How to Hire a Bookkeeper: Considerations + Free Job Template

how to hire a bookkeeper

When deciding if you should do your bookkeeping yourself or hire outside help, the decision is entirely up to you. For example, if you have the time to handle bookkeeping yourself, you might continue to do so to save money. On the other hand, if you’d like to use the time you spend bookkeeping focusing on other aspects of your business, then the cost of a bookkeeper may be worth it.

how to hire a bookkeeper

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A bookkeeper plays a crucial role in managing your money and making sure everything adds up. If you’re a small business owner, knowing when and how to hire a bookkeeper is vital. We’ll answer important questions, highlight signs that it’s time to bring in a bookkeeper, and guide you through the steps of finding the right fit.

Vital bookkeeper skills

This step helps evaluate the candidate’s proficiency in handling real-world bookkeeping responsibilities, providing a more comprehensive understanding of their capabilities. In the dynamic world of finance, challenges and issues are bound to arise. Virtual bookkeepers are adept at troubleshooting problems and finding solutions efficiently. Whether it’s reconciling discrepancies, addressing tax-related issues, or resolving billing discrepancies, their problem-solving skills are invaluable. Transparently discussing the financial aspects of the collaboration is essential. Inquire about the bookkeeper’s fees, billing structure (hourly or flat rate), and any additional costs to avoid surprises and ensure alignment with your budget.

Services offered

Remember, a good bookkeeper is not just about crunching numbers; they must also have excellent communication skills to interact with your employees, vendors, and clients. Networking with other professionals can also lead you to top-tier bookkeeping candidates. Attend industry events, workshops, and conferences to connect with proactive bookkeepers looking for new opportunities.

Key Steps to Hire a Bookkeeper

Bookkeepers create invoices, which are like bills for the things the business sells. They also keep track of money that the business is supposed to get from customers. Look out for candidates who can explain in detail what a general ledger account is. They should be able to detail what a balance sheet is and how general ledger accounts might be divided into different accounts. One of the best ways to distinguish between candidates is to use pre-employment skills testing.

She also regularly writes about business for various consumer publications. Use one of our recommended background check companies to make the process easier. Accountants are usually more skilled and in a more advanced position than bookkeepers. Being how to hire a bookkeeper an accountant usually involves a higher level of interpreting and forecasting numbers than bookkeepers, who mainly just keep the records. Make sure you’re on the same page about their pricing structure to avoid any billing hassles or hidden costs.

Here’s how a good bookkeeper can help your business

Experience in bookkeeping, proficiency in accounting software, and knowledge of relevant regulations are also important. Depending on your business’s complexity, you may consider candidates with specialized industry experience. To hire a bookkeeper, start by outlining your business needs and preferred qualifications.

  • They should be able to detail what a balance sheet is and how general ledger accounts might be divided into different accounts.
  • Following are some tips on how to find a good bookkeeper to help support your business — and to work remotely, if needed.
  • They can take away the day-to-day recording of receipts, invoices and other transactions.
  • They can share that information using cloud-based accounting software.
  • It’s kind of like a crystal ball that shows you the future of your bank account.
  • Not only should your candidates be able to manage accounts payable, but they should also be able to maintain records via accounts receivable as well.

Some bookkeepers do it all for you, and others can support you or be available to answer questions. Depending on what you’re willing to do yourself and how much you’re willing to pay, the services available to you might differ. If your revenue is on the rise but your bottom line won’t move, it means you need to increase your profit margins. Tax-ready financial statements from a bookkeeper can help you recognize where you need to cut costs in order to make your business more profitable. Compare your “salary” as your own bookkeeper against the price of professional bookkeeping.

  • It’s a crucial step in validating the capabilities of a potential bookkeeper.
  • Despite knowing their industry well, business owners may lack the detailed financial knowledge that a seasoned professional possesses.
  • It helps organize financial data, generate reports, and ensure accuracy.
  • Both bookkeepers and accountants are integral to a company’s financial management, but they have distinct roles and responsibilities.
  • I often talk to small business owners who are not sure what to ask when they are looking to hire a bookkeeper.
  • But Merchan has forbidden Smith from testifying about most of the issues involved in the case.
  • With their expertise in handling day-to-day finances, bookkeepers can free up your time to concentrate on essential aspects of business growth.

During interviews, assess their ability to speak finances without jargon. While it may seem that bookkeepers are mostly into accurate data entry, their role is so much more than that. Whether you do the bookkeeping yourself or hire someone to do it, certain elements are fundamental to properly maintaining the books. Some of these elements are done more regularly than others to ensure that the books are always up to date. Other elements are completed at certain time periods as necessary to complete a business task. When negotiating terms and conditions, discuss factors such as the salary or hourly rate, working hours, and location (remote or on-site).

  • Paper-based bookkeeping means gathering your physical papers and records and reviewing them in person.
  • More likely, you’ll be caught in an email or phone back-and-forth as the two of you puzzle your way through a year’s worth of uncategorized expenses and income.
  • That’s important when you’re trying to differentiate your business from your competitors.
  • Some bookkeepers do provide tax preparation services, but usually, they’ll be doing it from their own experience, as not all bookkeepers are professional tax advisors.
  • She also regularly writes about business for various consumer publications.

Types of bookkeeping: Basic vs. full-service accounting

How can you find out whether your bookkeeper candidates have the appropriate skills for the job? Not only should your candidates be able to manage accounts payable, but they should also be able to maintain records via accounts receivable as well. The accounts receivable test will give you the information you need on your bookkeeper candidates’ accounts receivable knowledge.

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