This results in poor decisions and it is much harder to interpret the results. Your small business bookkeeper usually makes payments on your behalf. Expenses, supplier invoices, and petty cash can all be paid with this method. Modern bookkeepers are capable of a variety of tasks, including keeping books.

• Similarly, though, most business owners feel like they can’t afford or don’t need to hire a bookkeeper.
• They save you time by handling all the daily financial work for you and allow you to concentrate on the running of your business.
• Ask the candidate to explain anything you are concerned about in the background report.
• I have found that my customers are willing to pay for great services.
• However, on average, a Bookkeeper will charge anywhere between $35 – $60 per hour depending on the size of the business.

They save you time by handling all the daily financial work for you and allow you to concentrate on the running of your business. The real-time information they collect can help them offer you new insight into your business. Trusting the financial details of your business with anyone is a big step. So do your research carefully before you hire a bookkeeper.

What can our Bookkeeping Assistant do for you?

With software to keep track of your sales and purchases, it’s much easier for them to keep an eye on your cash flow. If you hire a bookkeeper, you can expect to receive monthly financial statements, so you know where your money is going. As we’ve covered in this guide, a bookkeeper is highly valuable to a small business and can provide more services than just financial recording and compliance.

• A bookkeeper will have to migrate your business and ensure it’s ready.
• It’s one of the best things you can do for a few reasons that include providing more accountability to you as a leader.
• Whether the accounting method is cash versus accrual is another consideration.
• You’ll need to be reasonable when setting required qualifications and strategic in where you search for candidates, depending on whether you’re hiring an employee or contractor.
• It’s best if you can find someone who uses the same accounting software as your accountant.
• Access all Xero features for 30 days, then decide which plan best suits your business.

Therefore, it pays to take your time to make sure that you hire the right person for the job. The right bookkeeper for your business should be fully trained and have sufficient experience using your bookkeeping or accounting software. And that is not all; the person should also be adept at using other standard tools, like Microsoft Excel as well as any industry-specific systems that you have. There is no doubt that a bookkeeper manages your finances and will likely have a big impact on the trajectory of your small business.

Ready to hire a bookkeeper?

For a truck driver, you could include a driver’s license check. However, for a bookkeeper, I recommend you include a financial background check. Most bookkeepers should have at least some experience with Microsoft https://www.bookstime.com/ Excel. Use our free Excel test to assess your candidates before hiring. For example, if you operate in the construction industry, a bookkeeper coming from a restaurant may not be the best choice.

Legal matters shouldn’t be handled by anyone other than a lawyer, and bookkeeping shouldn’t be handled by anyone other than a bookkeeper. Even the most skilled bookkeeper in the world is useless if he can’t communicate his findings to you and to other members of your team.

Related business insights and resources

This is because you’re only paying for the services of one person, rather than the overhead costs of an entire firm. At Wishup, we have an intensive vetting process, which conducts thorough background checks on all our potential employees. So when you hire virtual bookkeeping services from us, you are guaranteed someone whom you can trust with all your financial details. After hire a bookkeeper you hire a bookkeeper, you can get them to sign a non-disclosure agreement for additional security. A bookkeeper will also be responsible for preparing some significant financial statements for small businesses. Profit and loss statements, balance sheets, and cash flow statements are examples. Finding a bookkeeper you trust with sensitive company data is challenging.

• That way the business owner can do it on their own if they ever start to lose money.
• When I first started my business I thought I was saving money by doing my own bookkeeping.
• They prepare detailed monthly, semi-annual and annual reporting that helps businesses make sound financial decisions.
• Several ratios can be derived from the balance sheet, helping investors get a sense of how healthy a company is.
• These questions should give some insight into how the candidate thinks and processes challenging scenarios in a professional environment.
• You stay in the place of pain because you think it is just one of those things that comes along with owning your own business.