When should you hire a bookkeeper?

You should hire a professional bookkeeper when you're serious about treating your business as a business.

See, some small business owners spend their valuable time trying to figure out their book when they should be treating it as a job to be completed, just like any other part of their business.

As an owner, you should be focusing on the bigger picture of your business, and delegate the day-to-day tasks that can be outsourced to professionals.

Now that you're considering hiring a professional, we'll show you how to find a bookkeeper who's the right fit for your business.

Questions you should ask your future bookkeeper

What is included in the scope of work?

Bookkeeping and accounting services come in all different shapes and sizes. The requirements of your business are going to be different to one another's business. A professional bookkeeper will discuss your specific needs and clearly explain what services will be offered and what software solutions will be needed to help you succeed.

What are your qualifications?

Bookkeepers can have a variety of qualifications and still be more than competent to complete the job. Some Bookkeepers will have Certificates in Accounting/Bookkeeping and also be members of bodies such as the ICB or ABN.

Other Bookkeepers may be accountants and have Bachelor's or Post Graduate Qualifications in Accounting or be members of professional bodies such as the IPA, CA or CPA.

If a Bookkeeper intends to submit your Business Activity Statement (BAS) they also need to be registered as a BAS agent with the Tax Practitioners Board (TBA).

Do you need to come to my office or can you work remotely?

You'll need to understand how your Bookkeeper runs their business. Some bookkeepers will work from your office, and others will work remotely. Generally, with the availability of technology, bookkeeping is a job that can be conducted entirely remotely. A remote bookkeeper can save you time, space and money.

What experience do you have in my industry?

It's best to find a bookkeeper with experience in your industry. If your bookkeeper hasn't worked in your industry, they'll have to spend valuable time learning the ins and outs and researching the relevant technology to help streamline your processes.

How will we communicate?

A majority of your bookwork won't require constant communication with your bookkeeper. From time to time, you and your bookkeeper will need to communicate with each other. It's important to understand how this will occur. Communication can occur over the phone, email, or video chat. Your bookkeeper might have a preference. It's also important to set out communication timelines and how quickly each other should expect a response.

What turnaround times should I expect?

When you engage a bookkeeper, you should reach an agreement on turnaround time. This is a two-way street; your bookkeeper might not be able to complete important reports or BAS obligations until they receive certain information from you. You should also be aware of when to expect monthly reports from your bookkeeper, so you can run your business efficiently.

How will you keep my information secure?

Bookkeepers routinely deal with sensitive financial information; your bookkeeper should have processes in place to keep this information safe. Online accounting platforms such as QuickBooks and Xero allow for most of this data to be accessed securely, but your bookkeeper should also keep their computers, hard drives and passwords secure.

What pricing structures do you offer?

There are a couple of ways your bookkeeper may charge you. Some bookkeepers may charge a fixed monthly fee, and others may charge by the hour. Both fee structures have their advantages and disadvantages.

Fixed fee: With a fixed monthly fee, it doesn't matter how long it takes to complete your books. You'll know how much your fees will be each month, and this will help with budgeting and cash flow forecasting. Make sure you're fully aware of what work is included with your fixed fee; otherwise, you might incur further charges for extra work.

Per hour: When paying per hour, you'll only pay for what you need, so if you have a quieter month and there's less work, your fee will be lower. If you don't need a service offered in a package, you won't pay for it. However, if your books are a bit more complex or unorganised, you're going to have to pay for the bookkeeper's extra time.

What accounting platform are you an expert with?

Ask your bookkeeper what accounting platform they have experience using. If your business has already implemented a particular platform, you'll want a bookkeeper who's a master with it. If you're open to change, your bookkeeper may be able to transfer you over to their preferred platform, and maybe even get you a discount!