Bookkept Small Business Guide

How to choose the right bookkeeper?

A good bookkeeper is essential for every business’s long-term success; consequently, finding the appropriate bookkeeper is equally important for your company’s growth.

When looking for a new bookkeeper, there are many factors to consider, and there is no magic formula for selecting a bookkeeper (or any other employee). However, if you want your bookkeeper to be a valuable asset to your company, there are a few basic qualities that they should possess.

You must deal with numbers as soon as you start a business. Every firm, no matter how tiny, is required to maintain track of all transactions.

This includes sales, expenses, payroll payments, and any other financial transactions in and out of your company.

Although you can do it yourself, most business owners aren’t schooled in bookkeeping. As a result, firms frequently outsource this routine task.

We’ll discuss why employing a bookkeeper is a good idea or perhaps a necessary aspect of running a business in this tutorial. Then we’ll discuss how to get the best bookkeeper for your company.

If you require help with your bookkeeping, you can give us a call on (03) 8568 3606 or email us on [email protected].

A professional bookkeeper can be invaluable when it comes to balancing your daily spending, revenues, and invoice management, whether you’re just starting your firm or fine-tuning your financial tactics.

By delegating these tasks to a professional, you may reduce your chance of error and free up time for other activities.

But where do you look for a bookkeeper, and how do you know which one to hire? Continue reading to see how successful companies choose the best bookkeeping services.

Things to Keep in Mind

Trust & Security

Bookkeepers have access to a company’s most sensitive personal and confidential information. Because bookkeepers are in charge of a company’s crucial financial records, they’re frequently a key figure in ensuring that invoicing, payroll, and taxes are all handled properly.

You need to be able to put your complete trust in your bookkeeper. Ask a bookkeeper (or a bookkeeping service) all the questions you can think of about their procedures and processes for protecting your financial information before hiring them. You should look for a new bookkeeper if you don’t trust someone to be truthful and transparent 100 per cent of the time.

Certification

Always hire a bookkeeper who is totally licensed and certified. Some firms are tempted to engage unlicensed individuals to keep their records in order to save money. Hiring unlicensed bookkeepers can be a costly mistake because, while they may save you money in the short term, they are more likely to make mistakes and cost you money in the long run.

Excellent Communicator

A bookkeeper is someone you hire to keep track of your finances; as a result, you’ll need to communicate with them on a frequent basis. Some bookkeepers may be fantastic at keeping track of the statistics, but if they neglect to interact with you, they can be detrimental to your company’s general health.

Being a good listener is an important part of being a good communicator, so your bookkeeper should be attentive and interested when you’re talking about the minutiae of your business. Finally, you and your bookkeeper should have a positive working connection that permits information to flow freely and accurately between you.

Organised

A bookkeeper is responsible for keeping financial records, and they must have a file system that represents the importance of their work. Most financial queries you may have for your bookkeeper should receive a fast response. If a bookkeeper is well organized, fundamental questions about the company’s finances and expenditures should never be a problem.

A bookkeeper who appears disorganized or who files crucial corporate documents inconsistently should not be trusted with the financial records of an entire organization.

Make sure your company hires a bookkeeper who has a clear and concise procedure for keeping track of paperwork when hiring a new employee. Remember that paperwork stored away now may need to be reviewed in 5 or even ten years.

Shares Your Vision

Most people view a bookkeeper as someone who is engrossed in the details, too preoccupied to glance up from their different documents and calculators, and far too preoccupied to worry about the big picture of operating a firm.

Yes, a bookkeeper should have exceptional attention to detail that allows them to keep track of numerous minor figures, but this stereotype should be far from the fact. A bookkeeper, on the other hand, should be familiar with your business and share your larger vision for the company you’re trying to establish.

Because bookkeepers are such an important element of the company’s day-to-day finances, they’re also team member who needs to be aware of the company’s larger aims.

Hiring Internally

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While hiring a staff to handle bookkeeping may appear to be a good approach to preserve control of your funds and the people in charge of them, this method frequently fails to deliver. Managing bookkeeping internally can be a formula for disaster for organizations that lack expertise in bookkeeping techniques, accounting software, or financial analysis.

