Hiring a bookkeeper is a necessary step in growing a business and competing favourably. It’s a decision every business owner will eventually have to make. However, hiring can be scary; a bad hire can set your business back years and thousands of dollars. Bad bookkeepers make it impossible to interpret financial records and may even try to evade their mistakes, leaving you to handle all the consequences. With that in mind, here are 4 things you should consider before you take the plunge:
1. What exactly are your needs?
To hire the best bookkeeper, you have to understand what bookkeeping services your business needs. Discovering what you need requires knowing both the financial goals for the business and your bookkeeping needs, including industry-related requirements and taxes.
For instance, if you want to grow your business, you’ll need the assistance of a highly competent bookkeeper to file your taxes and manage your financial aspect. The person you hire should be knowledgeable of your business and its industry, and able to keep close track of your expenses, revenue and profit margin.
2. How much does the bookkeeper charge?
While you need to keep your costs down when hiring a bookkeeper Adelaide, keep in mind that cheaper isn’t necessarily better. It’s essential to find the right person for the job. Remember this is a significant investment in the future success of your business.
The ideal way to keep costs low without affecting the level of service is by finding a bookkeeper whose charges fit your budget and needs. Compare prices of each candidate. How much do they charge per hour? Do they charge per enterprise or per line item? Also, check if they charge additional fees for reporting.
Take your budget into consideration and work out a contract (in writing) that meets your requirements without breaking the bank. Try to get the perfect balance between flexibility and commitment that works for you.
3. What bookkeeping (accounting) software do you use?
It helps to use online accounting software. Only then can a bookkeeper share data securely and remotely with you anytime. Find out if the bookkeeper knows how to use the accounting software you have selected for your business. Failure to do that and you’ll have to pay for time wasted figuring out how to use the system.
The software you choose to use should be able to automate the accounts receivable and accounts payable processes. This will greatly reduce the cost of bookkeeping. If the bookkeeper recommends software for you, ensure it’s the best one for your business needs.
4. What bookkeeping skills do they possess?
First, take a close look at your expertise. Do you understand financial reporting, bookkeeping, or accounting? Be completely honest with yourself. Hiring a bookkeeper will save you time and allow you to concentrate on business growth. Therefore it’s important to have a bookkeeper with the skills and knowledge to perform all essential bookkeeping tasks, such as reconciling bank statements, posting & updating journal entries, and processing accounts receivable, accounts payable and payroll.
Remember this is someone you’ll rely on to interpret and make decisions concerning your finances. So the person you hire will need to be transparent and accountable and have good communication skills to produce effortless reports and strong problem-solving skills to settle any discrepancies.