Bookkeeping?the "dreaded" word is something we all have to worry about. Business owners rarely go into business to deal with the financial aspects of running a business. It's easy to understand why! Who wants to do all those boring record keeping functions? Not many. Therefore, one of the first things most entrepreneurs do is hire a bookkeeper. Though hiring a friend, relative or anyone who isn't experienced with the basics of bookkeeping may be a recipe for DISASTER!
You may have the best of intentions and they probably do to; however, you need to be objective when hiring a bookkeeper if you want a GREAT one!
5 Tips for Hiring a Great Bookkeeper:
1. KNOWLEDGEABLE. Make sure they have a basic understanding of accounting and how the "big" picture all fits together. The difference between an accountant and a bookkeeper is that an accountant will do more analysis and usually has additional training. So, while you may not need an accountant on staff, you do want someone who has a basic understanding of the difference between assets, liabilities, equity, income, cost of goods sold, and expense accounts.
2. AVAILABLE. Ensure that they will be available and dependable to keep your bookkeeping up to date. Your information should be input on a consistent basis so you can get reports in a timely manner. If they are trying to "squeeze" this function into their other responsibilities, they may not give it the focus they should.
3. ACCOUNTABLE. You want a bookkeeper that will keep you accountable. If they have checks or deposits that they are unsure of, you want them to be willing to hold you accountable and get good information for record keeping. You don't want someone who is going to code everything to "miscellaneous."
4. COMPETENT. You want to keep your books on a computer, not by hand. So ensure that your bookkeeper is competent in using a computerized bookkeeping program, like QuickBooks®. You want a full-service package that incorporates your budgeting, estimating, invoicing, job costing, bookkeeping, and reporting aspects all in one. Though it is key that they are competent enough to be able to input good information into the computer system.
5. FAMILIAR. Having a bookkeeper that is familiar with your industry will shorten the learning curve and provide better details. While the basic bookkeeping fundamentals are applicable to all industries, there are very different specifics needed for different industries. Construction companies rely on job costing to understand their profitability. While, retailers are focused on inventory aspects. Restaurant, non-profit, and service-based industries require different insights too. It's important to have some basic accounting knowledge, but ideally you want someone with industry familiarity.
7 Questions to include in your interviewing process:
1. What companies/industries do you have bookkeeping experience in?
2. What computer software programs are you familiar with? Word? Excel? QuickBooks®? Other?
3. How do you continue to improve your skills?
4. How do you trouble shoot when you have a problem?
5. What time management secrets do you use to ensure projects are completed on time?
6. What are the basic financial statements and why are they important?
7. How will they help you be accountable to the details of record keeping? Some feel uneasy about holding their boss "accountable", but that is exactly what you need!
Hiring employees should never be taken lightly, especially when they are going to be doing your bookkeeping! Without good financial reports, you have no idea how your business is doing. Garbage In = Garbage Out. Input is critical to having a successful business report that you can utilize in your management decisions. These same requirements should be incorporated if you are hiring an outside firm to do your bookkeeping also. These 5 Tips for Hiring a GREAT Bookkeeper will help you!
Contact: Pam Newman is a Certified Management Accountant, Author, and Certified QuickBooks® ProAdvisor for Financial and Point-of-Sale software. For more information, visit her website at http://www.quickbooksinformation.com or call 816.304.4398. Email: pam@rppc.net
![]() |
|
![]() |
|
![]() |
|
![]() |
Do you sometimes find yourself just going "through the motions"... Read More
In a world full of complications sometimes we overlook the... Read More
How many "get rich schemes" have you joined? Or have... Read More
What kinds of things effect mobile service businesses P and... Read More
Over regulation of small business is so intense it is... Read More
Just a few years ago, when one thought of a... Read More
Most new small businesses won't be in business this time... Read More
Business owners rarely go into business to deal with the... Read More
Most doctors never distinguish the difference between customers and patients.... Read More
You know your prospects need what you sell. You know... Read More
Small business owners often enter their field with great expectations.... Read More
We visited Lexus USA, home of the Lexus North America... Read More
Send handwritten notes. That applies whether you're a guy or... Read More
When a person knows and knows not that he knows.... Read More
We are noticing an increase in the length of time... Read More
Concrete Roof Tile Business: During the 2004 summer season, storms... Read More
If you run a pressure washer business you need complete... Read More
Writing a business plan is a fundamental step to ensuring... Read More
Debt collection letters--an overview"Debt collection letter" in the singular may... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Last week's question from Anthony R. on how to choose... Read More
Let me get right to the point. The single most... Read More
Researching information for a recent business plan, I came across... Read More
Tap these treasures of ideas. The best money you can... Read More
Mobile carwashing is hard work, it is tough on the... Read More
If you are a franchisee of a large franchise system;... Read More
Small business success is very similar to learning to walk,... Read More
Many new ventures are preoccupied with all the money they... Read More
I meet and talk to hundreds and hundreds of business... Read More
The revenue history is a vital piece of your power... Read More
There were only an estimated 1800 active franchisors in this... Read More
Self-cleaning glass has been talked about a lot, with such... Read More
If you ask most small business owners what priority CRM... Read More
As small business owners we're in business to make money... Read More
If you're organized, smart, capable and willing to work with... Read More
Do you have all the customers your business can use?The... Read More
If you're starting your own business or currently work for... Read More
The Federal Trade Commission which governs the franchise industry thru... Read More
My clients and many of my readers are small and... Read More
One major issue not being addressed right now in the... Read More
Many government department heads are on the take. Oh they'll... Read More
We have all seen the mobile washing units cruising our... Read More
Becoming a contractor or sub-contractor for the U.S. government can... Read More
Have you ever wondered what the difference is between a... Read More
You may be in Mail Order, Direct Mail, or you... Read More
When pressure washing heavy equipment each piece of equipment has... Read More
Being a small or home-based business owner can be loads... Read More
Want your small business to flip instead of flop?! Statistically... Read More
Many small business startups fail within the first 2 years... Read More
To wash an airplane there are many items you will... Read More
Yes, that IS security when nobody can downsize you because... Read More
Washing manufactured homes, mobile homes, can be a lucrative and... Read More
(Although this article is geared towards small business owners, the... Read More
In the first part of this article I put forward... Read More
Here are a few tips on how to hand out... Read More
Is your business making money? Would you know?Figuring out whether... Read More
As small business managers, we juggle limited resources in a... Read More
Are you responsible for your results?What comes to mind when... Read More
It appears the mini-blimp indoor theme and concept is making... Read More
Opening a carpet cleaning business is a great way to... Read More
Commonly folks have asked me what the technical difference is... Read More
One of the hidden perks of raising six children is... Read More
At first glance, this topic may seem a little repetitive,... Read More
You make the decision to go into business and for... Read More
Canon City, Colorado is known for it's 6 Prisons; State... Read More
Increase your profit potential by identifying ? and avoiding ?... Read More
Small Business |