Hiring a Bookkeeper? Read This First.
Making sure that your business is running smoothly financially is important. This includes making sure that you have a bookkeeper to help you with the numbers.
A bookkeeper is a critical part of almost any business, but selecting the right one is not easy. This blog will look at some of the key factors you should consider when thinking about hiring a bookkeeper as well as some questions you should ask.
What are the pros and cons of hiring a bookkeeper?
Advantages
Professional Assistance
When you outsource portions of your firm, you gain access to a pool of knowledge and skill that you lack. Hiring a bookkeeper will provide you with expert help from a knowledgeable individual.
They will have worked with firms similar to yours, providing help and guidance to ensure the appropriate course of action is taken. In addition, they can translate any complex jargon into plain English so that you are always informed.
Remember, no credentials are required to perform bookkeeping. This indicates that anyone can do it, thus there is nothing preventing you from performing your own bookkeeping duties.
Focus on Other Aspects of Your Enterprise
The last thing you want to worry about when project deadlines are coming and the phone won’t stop ringing is balancing your company’s books. It is an unwelcome diversion that diverts your attention away from activities that will truly generate income.
Employing a bookkeeper alleviates you of one worry. You may focus on business-growth-driving duties and projects, secure in the knowledge that a professional is handling your bookkeeping.
However, it is important to remember that bookkeepers have multiple clients, so they may not always be working on your business, or they may prioritize another client over you.
A New Perspective on Your Business
When it’s your own firm, it might be challenging to make difficult decisions or recognize when something is wrong. When we are the owner, we view firm finances with rose-colored glasses and are willing to overlook possible red signs.
Working with a bookkeeper will provide your firm with a fresh viewpoint. They are less prone to be emotional and more likely to make decisions on cold, hard numbers. This can, however, be jarring and result in awkward conversations between you and your new bookkeeper.
Disadvantages of Hiring a Bookkeeper
Are You Receiving Good Value?
Bookkeepers are an additional expense to consider when evaluating the financial health of the business. Especially when their invoices might quickly accumulate.
When you initially engage a bookkeeper, there may be unanticipated expenses. Or, they may bind you to a contract so that you have no recourse even if you no longer require their assistance.
As previously stated, you can perform your own bookkeeping; no additional credentials or certifications are required. Additionally, you can download simple and inexpensive bookkeeping applications or desktop software for a fraction of the cost.
You Have No Control
You will always have the last word on major business decisions, but if you hire a bookkeeper, you will cede some power. You are investing your faith in a stranger with whom you may have only spoken on the phone.
It can be unsettling to lack complete visibility and control over your books. Someone else is analyzing and managing the finances of your business.
In addition, you are subject to the bookkeeper’s schedule.
You may require crucial information, but they are out of the office or with another client. Some bookkeepers do not keep daily records, which you may desire and be accustomed to.
If you prefer to have immediate access to everything and total control, employing a bookkeeper may not be for you.
Questions to help you decide whether to hire a bookkeeper or not.
1. Are they certified and registered?
Some bookkeepers will have a certificate, a degree in accounting, or may even be Chartered Accountants or CPAs.
If your bookkeeper will be submitting your BAS in Australia, they must be a Registered BAS agent at the very least. Registered with the Tax Practitioners Board are BAS agents.
Qualification and registration criteria vary from nation to nation. Ask your bookkeeper about their credentials and whether or not they are registered to file sales tax in your nation.
Some bookkeepers are experts and others are generalists. You must assess the unique needs of your organization before hiring to guarantee that the individual you choose can handle the burden. If there are problematic or complicated areas of your bookkeeping, you will need to hire a more specialized bookkeeper.
2. How can you determine whether a bookkeeper accepts responsibility?
A competent bookkeeper maintains your books organized and makes it simple to review and search the entries. Perform your due homework and request references from accountants who have dealt with your prospective bookkeepers.
3. Are you working directly with the bookkeeper or with a full-service accounting firm?
Hiring an accounting firm as opposed to a virtual bookkeeper reduces risk. However, if you have a team of bookkeepers, it is possible that the person with whom you discuss the bookkeeping work will be different from the individual who performs your processing.
Inquire about the company’s quality control and internal review procedures.
4. How do they safeguard their clients’ private information?
You will be discussing confidential business and financial information with your bookkeeper, so you must be able to rely on them.
This begins with inquiring about how they safeguard customer funds, their internal controls, and segregation of duties.
5. How much should you pay bookkeepers?
Take the time to investigate bookkeeper wage trends prior to initiating a recruitment hunt. Our Salary Calculator includes actual salaries by area and will assist you in determining how much bookkeepers in your city or state can expect to earn.
We hope you enjoyed our article on how to find the right bookkeeper to manage your finances. Bookkeeping is a very important job, and it can be difficult to find the right person for the job. If you need any help finding the right bookkeeper, please visit our website.