How much does a bookkeeper cost?

how to hire a bookkeeper

You’ll likely need off-the-shelf accounting software in order to check your books and help your virtual bookkeeper categorize any transactions they’re unsure of. Be prepared to communicate mainly through email or messaging apps like Slack. While Equivity offers a fairly robust bookkeeping package, they don’t use their own software. If you sign up for Equivity, your virtual bookkeeper will use QuickBooks, or another off-the-shelf accounting app, to manage your bookkeeping for you. You’ll need to learn how to use this software in order to help categorize transactions or enter transactions manually.

Are bookkeeping and accounting different?

  • Equivity offers a range of virtual services for businesses—from administrative assistants to paralegals.
  • As indicated by the name, this job board focuses on flexible roles.
  • Conduct thorough interviews to assess their experience and compatibility with your company.
  • This means that you don’t record an invoice until it is actually paid.
  • When deciding if you should do your bookkeeping yourself or hire outside help, the decision is entirely up to you.
  • As utilizing accounting software has become common, you might want your bookkeeper to know how to use the accounting software your business uses or plans to use.

They record every financial transaction, from sales and purchases to expenses and receipts. It involves coding each transaction accurately and categorizing them to maintain a clear and organized financial record. A small business can likely do all its own bookkeeping using accounting software. Many of the operations are automated in the software, making it easy to get accurate debits and credits entered.

Which accounting software are you familiar with? Which do you like best?

This method records financial transactions when money is exchanged. This means that you don’t record an invoice until it is actually paid. Similarly, you don’t notate outstanding bills until you actually pay them.

Bookkeeping vs. Accounting

And bookkeeping might not be something you enjoy or have time to understand. All your hard work bringing in new business and keeping customers happy counts for nothing if you’re not making more money. Your hard work bringing in new business counts for nothing if you’re not making more money. Whatever bookkeeping solution you choose should offer you up-to-date books on a regular basis, an affordable rate, and detailed records. However, be aware that business size does affect a bookkeeper’s workload and may lead to you paying more or even for a second bookkeeper to alleviate some of that burden. Consider administering a practical bookkeeping test or assessment to evaluate their technical skills and problem-solving abilities.

The real-time information they collect can help them offer you new insight into your business. Whoever you hire needs to be trusted with the everyday details of your business finances. It’s often the case that your bookkeeper will be the constant accounting contact for your business. They’ll be best placed to answer questions about where the money is coming from, and where it’s going.

how to hire a bookkeeper

For example, if you run a restaurant where employees routinely have tips, minimum wage is frequently an issue. You’ll likely want a bookkeeper that’s worked in the same industry. So, make sure your job description is clear about the job history and experience you need. Asking what kind of accounting software your bookkeeper uses is important because it determines whether or not you’ll have administrative rights. If you don’t have rights to the software, you may have issues accessing your financial information if you don’t have access to the software your bookkeeper uses.

  • Some bookkeepers act as management accountants and have skills to analyze financial statements and records, whereas some of them are limited to data entry work.
  • If you’re still on the fence about hiring a virtual bookkeeper, crunch some numbers to help reach a decision.
  • They offer personalized services that include unique financial knowledge.
  • Prepare a list of questions that assess the candidate’s knowledge, skills, and experience.
  • Whoever you hire needs to be trusted with the everyday details of your business finances.
  • If a significant portion of your time is consumed by handling financial matters instead of concentrating on your core business activities, it’s a red flag.

When a virtual bookkeeper uses software you’re comfortable with, you have a smoother onboarding experience and can hit the ground running. Every business, from the biggest corporations to pre-revenue startups, benefits from bookkeeping. Up-to-date financials allow business owners how to hire a bookkeeper to make informed budgeting decisions, identify potential tax deductions, and have stress-free tax seasons. Bookkeeping creates financial statements, like your balance sheet and income statement, that hold key information about your cash flow, profitability, and business health.

how to hire a bookkeeper

How To Manage Bookkeeping in 4 Steps