How to Find a Good Bookkeeper
Q: “Gabrielle, I’m in the market for bookkeeping services. Any suggestions for what to look for and what to expect in pricing?”
This is a typical inquiry I receive through my website. And for good reason. It’s a great question! Let me tell you why.
Doing the bookkeeping in your business won’t make it an amazing, profitable success. But NOT keeping up with the books properly, or not keeping track of your finances at all, can definitely kill your business. That’s why sooner or later, most entrepreneurs realize that it makes sense to get someone else to handle their books for them.
But that’s easier said than done.
When it comes to hiring a bookkeeper, whether in-house or virtually, there are many choices. The most popular options, however, can cause you BIG headaches and cost you thousands unnecessarily.
The biggest problem: Hiring someone who is not competent enough to handle the job.
Yes, you may already have QuickBooks software (admittedly designed for non-accountants) and a willing wife / girlfriend / friend of a friend who is ready to do the “data entry” for you. But that does not mean that you can simply hand over your financial information and get on with running your business. At least not without some nasty consequences down the road.
In fact, even if you search for and find someone who claims that they are a “qualified” freelance bookkeeper, you are not guaranteed clean financial reports for management, and accurate tax reporting. It’s just not that easy.
The scary reality is that anyone can call themselves a bookkeeper, and proceed to really screw up your books…and your business. I see it all the time. My clients pay me thousands as a QuickBooks consultant to come in and untangle their financial data after they’ve tried (unsuccessfully) to do their own bookkeeping, or hired a so-called “bookkeeper” to do it for them.
So, what’s the answer to the question above on what to look for when hiring a bookkeeper so you can save yourself from all the potential heartache?
Ask Questions, lots of them.
Just because someone says they run a bookkeeping service business or that they use QuickBooks doesn’t mean that they are qualified to do so. Be proactive and ask the following questions:
* What training or experience do you have with double-entry bookkeeping? How do you keep your skills up to date?
* Do you hold any certifications for bookkeeping and/or QuickBooks?
* What type of businesses do your clients have? Are you familiar with my type of business or industry? Can you provide references?
* How do you handle transactions that are incomplete or unclear? (HINT: You do NOT want someone who simply codes everything to a “miscellaneous” account. They should be proactive, communicative and have a system for gathering all the needed information, taking responsibility for preparing complete records.)
If you are considering an in-house employee, I also recommend that you give that person a test to assess her skills. Don’t just accept whatever is listed on the resume. The American Institute of Professional Bookkeepers has a free test available for employers through their website (see Resources below).
What about pricing?
The cost for hiring outsourced bookkeeping services can run anywhere from around $25/hr. to $75/hr. or higher, depending on your location, the services provided, and how they are administered (on-site, virtually, or online).
When it comes to bookkeeping services, however, price is not always an indication of quality. If the most important factor in your decision is low price, realize that you may be setting yourself up for a mess that will cost much more to clean up later. Pay closer attention to true qualifications than the hourly rate.
If Your Budget is Too Tight and You Need to Do It Yourself
QuickBooks is the best software choice because of the user friendly interface. But you need to understand the key basics of the program to use it correctly. So you will need to investment in education.
There are inexpensive books, videos and in-person training classes available. Use what suits you best, just don’t wing it. Get the training needed to handle the basics adequately, or you will have problems later.
The investment you make now in starting the new year off right, whether by hiring a qualified bookkeeper or by learning how to do it right yourself until you can hire someone qualified, will give you a solid foundation for building and managing a solid, profitable business.
It’s just a smart choice.
Resources:
Where to find freelance bookkeepers:
QuickBooks ProAdvisor Database
American Institute of Professional Bookkeepers
Bookkeeper Hiring Test (for screening an employee):
QuickBooks Online Video Training:
QuickBooks Basics: New User Essentials
