5 Things to Look for When Hiring a Bookkeeper

If you are a business owner, it doesn't matter if it’s a startup or a giant, it only makes sense that you must stay on top of all your business’ financial transactions and keep an organized, readily discernible record. For your business to take off, there needs to be legitimate accounting of your finances. Admittedly, not all business owners are equipped to do their own bookkeeping.

Hiring a bookkeeper is one of the best decisions you will ever make to benefit your business!

Businesses should have a basic understanding of their financial transactions, it’s only common sense. But really, it takes months to years of experience to understand the ins and outs of your accounts. Free up your time and energy and focus on developing other aspects of your business by hiring a good bookkeeper to oversee your budget and expenses, to provide you with business reports, and to make sense of all your finances.

Here are 5 things to look for when hiring a bookkeeper:

1. Qualifications

Although bookkeeping is no small task, you’d be surprised to know that technically only a high school diploma is required, plus additional training in accounting or finance. Depending on your needs, you may hire bookkeepers for an entry-level position. Most bookkeepers though have a bachelor’s degree in accounting, business administration, or other related fields. The degree guarantees that they are equipped with extensive knowledge to handle the accounts.

Completing supplemental courses from certified organizations is also a big plus!

Getting certified means that the bookkeeper is equipped with the knowledge and skills to deal with more complex work. To be certified, a minimum of 2 years experience and passing an examination are required. Oftentimes, they also need continuous education to retain their certifications. So, if an applicant with these qualifications walks through your door, hire them ASAP!

2. Detail-oriented and Organized

Bookkeeping is all about numbers! Before hiring one, you must find out from their previous employer if they have attention to detail. In accounting, one can never be too thorough. Look for a bookkeeper who is finicky with every financial item. Trust us, when it comes to numbers, a perfectionist is the most ideal candidate.

A good bookkeeper is someone who is systematic. As businesses grow, it gets more difficult to track every line item of your finances. Hiring a bookkeeper who is organized essentially allows you to sleep peacefully at night. You can trust that everything has been accounted for and that the records are virtually error-free.

3. They must understand your business

Bookkeepers must keep up with the intricacies of your business. They should have a deep understanding of your day-to-day business operations. It is vital that they know who your clients are, where the bulk of your budget goes and why, and daily expenditures. Once you’ve hired a bookkeeper who is as invested as you about the business, allow them a brief learning curve. Only retain someone who is vigilant of any recurring issue and is prepared to deal with these matters tastefully.

4. Communication is key

A good bookkeeper is someone who can effectively communicate. Depending on how complex your business is, chances are you will be in constant communication with your bookkeeper. Yes, the reports must be written coherently and can easily be understood by you. However, you must also choose someone who can communicate well and make you understand the state of your finances clearly and concisely.

5. Turnaround Time

Be upfront and ask them directly how long their response and delivery times are. Before hiring anyone, you must also know the timelines of your business so that you can set expectations on any deliverables. Be reasonable with your demands, we don’t want the quality of the reports to be compromised. The right bookkeeper already knows from experience what tasks need to be done within the week and which reports should be accomplished monthly.

If you are communicating via phone or email, you also have to know their response time. This is extremely important, especially now that work has shifted to the virtual space. A good bookkeeper would return your calls and respond to emails to keep you updated.