hiring a bookkeeper

Without accurate financial records it can be difficult, if not impossible, to see where your business is heading. Bookkeepers are trained to catch small mistakes that can lead to big consequences, such as running out of cash. When finding a bookkeeper for your small business, you need someone who is trustworthy and able to keep your company’s financial details confidential. You can opt to hire a full-time bookkeeper, but many small businesses start by using a contractor until they grow into needing an employee on staff. You most likely did not start your business to spend all of your time doing the bookkeeping.

Whether you want to hire an in-house bookkeeper, a third-party bookkeeper or an online service, you’re going to have to pay something. A bookkeeper can be someone who does more than just keep track of numbers for you. They can walk you ultimate guide to saas revenue recognition in 2023 through certain processes and explain why those processes are important so you don’t feel left in the dark when it comes to your accounting. They can cost more than doing your own bookkeeping, and they might not always be necessary.

  • You may pay around $26.30 to $42.52 per hour to a freelance bookkeeper.
  • Many local bookkeeping firms can provide references, helping you to hire the best bookkeeper in your locality.
  • According to Starling Bank, an average micro-business (one to five employees) spends about 15 hours per week, or 19% of its time completing financial administration work.
  • They’ll be best placed to answer questions about where the money is coming from, and where it’s going.

It is typically easier to maintain clean books throughout the year rather than trying to prepare for taxes when tax deadlines are already close. When you’re first starting your business, a bookkeeper can be especially helpful in this regard. Many of our own clients just want to talk to our bookkeepers to go through all the basics.

The time management test will let you know whether your candidates can successfully manage their time and meet deadlines with consistency. We have mentioned that communication is critical for your bookkeeper candidates. A communication skills test will assess how competently and precisely your bookkeeper can communicate in a professional context and interpret non-verbal cues. Cultural fit is an important factor to consider when hiring any new employee, and hiring a bookkeeper is no different. So, we recommend that you use hard skills tests and soft skills tests to assess your candidates. You might be wondering how to choose the particular skills tests for your bookkeeper candidates to assess their skills.

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Certified public bookkeeper

One reason for this is that bookkeepers have the experience to efficiently manage your bookwork, giving you more time to focus on other areas of your business (like increasing profit). Since accountants generally charge more for their time than bookkeepers do, it means you’ll end up paying more. If you have a bookkeeper do the job properly in the first place, you’ll save money in the long run. Bookkeepers are expected to do the day-to-day recording of receipts, invoices and other transactions. Hiring an accountant will provide business insights based on bookkeeping information.

As stated, it’s dependent on your company’s needs and how you plan to grow your business. When you first open your business, you might be able to run everything by yourself. Eventually, hiring a bookkeeper will become a vital step to help ensure continued growth for your business. Continue reading for 5 signs that indicate it’s time to hire a bookkeeper for your business. One survey shows that, on average, companies’ profits increase 16% after they hire bookkeepers.

The background check performed on an employee must be related to the duties of the job. For a receptionist, for example, you could run a simple seven-year criminal background check. However, for a bookkeeper, I recommend you include a financial background check. Many companies have a background check policy to run a criminal background check on all new hires.

hiring a bookkeeper

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. The amount bookkeepers charge will depend on where they’re located, experience, industry type, and other services needed. Accountants have more education under their belts, and with additional qualifications come higher rates. Bookkeeping requires fewer skills and work, so hiring a bookkeeper instead of an accountant can save you money in the long run.

Related business insights and resources

If a remote bookkeeping service is worth hiring, they ought to be able to guarantee a certain level of quality. For instance, at Bench, all bookkeepers get training and ongoing education in bookkeeping, in addition to having multiple full-time staff dedicated just to quality and standards. This lets them avoid the kinds of service gaps that may crop up with an individual freelancer. As you shop around, try to find out whether the remote service you’re considering is able to work with accountants.

hiring a bookkeeper

Your company culture is critical to success, and you will want your bookkeeper to have values that align with your organization’s culture. The test is unique to your organization as you can customize it for your company. Use the test to determine whether your bookkeeper candidates’ interests align with the values of your organization.

Best Questions To Ask References When Validating A New Hire

A bookkeeper with good communication skills can provide valuable insights into various financial aspects of your business in simple language. A Certified Public Bookkeeper charges less than a Certified Bookkeeper (CB), and they would have spent at least 2000 hours or a year doing bookkeeping. They are certified by the National Association of Certified Public Bookkeepers (NACPB). But Bookkeeping certifications are optional and are not the same as accounting, where a Certified Public Accountant (CPA) designation is required.

Robert Half has years of experience placing bookkeepers with clients on both a temporary and full-time basis. And our recruiters are well-versed in helping companies hire remote workers. An active membership in a professional group also helps a bookkeeper stay current with news, trends and best practices in the industry. Also, members sometimes carry professional indemnity insurance through these groups, which offers added peace of mind for you. 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.

  • You can access your account through a mobile app for on-the-go tracking.
  • Get an upfront quote from your bookkeeper and only hire one if you’re confident enough to share your sensitive financial information.
  • This assessment helps form a basic plan of what your bookkeeper must be proficient in.
  • By hiring a bookkeeper, you can hand off your finances to someone who already knows all the jargon and processes.
  • It can be rather time-consuming to handle all the bookkeeping needs of your growing business.
  • Your business needs someone who can closely monitor the little things when your business is expanding.

You already know it’s time to hire a bookkeeper for your business. Listen for detailed answers from your bookkeeper candidates about how they spot errors and whether they use any particular process. Entering data will be a critical part of your bookkeeper’s daily task. Use the working with data test to determine whether they are expert data entry specialists and can analyze data accurately every day.

Solo bookkeeping vs bookkeeping firm

You don’t need to worry about your bookkeeper getting sick or leaving on vacation, since your books can be picked up by other other bookkeepers at the firm. Two good answers are using digital approaches, such as accounting software to enter data accurately and keeping your workspace clutter-free. But, look for answers that show your bookkeeper candidates’ ability to use their organizational skills to optimize their workflow and productivity. This question is important because not all bookkeeper candidates will know the bookkeeping software you use.

Bookkeeper job requirements

Once you get an idea of how much they charge, compare it to other reputable bookkeepers. Communication styles are sure to vary between bookkeepers, so consider looking into how they interact with their current clients. A good bookkeeper should keep honest and open lines of communication at all times—this ensures that their clients are in the loop and on the same page. Become familiar with the prospective bookkeeper’s qualifications and credentials.

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Accountants will typically handle your small business’ higher-level financial tasks, like tax planning and business structuring. Bookkeepers track your numbers, while accountants often interpret those numbers to analyze your business’ performance. As a small business owner, you should know the difference between a CPA and a bookkeeper.

That means a third-party bookkeeper will likely charge you more than an online one, but that’s because they likely offer more services and resources. By hiring a bookkeeper, you can hand off your finances to someone who already knows all the jargon and processes. 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. Investors and lenders will also often ask to see certain reports before doing business with you. A bookkeeper can give you peace of mind knowing your reports are correct and improve your chances of securing funding. Not everyone is blessed with the meticulous attention to detail and mathematical gifts it takes to be an efficient bookkeeper.