Bookkeeping services are essential to any growing business, but the idea of hiring a bookkeeper can be intimidating for any small business owner. Where do you start? How do you know if they’re a good fit for you? Here are seven questions to ask before hiring a bookkeeping service.
What to Look for Before Hiring a Bookkeeping Service
1. What bookkeeping services do they offer? Bookkeeping is the process of tracking and recording financial transactions. A bookkeeper’s main objective is to ensure that all the financial records are in order. They can, however, offer additional services that can benefit your business:
If they work in an accounting firm, there are additional services an accountant, CPA or financial advisor can perform for your small business. Some of these additional services include:
2. What are their delivery times? Bookkeeping services normally reconcile your books at the start of the month, or whenever your bank statements from the previous month are available. You’ll want to confirm when you can expect to hear from them every month with your financial statements.
If you’re looking for one-time or infrequent services, however, ask if they are willing to work on an as-needed basis.
Some bookkeeping services can offer bi-weekly, or even weekly meetings to discuss your financial health. If you’re looking to hire an accounting firm to help you grow your business, meeting more than once a month may be a good idea to make sure your business is on track for success.
3. What do they charge? You should be able to get a quote from a bookkeeper, after or during your initial meeting. Many firms will even offer a free consultation to get a better understanding of your business and financial needs, in which you can acquire a quote for their services.
It’s important to know what types of services you are looking for before your meeting so they can give you their most accurate quote.
4. What are their credentials? Bookkeepers may have college training or may be certified, however, this is not a requirement to become a bookkeeper.
They may be certified by one of the two nationally recognized certifying bodies: the National Association of Certified Bookkeepers or the American Institute of Professional Bookkeepers.
Some bookkeepers are also CPAs or work with an Accounting or CPA firm that can provide you with further services and assistance if needed. Working with a team of staff members can help to ensure you are getting the most accurate and timely service.
It’s worth asking what their credentials are and who they have experience working with. Take some time to research the bookkeeping service and read reviews and testimonials. This can give you a better idea if they are a good fit for you and your business.
5. Do they have experience with your specific business structure? It will be of benefit to you if the bookkeeping service has experience with your particular business structure, be it an S-Corp, Sole Proprietorship, or Corporation.
They will be able to do their work quicker and with more ease if they are familiar with your level of business. Managing a big business has different challenges than someone just starting an LLC or working as a sole proprietor. It's important to work with someone who has the experience you need.
6. How far back can they reconcile your accounts? Account reconciliation is the most important function of any bookkeeping service. Bookkeeping is a record of what happened to a company's money and inventory during a certain period of time, usually from the day the business started.
How far back a bookkeeping service can balance your books, depends on how long you’ve been in business without any bookkeeping.
Normally, they will go back to the start of the business, or from the prior calendar year, whichever comes first. You can, however, have your bank accounts reconciled years prior. It will just take a significant amount of time, as the bookkeeper will have to go through your accounts one year at a time.
Depending on how far back you will need to reconcile your accounts, may impact how much a bookkeeping service will charge you.
7. Will you need to purchase additional software to utilize their services? Many bookkeepers will use a software program to reconcile your books. Sometimes this means you will need to subscribe to an online software program that will aid them in obtaining your statements and categorizing your transactions.
Other bookkeepers will work solely from the statements you provide to them monthly. Keep in mind, this means they may not be able to work as efficiently and quickly and their services may be limited.
BRINKER SIMPSON CLIENT ACCOUNTING SERVICES
Whether you are looking to outsource your entire accounting department or seeking assistance with basic accounting and bookkeeping, we will work with you to create a customized solution that meets your needs and scales with you as you grow.
Meaningful, well-organized financial records provide business owners an accurate financial picture to manage their business effectively. Our qualified staff can assist you with the day-to-day bookkeeping and accounting tasks so you can focus on growing your business.
Contact our team via the form below for additional assistance.