You have your business up and running, or maybe you are just starting out. You are ready to outsource your bookkeeping, but you don’t know where to look to find a QUALITY bookkeeper. SO… where do you find them?
Before you can start consulting with potential bookkeepers one of the first things you are going to need to know is WHERE to find them. You basically have two options: online or in person.
If you go the online route you can find them through a quick Google search, looking at the QuickBooks ProAdvisor directory, or looking on social media sites like LinkedIn and Facebook.
If you are having trouble finding them online then look around the area you live. You can check with your Chamber of Commerce, ask another business friend for a recommendation, or talk with your CPA or tax professional.
What Qualifications Should They Have?
While you are in the process of narrowing down the bookkeepers you would like to work with you will want to make sure this person is qualified to do your books and do them correctly. Some of the things that you will want to look for are:
- Education
- Program certification
- Time in business
- Experience in your Industry
- Rave reviews
Out of this list, I would say education and program experience should be the MAJOR things you are looking for. You want to look for someone whose education background is in accounting or finance or has taken a reputable bookkeeping course, such as Bookkeeper Business Launch. This will help to ensure that they have the knowledge to do what you are contracting or hiring them for. You don’t want someone who does not know the difference between a debit and credit or how it affects certain accounts. If they know the ins and outs of bookkeeping, then they can help you with your businesses bookkeeping and do so properly.
Program Experience is also invaluable. You want someone who knows how to use the software well. Someone who not only knows the software like the back of their hand, but someone who knows how to utilize it for your business specifically. One of the major programs is QuickBooks. Someone who is certified in QuickBooks Online or Desktop will be able to utilize this program to work extremely well for your business. This is one of the reasons I suggest looking in the QuickBooks ProAdvisor Directory; you already know this person has certification to help you with this software. A bonus is they can get you wholesale prices on QuickBooks Online.
The time they have been in business, experience working with your industry, and rave reviews are also good indicators if they will be able to serve your business well. But don’t let this stop you from working with someone new that you feel would be a great fit! Everyone has to start somewhere, and you never know how beneficial they could be for your business and helping you understand your numbers.
What Should You Expect During the Consultation?
Now that you have found a few bookkeepers that you would like to consult with or interview you are probably wondering what to expect. During the consultation the bookkeeper will ask you about your business. They should be looking to see:
- What your goals are
- What your biggest struggle is with your business’s finances
- What your current process is like
Ultimately, they are trying to get to know you and your business. They want to make sure this is a good fit for both parties involved, as you should be making sure for you as well. After they get to know you and your business, they are going to want to know what you expect to get out of them doing your businesses bookkeeping that way everyone is on the same page.
What Questions Should You be Asking?
While they are asking you questions you should be asking questions as well. You want to be sure that this bookkeeper is going to meet your needs. After you know their qualifications (which it may take a consultation to find out about) you will want to find out more about them and the services they offer. Below are some of the questions you should be asking:
- What services will be provided?
- What is the delivery and response time?
- How do you know your information will be safe?
Before you pay for a service you will want to know what you will be getting out of it. All of this can be tailored to your business but not all bookkeepers provide the same services. Some will not want to do payroll services, or A/R and A/P management. This is something you will need to know before working with them.
Some of the things related to bookkeeping are time sensitive. Like taxes! Or making sure certain bills are paid on time. You do not want to have late fees or fines because your bookkeeper was not proactive. You need to know that reports will be delivered/presented to you in a timely manner every month or quarter depending on your business’s needs. You also want a bookkeeper who is going to get back to you in the time frame you expect. You do not want to be waiting weeks or days for something that needs answered right away. Find out their response times and make sure they follow through if you do work with them.
The next one would be making sure your information is secure. Finances are a sensitive topic to talk about. They are also something you will want kept private and you will not want someone else accessing. Make sure that they, or one of their trusted employees, are the only ones who will have access to your books.
How do bookkeepers bill?
Bookkeepers usually bill one of two ways: hourly or flat monthly fee. Both of these have their pros and cons. With hourly you know you are paying for the time they worked and nothing extra, but the time they work can vary on a monthly or weekly basis making it hard to predict what your bill will be. With a flat monthly fee, you know exactly what to expect each month. You will get the same services and the price will not change. The only difference with this is that if your bookkeeper becomes more efficient you will still be paying the same fee.
Bookkeeping is very much a ‘what you pay for is what you get’ type of service. If you want a low budget bookkeeper you are going to get budget bookkeeper work. If you want a knock your socks off your feet bookkeeper who delivers perfect books to your CPA, always has you ready for tax time, and continuously presents your books to you on a regular basis explaining everything and pointing out potential areas for improvement then you will end up paying more.
What are the next steps?
After the consultation there are a few things that need to be done before your bookkeeper can work on your books:
- Have your books reviewed by the potential bookkeeper
- Receive a proposal from the bookkeeper
- Accept the proposal
- Receive the engagement letter
- Sign and return the engagement letter
The bookkeeper will need to review your books before they can give you a proposal. They will be looking to see if any clean-up work or catch up work is necessary. They will also be making sure they are charging you appropriately by checking how many transactions you have a month, the number of bank accounts and credit cards that will need to be reconciled, and if there are any loans or any other items that need to be included in the scope of your bookkeeping needs.
Once your books are reviewed the bookkeeper will send you a proposal. This is where you will receive a breakdown of the steps that need to be taken for your books, what you should expect from this bookkeeper, the next action items, and how much these services will cost. If you agree with everything then your bookkeeper will send you an engagement letter to be signed and returned and the onboarding process can begin.
Conclusion
The process to finding a fantastic bookkeeper can be long. But it should not be something that is taken lightly. Having your books done properly will save you time and money. Your CPA will also be thankful that they do not have to go back in and rework your books come tax time. Looking online or in person should help you link up with the right bookkeepers and verifying they are qualified to handle your bookkeeping should not be overlooked. After you go through the consultation your potential bookkeepers will put together a proposal for your review and you can decide on who to go with. Once the engagement letter is signed the onboarding process can begin and you will be on track to having the headache that bookkeeping can be handled for you.