I’m ready to hire a bookkeeper—how do I find the right one for me?
It is no big secret that there’s a massive shortage of bookkeepers out there. A common question we hear is, “what do you look for in a bookkeeper?”
Here are some tips:
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Certifications. Do they have a degree, certifications in QuickBooks, Xero, etc.?
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Referrals. Were they recommended by a CPA, tax accountant, or other professional?
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Recommendations. Do they have current clients who you can talk to and get feedback from?
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Experience. Can they tell you the difference between a balance sheet and profit and loss? Do they reconcile the balance sheet accounts monthly? Do they do cash basis or accrual basis accounting? Do they carry liability insurance?
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The biggest tip. You get what you pay for. Any bookkeeper that says they can do your books for minimal pay most likely is not a professional. Certifications, software, insurance, and business registrations to keep up to date cost thousands of dollars annually. Accounting and tax rules and regulations change all the time; finding a bookkeeper that keeps up with all of this will save you money at the end of year. Most professional bookkeepers charge $70 to $100+ per hour in New England, or charge a flat fee per month based on the number of transactions. Tax firms are usually $200+ per hour, with most firms charging a minimum of $1k for a business return these days. Who would you rather be paying to do the work on your books?
We spend probably 30 to 40% of our time doing cleanup because the business owner didn't realize how messy their books were until their CPA pointed it out or charged them to do the cleanup. We enjoy working with all businesses, but boy does it feel bad walking into these situations and having to explain all the work needed to get things in order or list our all the amended returns needed.
Do your due diligence. Ask lots of questions, get referrals and recommendations. Nothing would make me happier than to see the amount of time I have to spend on saving a business with bad books go down.