A good bookkeeper or bookkeeping service will help your business to stay on track with its growth. Hiring a professional for bookkeeping helps take your mind away from accounting and auditing responsibilities and focus on more critical business issues.
When professional bookkeepers are used, there will be much accuracy in the process. But not all bookkeepers are made equal, and not all can satisfy the unique requirements of your business.
Unless your business has 30 or more employees or several million rupees of annual revenue, you may possibly not need to hire an in-house, full-time bookkeeper.
This leaves you with 3 alternatives: hire a freelancer, work with a bookkeeping firm or use a remote bookkeeping solution. Each of these has its own pros and cons, which will help determine which is the right one for you.
Following are some tips to hire the best bookkeeping services:
A great bookkeeper can serve as glue that keeps the organization in one piece. It is vital that he or she should have experience in the bookkeeping of a firm of similar complexity and size as yours. You must seek someone who has worked in a firm at the same point in the lifecycle of your business.
For instance, the bookkeeping requirements of a 20-year-old construction company differ widely from a fast-growing start-up. Experienced bookkeepers will be able to think long-term and anticipate any requirements before they arise. They will be familiar with your industry and understand its distinctive bookkeeping needs.
Ensure education and training.
A great bookkeeper will be adequately trained and educated and possess much business acumen. Though a master�s degree may not always be wanted, it is important that he or she understands the basic finance and accounting of the business. Bookkeepers must be well trained and keep track of changes to accounting procedures and rules that directly impact their role.
Ascertain technical skills.
Without being stuck in the 20th century, you need to use a software system to maintain the financials of the company and manage the books of the business. The best bookkeeper must be trained and experienced in using accounting/ bookkeeping software.
They should be experts at using common technical tools like Microsoft Excel or any other systems suited to the industry. They will be able to conduct bank reconciliations and process online payments.
Consider attention to detail.
Bookkeepers must have high detail orientation. They should be able to balance accounts and identify errors. They will have the ability to generate accurate and timely financial reports which are concise and clear.
High experience in cashflow and credit management
One important skill possessed by a bookkeeper is the capacity to stay on top of cashflow and to anticipate cashflow needs. Factors like recurring annual events, bonuses, taxes, and business seasonality should be considered while determining the needs of cashflow. The bookkeeper needs to balance all these needs for maintaining the stability of the business.
Tax planning and preparation
Your bookkeeper must know how to prepare and plan for tax season. They need to be aware of applicable tax deadlines for items like tax estimates for the quarter. They must know how to keep receipts and books well organized for audits and tax seasons.
In sum, the right bookkeeper for your business is one that has the right acumen and expertise in your specific industry. One can hire the right bookkeeper by ascertaining their skills in the above factors.