So you’re a small business owner who needs a bookkeeper. Congrats! It’s really exciting to hit that stage of growth.
Keeping up with your books is something that a lot of small business owners struggle to manage – or simply don’t want to do! That’s why finding the right bookkeeper is essential to maintaining smooth operations in your business. You want someone who’s knowledgeable, experienced, and definitely not going to take shortcuts.
Here are our best tips for finding a bookkeeper that’s a perfect match for your business. But first, what do bookkeepers even do?
What Does A Bookkeeper Do?
A bookkeeper is the financial manager of your business. They’ll keep track of every penny that goes in or out, recording all financial transactions that occur within your business. This includes purchases, sales, expenses, receipts, and payments.
Bookkeepers ensure that the balances in various accounts, such as bank accounts and credit card accounts, match the corresponding records in the company’s financial statements. This process helps identify discrepancies and errors. They help keep a pulse on the financial health of your business, too. This is usually accomplished by generating financial statements such as balance sheets, income statements, and cash flow statements.
If you’re selling a physical product, a bookkeeper can track amounts owed to suppliers and amounts owed by customers. They ensure that invoices are processed accurately and that payments are made and received on time. They also maintain the general ledger, which is a comprehensive record of all financial transactions organized by account. This ledger serves as the foundation for your company’s financial statements.
In some cases, bookkeepers may handle payroll tasks, including calculating wages, processing payroll taxes, and issuing paychecks or direct deposits to employees.
If you agree upon forecasting (which is a bookkeeper “predicting” your financial future), they can provide support in preparing budgets and financial forecasts. They do this by analyzing past financial data to help predict future financial trends so you can make informed decisions. There are so many layers and levels to what a bookkeeper can do for you, so it’s important to figure out what you need before hiring one!
Tips For Finding Your Perfect Bookkeeper Match
That brings us to the importance of defining your needs. With so many tasks a bookkeeper can handle, you’ll need to decide what specific tasks you want them to take over. This could include tasks such as recording transactions, reconciling accounts, preparing financial statements, managing payroll, or handling tax filings. It’s all up to the level of financial complexity in your unique business.
Now, this isn’t critical, but you might decide to find someone who understands your industry. Being a health and wellness coach is a different set of financial rules than selling imported wine from Spain! If you feel more comfortable knowing your bookkeeper has worked with people just like you, look for one who has experience in your niche.
Once you have your business needs outlined, it’s time to start searching! You can use platforms like LinkedIn to vet out qualified candidates. Most people list their certifications and education publicly, so you can fact-check what qualifications each person has.
There are also specialized accounting websites to search for qualified bookkeepers. Some of the best ones are:
(Or you could keep things simple and go with KC Virtual Bookkeeping. We had to throw that out there!)
While you’re searching, make sure to look for bookkeepers who are certified or have relevant qualifications such as a degree in accounting, certification as a Certified Public Accountant (CPA), or certification from organizations like the American Institute of Professional Bookkeepers (AIPB). KC Virtual Bookkeeping is QuickBooks ProAdvisor certified, and also recently became Profit-First Certified. There are less than 400 Profit-Certified Businesses in the country, and they take an entirely different approach to managing your business finances to make your money work for you. Whatever certifications you’re looking for, make sure your bookkeeper’s qualifications align with what you need for your business.
Lastly, choose a bookkeeper who is compatible with your business culture and values. A good fit will lead to a smoother working relationship and better results. Another thing to remember? Make sure you always discuss their standards for payment! Some bookkeepers charge hourly, while others have a flat rate for certain services. You’ll want to know what your bookkeeper charges so you understand what services you’re paying for.
Hiring a bookkeeper is a big step, and it’s essential to find the right fit for your small business. The perfect match is out there – now, you just have to look for them!
