The Guide to Hiring a Bookkeeper for a Small Business

However, you want to at least include education, experience and licensing requirements in your job description. For a small business with relatively straightforward finances, it’s generally more affordable than either a freelancer or a firm. Your company may be growing, and you’re having trouble keeping track of your finances.

Cloud accounting platforms and purpose-built bookkeeping software both play pivotal roles in enabling accurate tracking in an efficient manner. As we’ve covered in this guide, a bookkeeper is highly valuable to a small business and can provide more services than just financial recording and compliance. Often a bookkeeper will specialize in a particular industry, so it pays to ask them about this so that they can add even more value. Make sure that you get the best out of your business by hiring a bookkeeper to help you along your journey. If you started your own business, it’s likely that you’re passionate about running it and concentrating on the tasks you love doing.

  1. However, it helps to have a two- or four-year degree in accounting, finance or related discipline.
  2. Virtual bookkeepers possess analytical skills that enable them to interpret financial data and identify trends or discrepancies.
  3. Learn how QuickBooks Live Assisted Bookkeeping can help you streamline your bookkeeping and free up time spent on finances.
  4. This can spotlight customer purchase patterns, personalized profitability insights, seasonal fluctuations, and other intelligence human bookkeepers rarely have bandwidth to provide.

However, expertise is not only measured by years of operation, or by third-party certifications. The books of an ecommerce startup are different from the books of a dentist; try to find a bookkeeper who has worked with businesses like your own before, and has experience in your niche. Even if your bookkeeper is insured against errors and omissions, you—or your business—are on the hook in case of errors.

Do certifications matter?

You know what a bookkeeper does and what their day-to-day responsibilities look like. But how do these job duties translate as benefits for your business? A bookkeeper can help ensure your business finances are organized and lets you focus on running and growing your small business.

This means putting each expense in the right category, like rent or supplies. Meanwhile, here are answers to some questions you might have about how to hire a bookkeeper for your company.Let Robert Half help you hire your next bookkeeper. These questions should give some insight into how the candidate thinks and processes challenging scenarios in a professional environment. Bookkeepers in the United States are not legally required to obtain a license, but they can participate in several voluntary certification programs. You also want to be sure that your bookkeeper has experience with the recordkeeping system and software your organization uses, or you’ll need to provide training.

A firm may employ a range of bookkeepers, from beginners to experts. It’s important to ask if they guarantee a certain level of quality, so the accuracy doesn’t change from person to person. There are lots of places online to find a quality freelance bookkeeper, but is a good place to start. Just look for a bookkeeper with high reviews from other customers like you. If you have a paperless office with digitized documents, you may find you’re comfortable hiring and working with a freelancer online.

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Answer these questions in advance to get applicants excited about joining your company. While bookkeepers have no licensing requirements like a CPA, voluntary organizations can certify applicants. You want a bookkeeper who is up-to- date on relevant laws and maintains a certain skill level.

It’s best if you can find someone who uses the same accounting software as your accountant. The cost of using these agencies depends on the type of service you need. Hiring an in-house bookkeeper is ideal if you have a medium-sized business and want to keep track of the bookkeeper’s day-to-day duties. However, this type of bookkeeper requires a steep financial investment. If you hire an in-house bookkeeper, you must pay for all the resources they need, including their salary and employee benefits. Kelly Main is staff writer at Forbes Advisor, specializing in testing and reviewing marketing software with a focus on CRM solutions, payment processing solutions, and web design software.

Vital Skills and Experiences to Require in a Bookkeeper

The amount you choose will vary based on your company’s location, the experience you’re requiring, whether they’re contractors or employees, and the industry in which your company operates. For example, if you run a restaurant where employees routinely have tips, minimum wage is frequently an issue. You’ll likely want a bookkeeper that’s worked in the same industry. So, make sure your job description is clear about the job history and experience you need. Remote bookkeeping services, like firms, have multiple employees. This lets them avoid the kinds of service gaps that may crop up with an individual freelancer.

She has a deep passion for technology and a keen understanding of the HR and payroll industry. Throughout her career, she has diligently stayed up-to-date with the latest advancements in HR and payroll software, constantly exploring new features, trends, and emerging technologies. When selecting a bookkeeper, prioritize qualifications like experience, attention to detail, and proficiency in accounting software. Look for a professional with strong communication skills to ensure clear collaboration. Verify their track record and consider client reviews for credibility. Assess their ability to adapt to your business needs and maintain confidentiality.

You can organize your books and collaborations with Zoho Books on one platform. The software allows you to add your bookkeepers and accountants and monitor them through the platform. In addition to invoicing and billing reminders, Zoho Books can access your bank accounts and payments to organize your expenses. It also allows you to keep an inventory of your office supplies or product stock to know when and how to replenish them easily.

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You can also track their progress through the platform’s Live Bookkeeping Hub. QuickBooks Live can also arrange your books in preparation for your tax filing. In today’s digital age, we’ll also talk about virtual bookkeepers and the skills they bring to the table. Plus, we’ll share common mistakes to steer clear of during the hiring process. Whether you’re looking for a bookkeeper for a small business or considering becoming an online bookkeeper, this guide is your simple roadmap to better financial management. Let’s dive in and make hiring a bookkeeper a breeze for your business.

Past work experience can often be the most telling indicator of how well the candidate will adapt to your specific business needs. Make sure to validate any certifications claimed by candidates through the issuing organization to ensure credibility. Beyond backward-looking data, Uplinq’s moving corporation to another state algorithms surface emerging trends, growth opportunities, and other powerful intelligence no human bookkeeper could realistically provide. With categorization and reporting automated, your books stay perfectly up-to-date allowing you to generate key financial statements on demand.

Or you may be thinking about selling your business down the line, and know you need immaculate books to do so. A trial period allows you to assess a bookkeeper’s performance in real-time. Skipping this step may mean committing to a long-term arrangement without a clear understanding of their capabilities. Neglecting to address cybersecurity measures can expose your business to potential risks.

Some commit to exacting standards for quality and consistency, and some, quite frankly, do not. The challenge is identifying which bookkeepers you can trust with your finances before you actually formalize your relationship. Without proper bookkeeping, it would be easy for transactions to go unrecorded, left to pile up until the end of a financial period.

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