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How to hire a bookkeeper and tips

hiring a bookkeeper

Expertise Accelerated (EA) is a Connecticut-based outsourcing and staff augmentation specialist for accounting & finance services. EA is committed to delivering 60 percent quality-assured payroll savings to its US clients. When hiring a bookkeeper, it is paramount to acutely assess your bookkeeping needs. This assessment helps form a basic plan of what your bookkeeper must be proficient in. Bookkeepers provide a range of services as illustrated by Easy Books, and they must be vetted to fit your current as well as future needs. If the prospective bookkeeper operates in a firm with multiple employees, there will be more hands on the day-to-day processes.

hiring a bookkeeper

Conducting background checks involves verifying the information provided by the candidate, including their employment history, criminal record, and education. Lastly, the bookkeeper you get from QuickBooks helps you categorize transactions so that you’re all set for the tax season. The bookkeepers on Upwork charge hourly rates and the hiring costs range from $10 to $125 per hour. Accounting software helps bookkeepers make all financial processes efficient by eliminating errors and automating repetition.

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Every choice you make to sharpen your business finances is a step in the right direction. Bookkeepers are hired to manage the day-to-day bookkeeping tasks of the business, and can often be part-time, remote, or freelance positions. It’s the end of the month and you’re looking at a stack of receipts and outstanding invoices. You’d rather be working the sales floor or managing new customer relationships, but instead you need to find out if you’ve made a profit this month. Is it worth it to hire a bookkeeper to manage your small business finances? So whatever you do, don’t rush the recruiting and hiring process.

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. It’s best if you can find someone who uses the same accounting software as your accountant. Whoever you hire needs to be trusted with the everyday details of your business finances. They can also offer day-to-day support for small business owners.

  • Your bookkeeper may be knowledgeable on accounting concepts, but they might not be an expert mind reader on what’s happening with your business.
  • You can also ask friends or colleagues who have utilized bookkeepers for their businesses.
  • Then all of you will be able to share access to the financial data for your business.
  • So, you can take professional memberships as an indicator of your candidate’s professional status and commitment to his or her career.
  • Bookkeepers are responsible for preparing the company’s financial statements, balance sheets, cash flow statements, and more.

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. And you’d hire an accountant to handle official reporting and high level business advice. If you started your own business, it’s likely that you’re passionate about running it and concentrating on the tasks you love doing.

[COMPANY NAME]’s bookkeepers will ensure that our financial records are kept up to date and take responsibility for our payroll. If you own a small business, you might be used to doing many tasks independently. For example, you may be responsible for contacting your suppliers, marketing your products, monitoring sales, and responding to customer inquiries and complaints. Although you might think you’re saving money by managing your cash flow, you can do more harm than good to your money management. Communication styles are sure to vary between bookkeepers, so consider looking into how they interact with their current clients.

Asking what kind of accounting software your bookkeeper uses is important because it determines whether or not you’ll have administrative rights. If you don’t have rights to the software, you may have issues accessing your financial information if you don’t have access to the software your bookkeeper uses. The bottom line here is to make sure you have access to the data and files the bookkeeper will be working with to ensure transparency. By Provision for Depreciation Account Advantages, Calculation, you can hand off your finances to someone who already knows all the jargon and processes.

When It’s Time to Hire a Bookkeeper

If you already have a CPA taking care of your taxes, you may wonder why you’d also need a bookkeeper. The biggest difference between accounting and bookkeeping is the motive behind what they do. If you choose not to hire a bookkeeper, fire won’t rain down from the sky.

Just look for a bookkeeper with high reviews from other customers like you. Your company may be growing, and you’re having trouble keeping track of your finances. Or you may be thinking about selling your business down the line, and know you need immaculate books to do so. Create pre-employment assessments in minutes to screen candidates, save time, and hire the best talent. The numerical reasoning test will help you gain insight into your candidates’ ability to interpret fractions and percentages.

If your business is growing along and doing your own bookkeeping is overwhelming you, it’s usually right. The first thing to consider is the bookkeeper’s experience and qualifications. It’s important to hire a bookkeeper who has the necessary knowledge and skills to handle your specific financial needs. So find a bookkeeper willing to integrate accounting software into their bookkeeping process. In such cases, hiring a bookkeeper who can save you time, energy, and money is a wise decision.

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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. Finding and hiring your next professional bookkeeper can be a challenge, but the key way to simplify this process is to use pre-employment skills tests. How you use them can make a significant difference to your recruitment. After the skills tests have been completed, you’ll need to ask the successful candidates to attend an interview.

A remote bookkeeping service may use a custom app—as Bench does—that lets you message your bookkeeper directly. Since some bookkeeping firms also employ accountants, they may be able to handle your tax filing—and other accountant duties—in-house. Typically, it’s more expensive to hire a firm than a freelance bookkeeper, since firms have higher overhead to cover. That’s why it’s important to find a bookkeeper who knows what they’re doing. However, expertise is not only measured by years of operation, or by third-party certifications. Even if your bookkeeper is insured against errors and omissions, you—or your business—are on the hook in case of errors.

  • It’s important to accurately maintain your finances because they’ll help make tax time easier and give you a real insight into your business.
  • Mistakes could be made and important details could be lost or forgotten.
  • Hiring an accountant will provide business insights based on bookkeeping information.
  • Look for a bookkeeper who has a good reputation and has positive reviews from past clients.
  • If a bookkeeper is an accountant, they may charge $150 per hour or more.

That’s important when you’re trying to differentiate your business from your competitors. Real-time information is also vital if you want to make sound business decisions. Trusting the financial details of your business with anyone is a big step. There are many bookkeeping businesses, so you’ll have plenty of choice.

Hire A Bookkeeper Today!

An in-house bookkeeper requires a salary, benefits, and office space. This can be a great option for small businesses or startups that can’t afford to hire a full-time bookkeeper. However, while hiring a bookkeeper does free up some time for yourself, it’s important to still pay some attention to your books. Your bookkeeper may be knowledgeable on accounting concepts, but they might not be an expert mind reader on what’s happening with your business. It’s essential to check in with them so that their treatment of your transactions is appropriate and relevant to exactly what happened in real life. Figuring out channels of communication and your affinity with the bookkeeper is a fundamental requirement in the hiring process.

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. When a qualified bookkeeper is on the job, financial statements are prepared properly and according to accounting standards—so your accountant can quickly and easily file your taxes.

How confident are you when it comes to communicating with our organization and informing us of the nature of our accounts?

A competent, experienced bookkeeper should understand accounting software or show signs that they can adapt to new software. But this doesn’t mean that they can’t learn or are not experienced enough for the position. Your candidates’ answers will determine whether they proceed to the next stage of your hiring process. How can you find out whether your bookkeeper candidates have the appropriate skills for the job?

Your taxes will also be in order when it comes time to file, which reduces the possibility of going through a time-consuming IRS audit. The reports a bookkeeper creates can give you information on your company’s expenses, revenues, and profitability. Bookkeepers are professionals who are tasked with preparing accounts and documenting any financial transactions that take place on a day-to-day basis.

Svetlana Skrīvere