Furthermore, internal bookkeeping personnel might be subjected to a variety of information security, fraud, or even basic errors or inaccuracies in financial entries in various instances.

Having an internal bookkeeper necessitates a great deal of monitoring, from repurposing office administrators to mismanaging staff.

Hiring Freelancer or Part-Time Bookkeepers for Bookkeeping Tasks

A freelancer has what kind of education and experience? The answer differs significantly from one employee to the next. You want to make sure your bookkeeper has the appropriate expertise and an excellent track record, as well as professional education in the sector.

Certification, licensure, and insurance are all things that should be looked into. If a freelancer makes a mistake while working for your company and you don’t have liability insurance, you’ll be on the hook. Furthermore, if your freelancer works from a remote location, such as a home office, you’ll need to discover a strategy to provide appropriate control to prevent account mismanagement and catastrophic errors.

There are competent freelancers out there, but you’ll have to look hard to locate the appropriate one for your company. Your bookkeeper should be able to balance your records and offer advice on current and potential issues. They’ll need to use resources that are compatible with the software and payment systems you already have in place to be effective.

Hiring CPAs

Hiring a CPA to undertake the work of a bookkeeper is frequently a waste of money. Furthermore, accountants rarely like their jobs. Consider employing a CPA to help you with financial concerns that require additional knowledge, such as filing taxes or managing investment money.

CPAs work with bookkeeping services on a regular basis and may be able to identify specialists that can serve a daily accounting position for your company at a significantly cheaper cost.

Hiring Professional Bookkeeping Services

Finally, there are bookkeeping service organizations that manage numerous enterprises’ daily accounts. They frequently hire CPAs for managerial positions in order to provide proper monitoring and advice to a bookkeeper who has difficulty.

Because they work with a variety of clients, these services often have access to a wider range of tools, and because they employ so many people, they have a better chance of having the experience needed by your business. Businesses can also profit from leveraging ties with industry experts and accounting technology providers.

Hire for confidence

You want someone who is confident when hiring a bookkeeper. A skilled communicator is essential in this position. You’ll get more than a bookkeeper with Maximum Business Solutions; you’ll get a useful asset to your company that contributes.

Communication skills are important in any employment, but they are especially important for bookkeepers, who play a significant role in your company’s finances.

Hire for understanding

You should expect your bookkeeper to obtain a thorough understanding of your company, its present financial status, and your short- and long-term objectives.

A bookkeeper who shows little grasp of your business or how you operate shows a lack of dedication to you and your employees. Red flag!

Hire for skill

You’re probably looking for a bookkeeper as a business owner since you don’t have the time or skills to manage the task anymore. Perhaps you took the time to manage yourself when your company was small. But now that your company and crew are expanding, you just don’t have the time. Your options?

  • When you can, cram it in, leaving room for errors, inaccuracies, and omissions.
  • Choose a trained bookkeeper who is committed to processing your records correctly and accurately.

We shouldn’t have to tell you which option is the best! Using the services of a professional bookkeeper can make a huge difference.

Hire for growth

No business owner wants to be stuck in a rut, and excellent companies constantly strive to improve and expand.

The financial component of success requires a dependable, dedicated bookkeeper. Find a bookkeeper who is enthusiastic about your company, eager to succeed, adheres to deadlines, and provides ongoing business insight. If you’ve discovered that, you’ve hit pay dirt.

Ask questions

A good bookkeeper will ask pertinent questions. He or she will also discuss ideas with the business owner about financial-planning techniques, ways to enhance revenue, cash flow, budgeting, and a variety of other cost-cutting strategies that they might devise to improve business performance and growth. They can help grow the business while keeping costs down if they have a good understanding of the business and financial situation.

How can you tell if your bookkeeper is trustworthy? Above all, they should be constantly upskilling, training, and certified.

The Tax Practitioners Board requires bookkeepers who are registered as BAS Agents to have skills, credentials, and learnings in all areas of bookkeeping, including GST and BAS regulations. They must also have at least two years of industry experience and agree to follow a strict code of behavior. They must re-certify every three years to remain current.

