How to Hire the Right Bookkeeper for Your Small Business Bench Accounting

hire a bookkeeper

Bookkeepers are very reliable when it comes to making sure that your business is making more money than it’s losing. They provide an extra pair of eyes when it comes to taking care of your funds and ensuring that you don’t run out of day-to-day money. There’s no space for mistakes in this line of work, so bookkeepers are also tasked to double-check records to ensure that the records match. It’s ideal to find a bookkeeper who can handle taxes a well as payroll and other financial issues. Therefore, you’ll be missing that balance every person needs in order to stay healthy and not burn out on what you are doing. If your business is fresh and you only have a handful of transactions each month, you’re likely better off saving the money and doing your bookkeeping on your own.

  • Find out if they have the problem-solving skills required to identify a problem and then analyze numerical data to resolve any potential problems with a problem-solving test.
  • If these critical processes are not handled with care, a company will soon find itself in financial hot water.
  • Candidates should refer to accounting software and how it would help them fix the bank reconciliation discrepancy.
  • It’s an upfront expense, sure, but that expense saves you time and money over the long-term.
  • Suppose you went all year without preparing monthly financial statements and then handed off your business records to an accountant to file your taxes.

Meanwhile, here are answers to some questions you might have about hiring a bookkeeper for your company. If you have a paperless office with digitized documents, you may find you’re comfortable hiring and working with a freelancer online. We’ll show you a few things to keep in mind so you can identify which bookkeepers are the best fit for your small business.

Bookkeepers vs accountants

A bookkeeper for a small business is responsible for many day-to-day financial operations. That includes recording and categorizing bank transactions, reconciling those transactions and preparing financial statements like balance sheets and profit and loss statements. They can also set you up with and teach you to use payroll software and accounting software. Kashoo has basic accounting and bookkeeping services suitable for very small businesses.

Fill out a form to give details on the bookkeeping project you need completed, provide some details on your business, and explore job profiles of potential freelancers to choose from. The financial reconciliation you are responsible for will help our organization monitor our financial transactions with accurate reports and essential data entry. If you make the wrong hire, many things can negatively affect your business. Not only can you expect the financial reports to be inaccurate, but by hiring the wrong bookkeeper, some of your business transactions might be incorrectly recorded.

Related business insights and resources

Because you are so busy, you may not realize that there are outstanding payments from your client base. Any late payments here could infringe upon the cash flow you need to keep your startup humming along. He or she will give you that “big picture” through the numbers being crunched.

The duties assigned to a bookkeeper will vary from business to business. If you’re a small company, they may essentially cover all financial requirements, using an external accounting firm where necessary – such as for preparing and filing your tax return. Bookkeepers are intimately familiar with these sorts of transactions and can take over recording and managing your business’s financials on your behalf. In addition, a skilled bookkeeper can train you on the best practices to record, manage, and interpret your financials, and how to input that data into a versatile bookkeeping app. Take time to research compensation trends for bookkeepers before you launch a job candidate search. Our Salary Calculator provides real-world salaries by location and can help you determine what level of compensation bookkeepers in your city or state might expect to earn.

Which soft skills tests could I use to hire a bookkeeper?

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. Assessing a candidate’s soft skills is no easy task, as many of those skills won’t present themselves until that candidate enters the workplace. Bookkeeping certifications are totally optional, unlike accounting, where a CPA designation is mandatory.

How do you know if you need a bookkeeper?

Here are some signs that it might be time for your business to hire a bookkeeper: You're consistently behind on invoicing and tracking payments. You don't have a good handle on your business's financial situation. You're spending more time on bookkeeping than you'd like, and it's impacting other areas of your business.

It’s essential to check in with them so that their treatment of your transactions is appropriate and relevant to exactly what happened in real life. From the time and money savings, to the focus on expertise and greater cash flow, a bookkeeper makes good business sense for your startup. They offer a cost-effective solution for businesses that do not have the internal resources to maintain their own financial records. A freelance bookkeeper is an individual who provides bookkeeping services to businesses on a contractual basis.

Ready to get started with a bookkeeper?

They should be able to record all transactions and reconcile the accounts. The best way to find out if they can competently carry out this role is with an accounts payable test, which will assess each of these aptitudes. 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 post is to be used for informational purposes only and does not constitute legal, business, or tax advice.
  • If you’re looking to expand, hiring employees, and doing payroll, a CPA can help with big decisions.
  • 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.
  • Some sectors may require different records or requirements than others, so you should look for a bookkeeper with a great amount of knowledge on your industry.
  • You can focus on doing the tasks you love without having to slug through the tasks you dread.

There are many reasons why you should consider hiring a bookkeeper. For one, you’ll gain easy access to your company’s financial information, which may allow you to make better decisions with your budget. Your taxes will also be in order when it comes time to file, which reduces the possibility of going through a time-consuming IRS audit. The reports a bookkeeper creates can give you information on your company’s expenses, revenues, and profitability.

Preparing financial statements

If you’re hiring an in-house bookkeeper, your costs include their salary and benefits. You can save money by going with an online bookkeeper or a third-party bookkeeper. Online bookkeepers usually charge a monthly rate, while third-party bookkeepers usually charge an hourly rate.

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