As a small business owner, hiring a bookkeeper can be a big stepping stone for further success. However, once your business has taken off, you might find yourself juggling more tasks than you can handle. And it is important as an owner to stay focused on the growth and success of your business rather than spending all your time and energy dealing with the financial aspects. However, once you reach a level of growth and stability, you will be able to take a step back and delegate responsibility instead of burning yourself out.
There are many things to consider when employing a bookkeeper. All of these questions can be answered by two broad overarching questions. Is my business capable of affording a bookkeeper? If so, how do I find a good bookkeeper?
For most small business owners, their business is everything to them. And so, putting your trust in another person to manage the finances of your business can be incredibly tough to do. While hiring a bookkeeper can prove to be extremely fruitful for your business, hiring the wrong one can be equally disastrous. To make your life simpler, here are the two questions explained comprehensively to help you decide if finding a bookkeeper will be worth your time and money.
Is your business ready for a bookkeeper?
So you have started your business and it is developing well but you are not sure if hiring a bookkeeper is worth the expense of your business. What do you do? IT’S PROS AND CONS TIME. While hiring a bookkeeper can take a toll on your financial position initially, if you are having difficulty managing the finances of your business, not having a bookkeeper will end up causing your business to sink. It is important to evaluate your options and assess whether your action will be beneficial or detrimental to your business. Most businesses struggle to handle their finances on their own as it either takes away time from their main business or it is not organised in an appropriate or timely manner, resulting in a bookkeeping mess.
Here is a list of questions you need to ask yourself and evaluate when deciding if you should hire a bookkeeper.
- Are your books always out of date and you struggle to check them and keep up with them regularly?
- Has your accountant has started handling your bookkeeping?
- Are you constantly confused by your taxes, baffled and in a mess during the end of the financial year?
- Have you had delays or missed tax write-offs?
- Is your cash flow is inconsistent? As a business it is essential to make sure you have consistent cash flow for the effective functioning of your business.
- Has the sales of your business been increasing but the turnover of your business has not moved?
- Can you increase the performance and turnover of your business without a bookkeeper?
- How will hiring a bookkeeper affect your short-term and long-term finances?
- Do you experience physical and mental exhaustion caused by the demands of your business?
After thinking about the questions above, it is time for you to decide if you should hire a bookkeeper. If you answered yes to all or most of the questions above (where applicable), you need to hire a bookkeeper without a doubt. Having bad taxes and delaying the process can prove costly for your business. So once that has been established, it is time to do some research on what a good bookkeeper is like and how you can find one for your business.
Now that you have decided on hiring a bookkeeper, the next step is crucial - hiring someone that knows it all, is trustworthy and works well with your business environment. With this set of criteria, finding a bookkeeper can seem daunting and can feel like an impossible task. However, with a little bit of organisation and a comprehensive checklist, you should be able to hire a trustworthy bookkeeper easily. Here is an informative article
to help you determine if the bookkeeper you hire is reliable.
There are many different types of bookkeepers you can choose to hire. One option is by hiring a bookkeeper employed from an organisation. The other option is to search for independent bookkeepers. However with this option, it can be a little hard to build trust with an individual rather than an accredited firm that can be held liable for mistakes done by their bookkeepers. You also have the option of hiring a permanent or casual bookkeeper. If your business does not need a full-time bookkeeper, you can always hire a bookkeeper for a contracted period of time. For example, hiring a bookkeeper as you approach the end of the financial year so you can have your taxes and finances sorted beforehand is a great idea.
What experience do they have?
The first thing, as with hiring any employee, is looking at their qualifications and experience in relation to the field. When hiring a bookkeeper, it is important to hire one with the right set of skills. Bookkeeping is a specialised job that requires attention to detail and extensive knowledge of tax, accounting and software. Look at their past training and accreditation to check their qualification. Once you have verified this, contact their personal and professional references to gain a better understanding of their work style.
Do they communicate clearly
When interviewing or browsing through bookkeepers, it is important to choose the one you are able to communicate with and put your points across effectively. Hiring a bookkeeper with whom you have easy communication with can shave a lot of stress off your work. Sometimes outsourcing means communication gets delayed and things aren’t completely in a timely manner.
Their availability works well with your schedule
Hiring an employee that is adjustable to your timetable and needs is always more preferable. Many small businesses have varying work hours as it is run by the business owner itself. Having an employee that can match to your schedule and standards gives way to the seamless integration of work between the manager and employees.
The bookkeeper you hire understands your business processes
As a small business owner, you have the freedom to set your own rules and standards for the business. And with everything a small business owner has to handle, it is understandable to have a different work processes than other businesses. In such a case, hiring a bookkeeper that can comply with your work needs and pace can prove very beneficial.
At this day and age, it has become crucial to hire a bookkeeper that knows their online bookkeeping and accounting software. Bookkeeping and accounting has evolved considerably over the last few years, especially in online spaces. Make sure the bookkeeper you hire is familiar with online bookkeeping trends and updates. This way you won’t have to worry about introducing new industry related software or tech as your bookkeeper will already be well equipped with navigating the program. The most trending accounting and bookkeeping softwares of 2019 so far are MYOB, XERO and QuickBooksOnline. Using bookkeeping software will save you or your bookkeeper heaps of time as opposed to doing it manually. A bookkeeper has many things to manage and being able to get through your business finances in a short time, allows your bookkeeper to stay productive and efficient with the other aspects of bookkeeping. At Shoebox, all our bookkeepers are experienced across the board with MYOB
, and are trained to use it for bookkeeping and accounting needs.
Your bookkeeper is motivated and has knowledge of your business
While it is definitely not needed, having a bookkeeper that understands your business's nature of work can be advantageous when working with them and sorting out finances. This may also allow them to conduct their work in a more comprehensive manner. Motivated bookkeepers with knowledge of your field of work can produce effective results as they are able to ask relevant questions relating to it before making a decision that could potentially affect the business. With finances, the smallest error in detail can cause mountain-sized problems in your business’s financial position and accounts. Having your bookkeeper ask you questions is always better than one that doesn’t communicate and has no clue what’s going on.
As a business owner, you often find yourself juggling multiple tasks at once, especially during the start-up phase. And while you may be succeeding in getting all your tasks done, the chances that all of those tasks have been done with perfection is quite slim. Taking the first step to hiring a bookkeeper can be nerve-wrecking because if you make a mistake in hiring the wrong bookkeeper you could find yourself in a business disaster and lose everything you have worked so hard to achieve. If you are looking to hire a reliable and trustworthy bookkeeper, visit Shoebox. We provide bookkeepers to small businesses at affordable rates. Our bookkeepers are knowledgeable in their field and will take the financial burden off your shoulders.