a bookkeeper maintains your books so you or your accountant can see where money is coming from and where it is going. Prepare invoices for customers and manage accounts receivable . Manage payments to vendors, financial institutions, etc., and accounts payable . Reconcile your books with the monthly balances you receive from your financial institutions and correct discrepancies. They save you time by handling all the daily financial work for you and allow you to concentrate on the running of your business. The real-time information they collect can help them offer you new insight into your business.

If you don’t have time to complete the work, you may rush through tasks and make errors. As we mentioned, knowing when to delegate bookkeeping tasks instead of doing them yourself is a rather important decision. Even if they may not have direct experience in your industry, look for situations the bookkeeper has been in that could directly translate to FBA. For example, they may have inventory experience from working in retail. Because no two bookkeepers are the same, you’ll need to know what they can do, what you will need to train them on, and what would be best maintained by you.

They have learned that it is better to invest in a good bookkeeper than to cut corners. Having How to Hire a Bookkeeper a bookkeeping managing and maintaining your business’ financials is easier all the way around.

Use our free Excel test to assess your candidates before hiring. For example, if you operate in the construction industry, a bookkeeper coming from a restaurant may not be the best choice. This means you need to keep in mind those must-have qualifications for the bookkeeping position.

Experience is Essential – Be sure to check if proper certifications are held by staff members of the bookkeeping solution you are considering. Inquire about the different types of companies the potential partner currently works with, to provide insight into the firm’s overall breadth of experience. Request to speak with a current client who would be willing to dedicate five minutes to speak on their experience with the prospective firm. Problem Solving – Even more than a number cruncher, bookkeepers and accountants are problem solvers. Why doesn’t our gross-profit-by-job report pass the “sniff test? ” Rather than skipping or glossing over a problem, an excellent bookkeeper will analyze the options, gather information and develop solutions to fix it. Congratulations, you’re in the same position as 99% of other small businesses.

Right Experience And Expertise

You won’t get this kind of flexibility with an in-house employee who only works from 9 AM to 5 PM, five days a week. Even if you’re skilled at bookkeeping, it is always wise to have someone from the outside who can offer you a fresh perspective on your financials. Moreover, you probably don’t have enough time on your hands to double-check all the accounting tasks you perform. Neglecting day-to-day accounting responsibilities or making errors can lead to serious consequences.

How to Hire a Bookkeeper

See our list of bookkeeper interview questions for examples . As of April 2021, bookkeeper jobs in the US are moderately competitive compared to other job markets, with an average of 39 job seekers per bookkeeper job. Check out Bookkeepers with the skills you need for your next job.

Where To Find Candidates

If you own a midsize business with a few accountants, one of the accountants may be able to take on bookkeeping responsibilities. Many bookkeepers are able to prepare tax returns for individuals, but not for large companies. To attract highly qualified bookkeeper candidates, a well-written description is important. A comprehensive bookkeeper job description includes a summary of the role, a detailed list of duties and responsibilities and the required and preferred skills for the position.

CPA’s tend to handle tax return filings and services that that require higher accounting knowledge and carry a higher liability. That might be convenient, but I would compare if there is a cost savings for doing it this way versus hiring a standalone bookkeeper who can consult your CPA when needed. This way, the bookkeeper is more accessible and generally more flexible.

  • Our goal is to give 110% so they can rest easy knowing their financial status is taken care of which allows them more time to focus on the growth of their business.
  • Online bookkeeping solutions use cloud-based software to connect you with a team of bookkeepers who handle your books for you.
  • Look for experience and a substantial number of past clients – preferably ones in the same field of business as you.
  • The costs of bookkeeping for a small business will depend on many factors.

Don’t worry if the bookkeeper seems a little defensive.He or she may feel you are grilling them or suspicious. I recommend approaching them from the standpoint of you need their help and you wish to take more responsability for your financial record-keeping. If you would like to be more independent, pursue training through Seminars, DVD’s, or individual consulting. Cloud-based bookkeeping software applications allow you to instantly share all of your financial data with a virtual bookkeeper for real-time expenses and statements. “dead” data, you don’t have an accurate picture of revenue or future cash flow.

Browse Related Bookkeeping Services

Suppose you went all year without preparing monthly financial statements and then handed off your business records to an accountant to file your taxes. They’d have to go back and prepare financial statements retroactively—effectively, doing a bookkeeper’s work. Accountants, however, are not all Certified Public Accountants .

  • No job is too big or small, and you could start receiving quotes for Bookkeeping services within minutes of submitting your request.
  • Once your business has outgrown your bookkeeping capabilities, it actually can be dangerous to keep trying to do it on your own.
  • You could use a specialized staffing agency to find skilled candidates who would be a solid match for your company until you’re ready for a full-time hire.
  • They must take 24 hours of continuing education each year to maintain their license.
  • Choosing not to hire a bookkeeper will not result in the end of the world.

We can get you connected with an experienced bookkeeper through our Xero advisor directory. Robert Half can help the people we place securely access necessary data and applications, including virtual desktops. For workers who lack the necessary equipment at home, we can quickly provide technology tools to help them jump into action immediately.

