How to Hire a Good Bookkeeper for Your Business
Written by Bindi Gethen
Navigating the complexities of today’s business landscape requires more than just a sharp mind for innovation and a keen eye for market trends; it demands a solid grasp of your financial health and the ability to use that information to make informed decisions.
This is where the true value of a skilled bookkeeper comes into play, offering not just financial record-keeping but a partnership that can guide your business towards sustained growth and stability.
So how do you find a good bookkeeper? Start with a clear assessment of your business needs, including understanding the complexity of your transactions and any industry-specific requirements. Leverage professional networks like LinkedIn, business websites, and recommendations from your business circle to identify potential candidates.
It’s essential to evaluate each candidate’s experience, especially with businesses similar to yours, and to discuss their approach to bookkeeping, communication preferences, and proficiency with accounting software. This process is crucial, for the right bookkeeper is more than a service provider; they are a key player in your business’s success story.
How to find a good bookkeeper
1. Determine your needs
Start by assessing what you need in a bookkeeper. This means looking at the volume of transactions, the complexity of your finances, and any industry-specific requirements.
Do you need someone who can simply keep your ledgers up to date, or do you require more comprehensive financial management, including budgeting, financial reporting, and tax preparation?
Transactional
If you only need someone to manage daily transactions like invoicing and payroll, a freelancer or a basic virtual service might suffice.
Operational
For more in-depth services like managing accounts payable/receivable, month-end closing, or financial reporting, consider a more experienced freelancer, virtual service, or a firm.
Strategic
If you’re looking for strategic advice, such as budgeting, cash flow management, or financial forecasting, look for a bookkeeper or a firm with a strong track record in your industry or with the specific financial expertise you need.
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Is Bookkeeping Same as Accounting?
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2. Decide on the type of bookkeeper
Next, consider what arrangement works best for you. Your decision here will affect your choices and where you look for a good bookkeeper. The main options are:
Freelancer
Ideal for smaller businesses or personal finances, freelance bookkeepers offer flexibility and often lower costs. However, ensure they have the necessary qualifications and experience, particularly in your industry.
These services provide bookkeeping remotely, leveraging cloud-based technology. They’re a good fit if you’re comfortable with less face-to-face interaction and require a scalable solution as your needs grow.
Accounting firm
For those with more complex needs or who prefer a team handling their accounts, a bookkeeping firm can offer depth of experience and resources. This option might be more expensive but is often for more comprehensive services.
3. Use online resources
Once you know what you’re looking for, it’s time to start the search. There are several avenues to explore
Professional Networks
LinkedIn and other professional social networks can be great resources. Look for profiles with strong recommendations and relevant experience. Joining industry-specific groups can also lead you to qualified bookkeepers who specialise in your field.
Online Marketplaces and Directories
Websites like Upwork or the QuickBooks Find-a-ProAdvisor site are useful for finding freelance bookkeepers and services. These platforms often provide ratings and reviews from previous clients, which can help in making an informed decision.
Referrals
Don’t underestimate the power of a good referral. Ask your professional contacts, accountant or even other business owners if they can recommend a bookkeeper. A trusted recommendation can save you a lot of time and ensure you find someone proven to be reliable and skilled.
Industry Associations
Many bookkeepers are members of professional associations, which enforce certain standards and ethics among their members. Look for bookkeepers affiliated with reputable organisations in your country, such as the Australian Bookkeepers Association.
4. Meet with potential candidates
5. Evaluate pricing structures
Bookkeepers and accounters can vary significantly in how they charge for their services — some may offer hourly rates, while others prefer a monthly retainer or have package rates based on the volume of transactions and complexity of the work
At The Bookkeeping Studio, we offer monthly bookkeeping packages for our clients, whether you’re a small business or a big corporation. We like to keep things simple.
Pro tip
Remember, the cheapest option isn't always the best. Consider the value they bring, their expertise, and the scope of their services. It's important to ensure clarity on what each fee covers to avoid unexpected charges later on.
