Do you experience existential dread whenever tax season rears its ugly head?
You’re not alone. Over 30% of small businesses entrust bookkeepers with their accounts, but 30% means many companies handle their own business finances.
As businesses grow, so do financial responsibilities. Meticulous bookkeeping is essential for tax accounting, shareholder relationships, payroll, compliance, and auditing. One mistake can cause a serious setback.
Hiring a bookkeeper is the best way to avoid financial reporting mistakes. An excellent bookkeeper decreases your risk even more.
Here are three critical things to consider before choosing a bookkeeper.
1. Proven Bookkeeping Experience
There are a few ways to hire a bookkeeper.
For starters, you could place a job ad and interview individual bookkeepers. Outsourced bookkeeping is another popular option. What matters is that your bookkeeper has proven experience.
Potential bookkeepers should include five to ten years worth of bookkeeping experience on their resumes; experience could consist of bookkeeping for mom n’ pop businesses to working with large accounting agencies.
Education is your next concern.
Where did potential bookkeepers go to school? How were they trained? Do they have any special certifications?
Experience is crucial when it comes to money. Professional Accounting Services mitigate experience concerns by hiring trained professionals who understand all aspects of financial reporting, including your country’s compliance standards.
2. Pricing
Every business owner wants to save money. Price is an understandable priority when searching for a bookkeeper, but don’t let bargain basement prices fool you.
Going with the lowest offer may come at a higher cost down the road.
You may not receive the quality and services you were expecting. Remember, accuracy is crucial in financial reporting. Focus on value instead.
Bookkeeping is complex, and you may need several accounting services. Assess your accounting needs before settling on a bookkeeping solution. Once you’ve pinpointed the services you need, compare several top-rated options.
3. Request Quotes when Hiring a Bookkeeper
Comparing bookkeepers is a bit of a process, but don’t skip this next part!
Bust out your phone and contact your top choices. Inquire about specific services, like payroll processing and tax preparation. This is also a good way to assess a company’s knowledge and professionalism.
Communication is great, but you also need service estimates. After all, you have to squeeze bookkeeping services into your company budget.
Quotes are a hallmark of any professional bookkeeping business. Gather quotes from your top choices to perform a complete comparison, including services offered.
Along with quotes and service comparisons, read client testimonials and service reviews. Client satisfaction is key, and fellow business owners love to sound off on their favorite (and not so favorite) services.
Get Your Books Back on Track
Don’t let the books land your business in hot water. Avoid costly business mistakes by hiring a bookkeeper or accounting service. Remember to consider experience, prices, services, and quotes as you narrow down your choices.
Do you have enough resources to thrive? Bookkeeping is one of many business essentials. Check out the blog to discover more tips and tools for entrepreneurs.
People who are running a start-up business must hire a bookkeeping service that will be able to fix the necessary financial report and statements for them. Well, I agree with you that the service must have at least five to ten years of experience in the said industry. You’re also right that a bookkeeper must be able to assess their business’ accounting needs.