The Average Price Of Bookkeepers Is $250 Per Month

A DIY approach to your small business’s finances might not cut it…. Accountants will either quote a client a fixed price for a specific service or charge a general hourly rate. Basic services could cost as little as $20 an hour, while advanced services could be $100 or more an hour. A CPA is an accountant who has met their state’s requirements and passed the Uniform CPA Exam. They must also meet ongoing education requirements to maintain their accreditation. CPAs have passed the Uniform CPA Exam – a challenging exam that tests knowledge of tax laws and standard accounting practices. Each sale and purchase your business conducts must be recorded in the ledger, and some items will need documentation.

How to Hire a Bookkeeper

They may be able to import expenses remotely, cutting out email threads or trips to the office. The time a bookkeeper puts into your business is determined by how many transactions you process per month, whether you have employees, and how complex your industry is. A freelance bookkeeper is the most affordable option if your finances are simple, and you’re okay with your bookkeeper not being available for you every single business day. Additionally, as your bookkeeper will be working remotely, you will not have to pay for overheads such as their internet connection, laptop, office supplies, and more. In other words, with a remote bookkeeper, you get the same experience and talent as an in-house bookkeeper but for a fraction of the cost. As an owner of a small business, it is not unusual to wear multiple hats to get your business off the ground. However, there is only so much you can do, and at one point, you must hand over some of your responsibilities to other people.

Should I Hire A Bookkeeper? What Does One Do Exactly?

Derek’s blend of extensive international business and travel experience means that outsourcing came relatively naturally to him. Derek has been in business over 20 years, outsourcing for over seven years, and has lived in Manila, Philippines – the world’s outsourcing capital – for over three years. He has worked and lived in five countries and worked and traveled through dozens more.

Some bookkeepers are a one-man operation while others work within large and diverse teams. One is not necessarily better than the other, but it’s important to understand the depth and breadth of resources at your bookkeeper’s disposal. They should also articulate what happens if those promises are not met.

Open-ended questions and ice breakers are great ways to start a conversation with an applicant. But you have to determine the applicant’s skill level and proficiency with bookkeeping tasks. If you’re interested in hiring a contract bookkeeper, consider Upwork. It has both hourly and fixed-rate options, skill-testing features, and protection if you need to file a dispute or initiate remediation. Once you submit the job you want performed, you’ll receive proposals back from freelancers, a price quote, and a turnaround time. Robert Half has years of experience placing bookkeepers with clients on both a temporary and full-time basis. And our recruiters are well-versed in helping companies hire remote workers.

Things To Consider Before Hiring A Remote Bookkeeper

And bookkeeping might not be something you enjoy or have time to understand. If you opt to hire a bookkeeping employee and want more in-depth tips, check out our guide to hiring employees. Most bookkeepers should have at least some experience with Microsoft Excel.

Catch abnormalities and keep your teams accountable with Divvy’s reporting tools. When all signs point toward professional help, it’s time to take the next step. When it comes to the question “Does my small business need a bookkeeper? In addition to causing burnout, overworking adds up to dollars per minute.

Other small businesses hire a bookkeeper or employ a small accounting department with data entry clerks reporting to the bookkeeper. Bookkeeping is a transactional and administrative role that handles the day-to-day tasks of recording financial transactions, including purchases, receipts, sales and payments. Accounting is more subjective, providing business owners with financial insights based on information gleaned from their bookkeeping data. In simple terms, your bookkeeper will keep your records and financial statements neat and organized. Your bookkeeper will also handle billing, with both accounts payables and accounts receivables. It’s common for a small business bookkeeper to manage payroll as well. One common monthly task is the maintenance of the businesses financial books.

  • I am a Xero Certified Advisor, Quickbooks Pro Advisor , Quickbooks Online Pro Advisor .
  • In a world where things are constantly changing, it’s important that your bookkeeper maintains current software.
  • A good bookkeeper knows how transactions should be treated to provide useful business reports.
  • Along with some of the things I have suggested, follow your gut and intuition when hiring a bookkeeper.
  • In both cases, if you use dedicated bookkeeping software, you should ensure that your bookkeeper uses the same brand.
  • And as your business grows, you’ll also need to know your way around a balance sheet to make judgments about your business’s financial health.

Having been in various businesses since 17 years old, Derek is a fully committed entrepreneur. He has founded and bootstrapped two 8-figure businesses, enjoyed fantastic successes, as well as his fair share of challenges.

How Are They Different To Accountants?

This results in poor decisions and it is much harder to interpret the results. QuickBooks can be useful for small businesses depending on their size and familiarity with it.

Whats The Difference Between An Accountant And A Bookkeeper?

But you may limit your financing options, make big mistakes in pricing and costing, or make bad decisions based on bad information. You shouldn’t be worried about outsourcing your sensitive data and how much a bookkeeper costs. With the right knowledge and a helpful app, you can make sure you don’t have to fork out for an expert.

Things To Consider When Hiring A Bookkeeper

However, you might hire a CIA if you want a more specialized focus on financial risk assessment and security monitoring processes. A CIA is an accountant who has been certified in conducting internal audits. To receive this certification, an accountant must pass the required exams and have two years of professional experience.


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