How do I select the right bookkeeper for my business?

Bookkeepers manage the most delicate and important component of accounting. Any error within bookkeeping may come with a cause and effect upon accounting. This is actually the reason why it’s essential that you select your bookkeepers thoroughly. Understanding how to choose the right bookkeeper is very important for the success of one’s business. Therefore how will you find out if the bookkeeper in which you’re going to employ is actually the appropriate one? Here are a few techniques to assist you with your search.

How do I select the right bookkeeper for my business?

Bookkeepers and accountants should be in a position to assist you through creating meaningful and concise information with regards to business, which includes; Provide the correct and appropriate financial information to enable you to make the right business decisions. Supply the required financial data to help your business planning and price controls. Supply historical info concerning the monetary elements of the company. Assure that the correct financial controls are set up in order that exclusively the right persons could get things. Make sure that you could fulfill the legitimate and legislative financial needs.

Evaluate your requirements

Know the tasks you would like your bookkeeper to carry out on your behalf and begin the selection process. Create a list and check it twice. This should clearly outline your expectations and requirements. You will need to establish the exact responsibilities of your bookkeeper. Start at the beginning and clearly define your expectations – Your expectations may include:

1. Daily/weekly requirements e.g. daily recording of transactions.

2.Payroll requirements e.g. weekly preparation and processing.

3.Invoicing e.g. preparation, processing, posting of invoices and statements.

4.Purchases e.g. processing current supplier invoices, preparing payables report, processing payments, sending remits etc.

5.Accounts Receivable Maintenance e.g. debt collection etc.

6.Preparation of BAS, PAYG/ IAS, Superannuation etc.

7.Daily/Weekly/Monthly Reconciliations.

8.End of Month and Financial Year End Procedures.

9.Management Reporting.

10.Liaison with Accountants, Lawyers and/or other relevant parties.

Selecting the Contractor

As a general rule, there are a few things to look for in a bookkeeper. Essentially, look for what is important to you. You should look for a bookkeeper/bookkeeping service that is highly skilled. He should be familiar with your software system and will help your business grow. Here are some points you should look for while selecting the accountant:

1.Are they dependable and accurate as well as skilled in using accounting and sometime spread sheet software.

2.Do they enjoy paying attention to details.

3.Does the bookkeeping service have any procedures for checking the work before it ‘goes out’?

4.Does the bookkeeping service do payroll, superannuation, BAS etc.

5.Does the bookkeeper have any on-going training?

6.Will they help me if I don’t understand all this accounting stuff?

7.Is there any way I can reduce my bookkeeping costs?

Relevant Experience

Contracting or hiring bookkeeper who is highly experienced will be an investment to your business. You should also ensure they have extensive experience and undertake regular training to stay at the top of their game. Knowledge of multiple software systems increases your bookkeeper’s knowledge and is a huge advantage to you and your business.

Service Tests – Having a trial period will help you determine on a first hand basis whether the company can really handle your demands and can meet your standards. Some companies may have groomed themselves too much through advertising in order to attract clients. Be careful with these types.

How much do you charge? What does this include?

Most independent bookkeepers charge between $25 and $60 an hour. How much they charge depends on location and the level of work involved, ranging from minimal record keeping to virtually all the tasks leading up to preparation of financial statements. Some bookkeepers also prepare financial statements and do tax work as well.

Trust & Integrity

This is paramount when selecting a bookkeeper or bookkeeping service to work with and should be considered to be number one on your list of selection criteria. Your bookkeeper will be granted access to your most confidential information, relating to both your personal and business needs, so you need to be confident that the person you select is trustworthy and honest, with high moral principles and expectations. Honesty and integrity and client confidentiality are crucial. What security and privacy measures do you have to ensure that no one gets hold of confidential financial information? Is this guaranteed?

Last But Not the Least

“If your bookkeeper gets sick or goes on holidays who will take over the processing of the work? The last thing you need is for your bookkeeper to get sick, be unable to process the work and your BAS is late. A worse scenario is that your bookkeeper decides to leave the industry and you have to go through the whole selection process again.”

1 thought on “How do I select the right bookkeeper for my business?

Leave a Reply

Bookkeeping at $50 per month

Would you like us to show you how we maintain your books of accounts every day, without you having to spend too much & without you risking accuracy of the numbers?

Contact us

Sign up for Free Australian Tax Updates and Recommendations

GROUPS

Recent Posts

Recent Comments

Archives

RSS NEWS FROM ATO