Three reasons why you need a bookkeeper

If you’re just starting in business, you may believe you don’t require bookkeeping services. Perhaps you believe that letting your accountant sort out the figures once a quarter or once a year is sufficient. However, there are compelling reasons to hire a bookkeeper. Here are three of them:

They save you time

It’s not a good idea to do your own bookkeeping unless you’re an expert in the field. Only part of the job is processing receipts, costs, and payments. They understand how to allocate expenses to certain clients.

They’ll take all of the data, enter it into your accounting program, and interpret it. A smart bookkeeper understands how to treat transactions in order to generate relevant business reports. It’s a skilled task, and your bookkeeper will complete it much faster than you.

They understand your business

Bookkeepers have a strong understanding of your company’s finances because they deal with day-to-day accounts. They can help you figure out where your firm should go by sharing this knowledge. They can alert you to any difficulties in time for you to take action. A professional bookkeeper keeps track of your finances and keeps you out of trouble.

They help manage your cash flow

Accountants are useful in a variety of situations, including strategic counsel, annual reports, and tax concerns. They don’t see your accounts every day, though. A skilled bookkeeper will monitor your accounts on a regular basis. This will aid in the management of your cash flow, which is critical for business success.

Understand what you need

Hiring a bookkeeper is similar to hiring anyone else. First and foremost, you must comprehend your own requirements. Only then can you find folks who are right for the job.Here are some questions to think about:

What type of business do you run?

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Manufacturing organizations, for example, have distinct bookkeeping requirements than service or retail businesses.

On a daily, weekly, or monthly basis, how many transactions do you make?

This will assist you figure out how much bookkeeping time you’ll need.

Which accounting software do you use?

If you use online accounting software, it helps. Your bookkeeper can then safely exchange data with you at any moment.

Do you require credit control, payroll services or debt collection services to help you get paid faster?

Some bookkeeping services charge a fee for hunting down money owed to you by customers.

What are your key dates?

Payroll days, tax return deadlines, and scheduled meetings with your accountant are all important dates to remember. Before each of these dates, you’ll want your accounts to be accurate and current.

Business performance reports are also a crucial date. Inquire with the bookkeeper about how often they examine reports to see how the business is doing. A timely and accurate Profit and Loss report is one example.

Choose the right person

You should speak with as many people or businesses as possible. If required, interview them twice, and check their references and qualifications. Personality and cultural compatibility are also important considerations.

Even if they aren’t working full-time, your selected bookkeeper will communicate with you and your staff frequently. It pays to recruit someone who fits in well with your team. Hire someone who is nice, helpful, and, most importantly, interested.

Write a Better Ending

In conclusion, you should take some time to consider who you select as your bookkeeper, and you should avoid hiring anyone who lacks the skills listed above. Because bookkeepers have access to all of your most vital and sensitive financial documents, it’s critical that you choose someone who is reliable, courteous, and trustworthy. While many businesses are tempted to engage non-certified bookkeepers to save money in the short term, hiring a fully-licensed bookkeeper will almost certainly save you money in the long run. Finally, keep in mind that a bookkeeper is an important element of your business team; they should be someone with whom you can interact easily and who shares the company’s overall vision and goals.

Bookkeepers bring order to an otherwise chaotic situation. They collect all of your company’s numbers, receipts, bills, and other accounting data. They filter everything into your accounting software, into the appropriate reports and accounts.

They convert all of this data into useful financial data. Everything will be in its appropriate place, properly filed and organized. This can be utilized to get an immediate picture of your company’s health.

As your firm expands, a professional bookkeeping partner will be there for you every step of the way. So it’s worthwhile to take your time and hire the proper person.

In addition to merely assuring the integrity of your financial data, using a bookkeeping firm to manage your accounting needs can help you detect potential hazards and possibilities. Their assistance and guidance can often benefit even the smallest business owner. Unfortunately, not all solutions are profitable once implemented. Take the time to locate and hire the best bookkeeping partners to protect your business.

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