Top 5 Things To Look For When Hiring A Bookkeeper

Bookkeeping Categories

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1. Experience, References, & Insurance – The 3 Fundamentals

It’s important that when hiring a bookkeeper you’ll want to ask how long they have been a bookkeeper but you should also ask what types of businesses they have worked with. Each business is unique and you’ll want to hire a bookkeeper that has worked within your niche or industry. For example, a bookkeeper for a construction company will have different strengths than one that has primarily worked for a non-profit company. Choose a bookkeeper that knows your industry!

Insurance – this is one many people don’t think of! When hiring a bookkeeper make sure they have Errors & Omissions, business liability or cyber coverage insurance. As technology becomes more complex, so do the threats businesses face. Cyber coverage insures and protects your business assets from cyber risk. You may want to follow up by asking your potential bookkeeper what happens if security is breached for any reason.

2. Communication is the Key to KPIs!

You may be thinking that you’ll just send documents to your bookkeeper, things will get done, and you’ll barely hear from them. However, that shouldn’t be the case. Your bookkeeper needs to have an effective way of communicating with you so that you can understand and stay informed of your business finances. Your bookkeeper should be able to communicate with you and any members/departments of your staff so that all parties involved have a clear understanding and appreciation for the numbers.

Talking about how to pay yourself first should be TOP priority! You and your bookkeeper need to be on the same page to ensure the business is always making a profit, not just breaking even (or operating at a loss!). Understanding how your bookkeeper approaches finances, debt, future, expenses, and protecting your company from market downturns or emergencies will help you make the best decision. Does your bookkeeper have experience using multiple bank accounts to manage cash (such as different accounts for taxes, operating expenses, profits, etc)? Is your potential bookkeeper familiar with the Profit First accounting method?

3. The Dirty is in the Details

This one is HUGE! Numbers can be tricky and even the tiniest mistake can lead to huge consequences! If you have a large business, be sure to connect with a bookkeeper that has worked with large companies before – the larger the business, the messier the books can become without proper bookkeeping (this brings us back to experience!).

4. Trust & Transparency, That is the Policy!

Trust and transparency are a must have when allowing someone into the intimate details of your businesses finances. Consider asking some of the following questions:

1. Who are some of your previous clients?
2. How did you help your previous clients grow their business?
3. What are some issues you ran into with previous clients and how did you come up with solutions?
4. Can you send me a quote for your services? (We want to avoid hidden fees down the road.)
5. Do you have liability or cyber insurance?

5. Tech-Savvy in a Tech-Driven World

Technology is ever changing so having a tech-savvy bookkeeper is going to be a tremendous help for you and your business (especially if you’re not so tech-savvy yourself!). Your bookkeeper should be fully trained to use your software system, but they should also be able to adapt to other forms of software or tools that may be necessary to complete his/her job quickly and effectively. Your bookkeeper should be open minded and willing to adapt when new innovations are invented.