You might be an incredible entrepreneur or a creative small business owner, but odds are, you don’t know much about bookkeeping.
Whether you like it or not, knowing how to organize your finances can be a vital tool for performance tracking. Bookkeeping allows you to keep tabs on your failures and successes. If you’re looking for bookkeeping services, you might want to grab a pen.
Read on. We’ve compiled a comprehensive list of the top five things to look out for when searching for the best bookkeepers.
What To Look For in Bookkeeping Services
There are a number of things you should be aware of when you want to hand over your accounts to a stranger. Here, we’ll discuss the top five things to keep in mind.
Experience
Undoubtedly, experience should play a huge role in deciding between bookkeeping services. Because you want your small business to grow and thrive, you’ll want to spend the extra cash to get the best of the best.
However, make sure your bookkeeper is experienced in your field. For example, for a small start-up, you’ll want someone who has been in the business of start-up for a while.
Look for around 10 years of experience.You don’t want someone who has been doing bookkeeping for landscaping companies for 30 years.
Make a list of what you want you bookkeeper to be knowledgeable about.
Education
This point goes hand in hand with the last. The person you decide to hire should have some sort of basic accounting education. A general business degree does not necessarily qualify someone for the job.
You should make sure your bookkeeper can anticipate problems you may have before they become a nuisance. Someone with formal training will be able to recognize these issues. They will also know how to comply with policy and the ethics of the trade.
Software
Most bookkeepers these days know how to conduct and manage your finances electronically. It doesn’t matter if you pay your suppliers or vendors in cash or checks.
When looking for bookkeeping services, ask whether or not they can transfer your documents to an efficient electronic system. It should be streamlined and easy to install and run. Most will use a combination of online banking systems and computer software.
There are great websites out there for those who want to learn more about online solutions and tax software.
Accounting Policies
When discussing your business with your bookkeeper, it’s incredibly important to outline some accounting policies. These include when bills should be paid, when monthly books are closed, and who should review what. If you have loans or grants, make sure you’re following the set guidelines given to you for the proper disbursement of funds.
Keeping your bookkeeper in the loop by making them aware of your assets is vital for the smooth running of your business.
Managing Cash Flow
A great bookkeeper will know how to keep your head above the water without sacrificing your company. Small businesses tend to fail when they prioritize short-term crises from which they can never recover.
Your accountant should be able to foresee any problems you might have and should have the financial wisdom guide you and help you make important decisions.
Wrapping Up
Handing over access to your books can be a stress-inducing process. Hopefully, these tips can help you feel more comfortable hiring a bookkeeper.
If you’re still overwhelmed by the whole process, there are thousands of resources online that can help you find the business that’s perfect for your small company.