4 Reasons You Should Hire a Bookkeeper
Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing. However, you won’t need to spend as much time and effort because these firms have expert recruiters who will do the hard work for you. A bookkeeper might introduce you to different software or new ways of doing things. They might help you in the long run, but there’s no denying that it can take a while to get the hang of something. While there are plenty of great reasons to hire a bookkeeper, there are some drawbacks you might want to consider.
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. It’s important to use a range of tests – not only to assess your candidates’ aptitudes but to assess their cultural fit as well.
- Since nearly anyone can call themselves a bookkeeper, you’ll want to ask about their background.
- Now you have written your job description, your next challenge is to source the right bookkeeper candidates.
- You should also consider the value that a bookkeeper can add to your business, such as helping you save time, reduce stress, and make better financial decisions.
- Once our bookkeepers show them the ropes of their payroll and accounting software, they’re ready to take it over on their own.
This knowledge can inspire business leaders at any stage to make better and more informed decisions for future growth opportunities. With your small business, you’re faced with the decision to prepare your books by yourself or to outsource your bookkeeping for someone else to perform. While there isn’t a single best answer that applies to all businesses, there are factors you should consider to come to a decision you’re most comfortable with. A make-or-buy decision is a common problem that businesses large and small have to solve. Small businesses have an even more difficult time deciding if it’s best to make or buy something, as they have limited resources in both time and money.
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They can share that information using cloud-based accounting software. That means they can access your financials FREE 21+ Petty Cash Log Template in PDF MS Word XLS securely online, from anywhere. It lets them share reports about the financial status of your business.
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. Bookkeepers record daily financial transactions, debits, and credits; produce invoices, focus on day-to-day affairs. While accountants verify and analyze data recorded by the bookkeeper. There are several reasons why hiring a bookkeeper is a smart move for small business owners. First and foremost, it frees you up to focus on what you alone can do.
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.
Plus, the cost of hiring and working with a bookkeeper is also tax-deductible. For instance, a bookkeeper who works with other yoga studios can tell you whether the cost of additional training for one of your instructors can be deducted on your taxes. In this article, we cover all you need to know about hiring a bookkeeper, including what skills and abilities to look for, and how to test for them as part of the recruitment process. These questions should give some insight into how the candidate thinks and processes challenging scenarios in a professional environment. Bookkeepers in the United States are not legally required to obtain a license, but they can participate in several voluntary certification programs. Meanwhile, here are answers to some questions you might have about hiring a bookkeeper for your company.
Sourcing bookkeepers for project/temporary work
Every decision you make for your business will have a financial angle, and inaccurate financial records can lead to decisions that can potentially bankrupt your business. If you’d prefer to take some of the stress out of the hiring process, consider partnering with Bench. They ensure their team is fully trained and has the skills necessary to be your in-house virtual bookkeeper. Companies often throw around titles without thinking about how the job title describes the duties for that role. A bookkeeper is different from an accountant, a comptroller, a financial analyst, and other finance-related positions.
You can access your account through a mobile app for on-the-go tracking. If you’re racing to get your books prepared for tax season and you feel generally behind on your taxes, you may want to hire a bookkeeper to handle that for you. If you don’t have your books clean and your financial records organized, you’ll have a harder time filing your taxes.
Qualifying questions do what their name suggests – they determine whether your bookkeeper candidates qualify for your vacancy. Haroon is a turnaround expert with 20+ years of experience in the US CPG industry, half of which is at the C-suite level. He has a proven track record of delivering phenomenal payroll savings to notable US CPG brands. His areas of specialization include trade spend management, business process reengineering, and cost optimization, among others.
Related outsourcing resources
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. This is the ideal platform to use if you are trying to source full-time bookkeepers. With the American Accounting Association, you’ll attract a vast and diverse candidate pool. Posting a job starts at $299, and you’ll find that there is no word limit when it comes to posting. Now you have written your job description, your next challenge is to source the right bookkeeper candidates.
This resource will help you develop an onboarding checklist for new hires. Access all Xero features for 30 days, then decide which plan best suits your business. So both of them can both give you advice about where your business is right now – and where it’s heading.
considerations for hiring the right bookkeeper
To find a bookkeeper, you need to go where candidates are—job boards. I recommend posting to at least three different job boards so you get a good mix of applicants. To specifically seek freelance bookkeepers, check out our top picks for online bookkeeping services.
This lets them avoid the kinds of service gaps that may crop up with an individual freelancer. Your bookkeeping candidates should know a lot about accounting software or learn more about the software you use in your organization. Listen for evidence that your candidate has the right skills, how they have used the software in the past, and, if not, how they can adapt to new accounting software. Qualifying questions are also an option with TestGorilla, which will round out the skills tests you ask your candidates to complete.
Become familiar with the prospective bookkeeper’s qualifications and credentials. Since nearly anyone can call themselves a bookkeeper, you’ll want to ask about their background. Many bookkeepers will have a degree in accounting, be a CPA, or even be registered with the Tax Practitioners Board. You can also ask friends or colleagues who have utilized bookkeepers for their businesses. Recruiters are also an option, but word of mouth is often cited as the most trustworthy way of figuring out if a professional is qualified and will perform to your standards.
Having a bookkeeper to handle those tasks for you gives you back hours of your week — and in a year, those hours can add up quickly. You can focus on doing the tasks you love without having to slug through the tasks you dread. Look for someone who is willing to invest in the latest technology and tools to provide you with the best service. No matter your business’s industry, you need a bookkeeper to maintain and optimize business finances.