Finding a good bookkeeper in current times is a challenging task. Several factors affect the choice and quality of the service providers. Let us dive into some of these points for better analysis and decision-making. Accounting and bookkeeping are the most critical supporting functions for an organization. Whether a small business or a large-scale firm, every company benefits the most from accounting and bookkeeping services. Bookkeeping is a part of general accounting, indicating a narrower scope than the latter. The bookkeeping activities identify, classify, and record financial transactions in the accounting books. These functions facilitate up-to-date and continuous maintenance of accounting records and documents, allowing reliable and complete financial statements presentation. Small businesses have limited resources and require optimal resource allocation. Accounting and bookkeeping play a prominent role in such cases.
Since bookkeeping has a critical impact on a firm’s operations, it is crucial to employ a responsible person only for these activities. Bookkeeping can get messy and chaotic if it doesn’t receive adequate attention. Hiring bad bookkeepers is one reason for inefficient practices. Companies must analyze the following points while choosing an excellent bookkeeping service provider:
- Costs:
Many bookkeeping service providers provide one rate prima facie and charge hidden rates at the time of billing. These points can destabilize the internal functioning and cost allocation function. At the same time, hiring a cheap bookkeeper can cost more in the future because their experience and work won’t align with business goals. Instead, companies need to find bookkeeping service providers who charge optimal rates per their experience and qualifications.
A bookkeeper with appropriate expertise will charge rates accordingly. When businesses choose an inexpensive service provider, they risk messing up their books. It is because fewer costs are usually because of less experience, knowledge, and expertise. Availing these services can enhance issues when a cheap bookkeeper cannot face the challenges and complexities of bookkeeping. Delays in book maintenance can cause late tax filing, inaccurate calculations, foggy financial statements, etc. It can be highly loss-inducing. On the other hand, costly bookkeeping service providers need to prove their high costs. In the current competitive scenario, outsourcing vendors usually keep their costs low.
- Being proactive:
Bookkeepers are the primary information source for companies regarding their financial transactions. Every economic movement first goes through their eyes in the books. Until a person hides some information from the bookkeeper to record in the accounts, bookkeepers have real-time visibility into the financial performance, position, and progress of the business. Thus, they would know of any significant deviation affecting the company. However, many bookkeepers are not the chatty types and only provide services for their’ sake. For instance, a bookkeeper who failed the CPA test and had to settle for bookkeeping services will know but might not offer relevant services.
Such bookkeepers restrict themselves to reactive bookkeeping, providing insights or knowledge only when asked. They only focus on recording the information. However, having a proactive attitude in bookkeeping is critical. A chatty bookkeeper offers insights into any significant issues. On the other hand, a reactive bookkeeper will only answer when the owner asks a specific question. Moreover, the owner won’t know what question to ask. It becomes challenging for the firm that requires real-time transparent information instantly for faster and informed decision-making.
Thus, having a proactive bookkeeper is a blessing as they will signify any issues, deviations, or opportunities early.
- Skills/ Experiences/ Helpful nature:
Other traits companies must look for while finding an excellent bookkeeper involves evaluating their skills, experiences, and reputation. Small business owners must be diligent in checking these traits and ensure authenticity. It is easy to dupe business owners with fake licenses and certificates. Thus, small business owners should prevent such mishappenings.
Firms can test bookkeeping service providers’ skills and experiences by undertaking a background check. It involves checking the list of clients the firms have dealt with before. The small businesses will get an idea of the kind of companies they have managed before and whether it suits their needs. The background checks also help in ascertaining the reputation.
Another trait to look for in an excellent bookkeeper is their helpful nature. Even when the owner doesn’t ask for information, the bookkeeper must come forward to help the business from drowning in any unpleasant situation. They must contact the owner and report such activities if they’re doubtful of some circumstances, invoices, or bills. Providing ‘heads up’ will enhance their reliability and credibility among small business owners.
- Checking their attitude towards mistakes:
Assessing the bookkeepers’ attitude towards their job is a neat trick. A bookkeeper is a human and will surely make errors. However, their attitude towards the mistake shows their professionalism and experience. Excellent bookkeepers will not be afraid to mention their mistakes because they know how to resolve them. Asking about their record will lend owners insights into whether they feel guilt for their mistakes or not. The guilt will induce the bookkeeping services provider to fix their mistakes timely. Also, they will mention these errors to the owners beforehand to prevent any miscommunication or problems in the future. Thus, it is critical to evaluate this trait in a bookkeeper.
- Building relationships:
A bookkeeper is a primary point of maintaining relations with different parties. These include:
- Customers who purchase goods on credit and become the company’s debtors
- Suppliers who sell goods on credit and become firms’ creditor
- Other outstanding expenses creditors
- Lenders and banks from whom the firm raised long or short-term finances
- Debtors who took loans or advances from the company
Bookkeepers have the capability of maintaining long-term relations with these parties. They need to stay in touch without frustrating them and honoring their obligations. Moreover, they must record the transactions related to these parties without committing errors. These traits must be present in an excellent bookkeeping services provider for extended relationship building.
Conclusion:
Small businesses face considerable challenges in finding the perfect outsourcing partner. Staying diligent and cautious is primary in finding a suitable partner. However, companies must also ensure their experience, skills, and reputation by thoroughly evaluating their background. A bookkeeper’s attitude helps determine their compatibility with business functions and maintain relations with other parties.
