A brilliant bookkeeper is central to the success of any business, so it just must be said, finding the right bookkeeper is essential for the development of your business.
There are many things to think about when you are seeking out a new bookkeeper and there is no secret formula for how to choose a bookkeeper. Having said that, checking for a few fundamental qualities that every bookkeeper should have will make them a great asset to your company.
When you start a new business, you have to deal with numbers. Even if your business is small or large, you must keep a record of its every transaction. Expenses, sales, wages – all money movements into and out of your business.
You can do the bookkeeping yourself, outsource the bookkeeping, or have a professional bookkeeper create a bookkeeping file for you in Xero or MYOB for example and you can follow on with the work yourself.
I hope this guide will explain why hiring a bookkeeper is a great idea and essential in doing business. Also, a few things to keep in mind so you can hire the right bookkeeper.
If you are just starting your business or you are micro-tuning your financial strategies, a professional bookkeeper can be an enormous help when it comes to balancing expenses daily, managing your invoices, etc. By handing these jobs over to a specialist, you can lower your risk of error and instead use those extra hours for other activities. I can hear you ask: but where do you find a bookkeeper, what do I need to know to choose one. Keep reading to discover how to locate the best bookkeeping services.
Give Thought To
Confidence & Security
Your bookkeeper will have access to vital private and personal company information. Bookkeepers keep up to date all financial records of a company such as invoicing, payroll and taxes.
You must be able to trust your bookkeeper. So before you hire a bookkeeper ask as many questions as you can about how that person safeguards your financial information by using tried and true methods and processes. If you have any little doubt about the reliance of the individual, you need to find a different bookkeeper. 100% reliance is what you should aim for.
You should always hire a fully registered bookkeeper. If you think you will save money by hiring unlicensed individuals to maintain your books, this can be a mistake as unregistered bookkeepers are more likely to make errors and cost you money in the long-run.
You will rely on your bookkeeper to keep on top of all those numbers; therefore, you are going to be communicating regularly. S ome individuals may be good at numbers but are no good at communicating which can be a detriment to your company. Your bookkeeper should be an amazing listener, attentive and interested during discussions regarding your company. You and your bookkeeper should have a relationship that allows for a flow of information between the two of you.
When you are seeking a new bookkeeper, ensure you select an individual that has a clear system for keeping track of paperwork. The paperwork of today may still be needed in 7 or more years from now.
Hire a CPA
If you hire a CPA to do a bookkeeper’s work, this is usually a serious waste of resources. I do not know one accountant the enjoys bookkeeping. CPA’s are best to advise you on financial matters requiring more expertise, such as managing investment funds or filing taxes. CPA’s regularly work with bookkeeping services and may be able to recommend professionals who can fill a daily accounting role for your business at a much lower price.
Hiring Professional Bookkeeping Services
Some bookkeeping service companies manage daily accounts for multiple businesses. They often employ CPA’s for management roles to provide adequate oversight and counsel for a bookkeeper who runs into a problem. Bookkeepers that have a variety of client often have access to a wider range of tools and have a better chance of having the experience needed by your business.
Hire a bookkeeper who has confidence
If you are seeking a bookkeeper, you will want someone who is confident. A good communicator is critical for a job like this. With Bookkeepers Bunbury, you will get more than a bookkeeper, you will gain a valuable asset to your organisation who makes a real contribution.
Hire a bookkeeper that understands
The bookkeeper you hire should gain quickly a firm understanding of your business, it financial situation, you short and long term goals. If you find a bookkeeper who shows little understanding and lack of commitment – do not hire them.
Hire a bookkeeper for their skills
If you are a business owner you probably don’t have the time or skills to manage the bookkeeping role anymore. Maybe when you were just starting your business you made time for bookkeeping but now your business is too big and you don’t have the time any more. Currently you squeeze the bookkeeping in when you can which is creating errors, inaccuracy and omissions. It is time to engage a professional bookkeeper.
Why You Need A Bookkeeper
Time Saver – processing receipts, expenses and payments is only a tiny part of the bookkeeping work. Bookkeepers know how to assign expenses, they will know how to enter them into your accounting software and make sense of them which in turn provides useful report to you the business owner. Bookkeeping is a skilled job and your bookkeeper will do it more efficiently than you can.
Cash Flow – accountants provide advice, annual returns, tax information but they do not see your accounts every day. Your bookkeeper will keep an eye on everything and keep your cash flow under control.
If you understand your business requirements then you will be able to hire the perfect bookkeeper for your business. Some questions to think about are:
- what type of business are you in,
- how many transactions do you make daily, weekly, monthly, (affects time),
- which accounting software are you using, online, data sharing,
- what about credit control, payroll services,
- what are the key dates for your business, ie payroll days.
Hiring a bookkeeping service to manage your accounting needs can help you to identify potential risks and opportunities. Your bookkeeper will be with you every single step of the way as your business grows.