As a small business owner, your sweat and tears are embedded in the fabric of your company. That’s why it’s so important for you to know that your finances are in good shape.
A good bookkeeper keeps your finances in good order and will help you estimate cash flow and understand your business’s financial health. All of which help you make wise decisions that will result in growth for your firm.
Here is a guide that can teach you what you need to know about hiring a bookkeeper.
Know that the Term Bookkeeper Means a Lot of Things
When hiring a bookkeeper, keep in mind that the qualifications candidates possess can vary widely. Some bookkeepers are specialists in one area, while others are generalists.
Some bookkeepers hold diplomas, others have accounting degrees to their name, and some may be Chartered Accountants or CPA.
If you hire an accountant for your bookkeeping needs, you will be overpaying. That’s why determining your needs is the crucial next step in hiring bookkeepers.
Determine Your Needs
Determining your business needs is one of the first steps in finding a good bookkeeper. At the very minimum, you want a bookkeeper that is registered to file sales tax in your country. However, if your company will have some complex bookkeeping tasks, you might need a specialized bookkeeper.
You will also need to figure out which type of bookkeeping you need, single-entry or double-entry.
Single-entry bookkeeping is typical for firms that have simple transactions, or don’t have a large number of transactions. This works if your small business doesn’t have accounts payable and accounts receivable.
Large businesses with more complex transactions use the double-entry system.
Once you know your needs, you can hire a bookkeeper that will be a good fit for your firm.
Rely on Professional Bookkeeping Services
The freelance economy is huge. In fact, Americans spend over a billion hours per week on freelancing.
However, that doesn’t mean that every freelance bookkeeper you find online will be competent. Also, if you hire a freelancer who doesn’t have liability protection, you’ll likely be on the hook if something goes wrong.
Your best bet is to choose a bookkeeping service company that offers services that range from basic bookkeeping to accounting depending on your needs.
By choosing a service provider, you don’t have to hunt for the right fit for your company. The company will match you with the professional who can meet your needs.
Also, by teaming up with a bookkeeping service, you will have a team of experts to help you identify potential risks and opportunities. Small business owners can always benefit from expert advice.
Now You Know About Hiring a Bookkeeper
In summary, the most important step in hiring a bookkeeper is having a good understanding of your needs.
Then, a bookkeeping service provider can match you with a bookkeeper that is best suited for your firm. The right bookkeeper will be organized, meticulous, and also able to align his or her work with your goals and objectives.
So, there you have it. Now you know the steps you need to take in order to find a bookkeeper for your small business.
At Books by Schmidt, we are your business and bookkeeping, solution provider. Contact us today.