6. Plan for growth
Pro tip
After these steps, you should have all the information needed to make an informed decision. Before finalising, it's wise to conduct a background check if the bookkeeper will be handling sensitive financial information. Once you're satisfied, discuss and agree on a contract that outlines the scope of work, confidentiality clauses, terms of termination, and any other pertinent details to safeguard both parties.
4 questions to ask before you hire a bookkeeper
1. What is your experience with businesses like mine?
Ask about industry experience. If they’ve handled businesses similar to yours, it means they’re more likely to be familiar with the common financial practices and compliance requirements of your field. It also suggests they can offer insights and advice tailored to your business model, such as optimising your cash flow or identifying tax advantages.
2. Can you provide references from past clients?
By speaking with past clients, particularly those in similar industries to yours, you can get a clearer picture of the bookkeeper’s strengths and weaknesses, how they resolve issues, and their overall work ethic.
3. How do you typically handle communication and updates with your clients?
Effective communication is key to any successful business relationship. Understanding how and how often a bookkeeper communicates with their clients will help you determine if their style matches your expectations.
Whether it’s regular reports, meetings, or availability for questions and consultations, knowing you can get timely updates and insights into your financial status is essential for making informed business decisions.
4. What accounting software are you proficient in? How do you stay updated with new technologies and regulations?
If you value professional development, you need to be asking this question.
Familiarity with the software you already use can streamline the integration of a new bookkeeper into your operations. Additionally, a bookkeeper’s commitment to staying informed about the latest technologies and regulatory changes can greatly benefit your business by ensuring compliance and taking advantage of the most current financial management tools and practices.
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How to Hire the Right Bookkeeper: 5 Important Questions to Ask
Frequently Asked Questions
Begin by clearly defining your business needs, the volume of transactions, and any specific industry requirements. Once you have a good understanding of what you’re looking for, try out different avenues (e.g., LinkedIn, Upwork, QuickBooks Find-a-ProAdvisor, referrals, professional associations) to start your search.
The best choice depends on your specific needs. Consider factors such as the complexity of your financial transactions, the size of your business, your growth plans, and your budget when making this decision.
Freelancers are often more cost-effective and can provide a personalised touch. They’re suitable for smaller businesses with straightforward bookkeeping needs.
Accounting firms offer a team of professionals, which can be beneficial for businesses with more complex requirements or those seeking a broader range of services beyond bookkeeping.
Virtual bookkeeping services, like The Bookkeeping Studio, provide remote support and can efficiently handle businesses of varying sizes, often leveraging the latest technology for efficiency and scalability.
The cost of bookkeeping services can vary widely based on several factors, including the complexity of your finances, the volume of transactions, the level of expertise required, and the geographical location. Generally, freelancers might charge anywhere from $20 to $50 per hour, while firms or specialised services might offer monthly packages ranging from $200 to $2,000 or more.
Virtual services often provide scalable pricing models based on transaction volumes and additional services required. It’s essential to get quotes from several providers and understand what each service includes to make an informed comparison.
At The Bookkeeping Studio, we offer different small business bookkeeping packages and enterprise packages. Just let us know what you need.
Inquire how they protect data, both physically and digitally. Look for bookkeepers who use secure, encrypted platforms for sharing and storing data.
Don’t forget to set clear data access levels. Limit access to sensitive information to what’s strictly necessary for the bookkeeping tasks. When sharing financial data, use secure, encrypted methods of communication.
Find the best bookkeepers here in The Bookkeeping Studio
Finding the right bookkeeper for your business isn’t just about keeping your finances in order; it’s about setting the foundation for growth, stability, and success. A good bookkeeper does more than just record transactions and balance the books. They provide insights into your financial health, help identify opportunities for cost savings, and can be instrumental in forecasting and strategic planning.
A good bookkeeper frees up your time and provides peace of mind, allowing you to focus on running your business and pursuing growth opportunities.
The importance of this role cannot be overstated, which is why taking the time to find a bookkeeper who is not only skilled but also a good fit for your business culture and needs is vital. Discover your ideal bookkeeping partner in Australia and take the first step towards business growth today.
Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.
I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.
Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.
