How to hire a Perfect Bookkeeper: A Step-by-Step Guide
If you’re running a business, you’d already know the importance of keeping your finances in order. But let’s be honest here, tracking expenses, managing receipts, reconciling bank accounts, and keeping up with payroll doesn’t really sound fun, does it? Unless you’re a bookkeeper.
That’s exactly why hiring the right bookkeeper is one of the best business decisions considered in today’s corporate world.
Fortunately, we have worked with plenty of businesses and seen firsthand the impact on the right bookkeeping can have on a business. So, if you’re a business owner wondering how to hire a bookkeeper who’s the perfect fit for your needs, we are here to guide you.
Ready for a simple step-by-step guide to finding and hiring the perfect bookkeeper? Let’s get started.
Step 1: Understand Your Bookkeeping Needs
Before jumping into the hiring process, it’s essential to ask yourself why you need a bookkeeper in the first place. Are you falling behind on invoicing? Maybe you just want to prepare for the tax season? Or is it your need to understand and work on your cash flow management?
Having clarity regarding your specific business and bookkeeping needs helps you narrow down the type of support you’d require. Not all bookkeepers offer the same services, and not all businesses need the same kind of help. Therefore, knowing whether you want someone to send you consistent financial summaries or someone with an expertise in tax planning is the key to finding the right bookkeeper.
Step 2: Decide the Type of Hiring – In-house, Freelance, or a Bookkeeping Firm
Now that you know why you need a bookkeeper, it’s time to figure out what kind of bookkeeper will best suit your business needs.
- Freelancers are ideal for startups or businesses with minimal bookkeeping needs.
- In-house bookkeepers are great for businesses with lots of daily transactions. However, this model is often expensive for small setups due to monthly salaries and overhead costs.
- Bookkeeping firms or outsourced service providers offer a broader range of expertise, cost-effectiveness, flexibility, and full-time backup support in case of an urgency. These are also called on-demand bookkeepers.
If you’re hiring a bookkeeper for a small business, you cannot ignore flexibility and cost. Therefore, a lot of startups in their infancy stage prefer to hire on-demand bookkeepers.
Step 3: Look for the Right Skills and Tools
Not all bookkeepers are created equal. A good bookkeeper will have experience in your industry, will be detailed oriented, and understand modern-day tools like QuickBooks, Xero, or NetSuite.
Here are some of the must-have skills to look for:
- A very good understanding of basic accounting principles
- Proficiency in some latest bookkeeping software
- Familiarity with tax regulations of your state and the U.S.
- Experience working on financial reports
- Excellent communication skills and approachable personality
It’s even better if your potential candidate is also well-versed with cloud-based accounting tools and software. This will help them make their service more efficient for your business and add more ease to your financial management.
Step 4: Ask the Right Questions:
Wondering how to find a good bookkeeper who fits your business? This is your chance to dig deep and ask questions that will help in your search. Essentially, interviews are the most important stage of your hiring process.
Here are a few sample questions to ask your potential candidates:
- What kind of clients have you worked with?
- Are you comfortable using my current software?
- How do you typically communicate with your clients? What’s the frequency?
- What does your process look like each month?
- Can you help with budgeting and forecasting?
And don’t be hesitant to ask for references. A good bookkeeper will have happy clients willing to vouch for their work.
Step 5: Ensure Cultural Fit
Bookkeeping isn’t just about numbers; it’s also about trust. By hiring a bookkeeper, you’re essentially handling someone the key to your business’ financials.
Make sure you feel comfortable with their communication style and they’re reliable and responsive. You’d ideally want someone who treats your business like their own, is proactive in catching mistakes, suggesting improvements, and helping you stay compliant.
Step 6: Clarify Pricing and Scope
Before you sign a contract, be sure to know what services you are going to get from your bookkeeper and at what cost.
Here’s what the contract should detail, and you must understand:
- Services your bookkeeper/firm is going to provide you
- The pricing structure (hourly, fixed rate, monthly retainer, project-based)
- Option for scalability in case your needs change
This sort of transparency helps avoid any surprises later on and ensures that the partnership between you and your bookkeeper runs smoothly, without hiccups.
Step 7: Start with a Trial Period
Sometimes, things can look great on the paper. But practically, it can still go sideways. Therefore, we always recommend starting with a short trial period, such as one or two months. But how to hire a bookkeeper who is willing to offer a trial period? A good bookkeeper will not have a problem with this request, and they’ll happily accommodate you.
During this time, evaluate their responsiveness, accuracy, and attention to detail. And if everything goes smoothly, congratulations! You have found yourself a perfect bookkeeper.
Step 8: Keep the Relationship Collaborative
Once you have hired your bookkeeper, don’t go completely hands-off. Regular check-ins help you stay informed and make sure you’re getting the most value for hiring a bookkeeper.
And honestly, a great bookkeeper isn’t just a number cruncher. They are in fact your financial partner. They can help you understand your cash flow, prepare for growth, and stay compliant with tax laws. All of this is possible if you have a collaborative relationship with your bookkeeper.
Need Help Finding the Right Fit?
Finding a good bookkeeper doesn’t have to be difficult or overwhelming. By following this step-by-step guide on how to hire a bookkeeper and by prioritizing things, you can find a great fit in no time.
At Arthur Lawrence, we have spent years helping our clients build their teams and systems, including their financial backbone. This is why whenever our clients are seeking bookkeeping services, we tell them about Monily. Our subsidiary company offers on-demand bookkeeping, tax planning and filing, as well as virtual CFO services.