How do you find a bookkeeper that is ideal for your business size? Is it a good idea to hire a freelance bookkeeper instead of having a full-time employee? What benefits will you get from hiring a freelance bookkeeper?
And are you ready for a bookkeeper that will handle all of your requirements online rather than taking up office space at a time when we are struggling to even sit alongside our regular colleagues?
How to hire a bookkeeper
When it comes to selecting a bookkeeper or third party, the process shouldn’t be too different from the hiring of any other professional. Just ensure that before looking at candidates you understand your own requirements. Once you do, you can then work on identifying people for the role.
Some factors you should think about include:
What type of business are you?
The niche and type of your business determine the sort of bookkeeper you’ll need. For instance, retail and service companies have different bookkeeping requirements than manufacturing businesses.
How many transactions do you handle?
How many transactions you make on a monthly, weekly, and daily basis helps determine the required bookkeeping time. Whether you’re a small business or a large one with a plethora of monthly transactions, we can handle it all online.
What’s your accounting software package?
The accounting software you use also determines the qualities you should look for in a bookkeeper. For instance, if you use online accounting software, you’ll need to hire someone who is adept at modern accounting software programs. This way, your bookkeeper can share accounts and transactions securely at any time.
What specific services do you require?
The bookkeeper or bookkeeping service you choose to enlist will be determined by the services you need. As an example, if you need debt collection, payroll, and credit control services, you’ll want to hire someone proficient in all these things.
What makes a bookkeeper worth hiring?
Hiring a bookkeeper can be one of the most important decisions you make for your company. While a good bookkeeper can meet your business goals and improve your business reputation, the errors of an incompetent hire may take years to rectify.
To ensure you only get the best of the best, read on to discover the attributes and skills for a bookkeeper:
Experience with an organization similar to yours
It can be said that a good bookkeeper serves as the glue holding the whole organization together. Therefore, it’s important to have previous bookkeeping experience with a company that has a complexity and size similar to yours. Similarly, you should look for someone who has worked with a firm that is at a similar point as your firm in a business lifecycle. For instance, a high-growth start-up would have different bookkeeping needs compared to a 30-year-old automobile company.
In addition, a competent bookkeeper should display the natural ability to think and plan ahead and anticipate the business needs even before they arise. Also, they should have experience with working in your niche and understand its unique bookkeeping requirements.
Education and additional training
While it is true that an accounting degree is not necessary, a good bookkeeper must have sufficient education and training. Your perfect bookkeeper has the ability to make quick business decisions, alongside a solid understanding of basic finance and business accounting. Meanwhile, ongoing training is needed to be aware of the changes to accounting procedures and rules.
Adept with technology
To survive in today’s fast-moving financial environment, it’s important that you use a software system to manage your books and keep the company’s finances updated. The right bookkeeper should have sufficient training and experience with accounting and bookkeeping software.
In addition, they should know how to use common tools like Microsoft Excel as well as other industry-specific systems, such as billing and estimating set-ups. It’s also beneficial if they’re familiar with performing bank reconciliations and processing online transactions.
A keen eye for details
Given the nature of the job, it’s essential for the bookkeeper to pay attention to detail. They should be able to identify errors and balance accounts quickly, as well as knowing how to generate accurate, concise, clear, and timely financial reports. Even though they may not be physically sitting by your side, with our experienced team of bookkeepers, you’ll get all that and more.
Familiar with cash flow and credit management
It’s essential for your bookkeeper to keep on top of the cash flow and anticipate the cash flow requirements. Factors like recurring annual events, bonuses, taxes, and business seasonality must be considered when determining cash flow needs. Your hired bookkeeper must have the ability to balance all these requirements so that business stability is maintained.
In addition, the bookkeeper should know the right way of using credits when the cash flow is low. Controlling debt expenses must also be accounted for and an adept bookkeeper will know how to find the most favorable terms and rates for credit.
Tax planning and preparation
When tax season is on the horizon, you’ll want a bookkeeper that is prepared and aware of the applicable tax deadlines for events such as the quarterly tax estimates. They should also be able to keep receipts and books well-organized for tax seasons and audits.