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Pros and cons of hiring a bookkeeper

If bookkeeping is not handled effectively, receipts and paperwork will pile up. If you want to learn whether hiring a bookkeeper is right for you, schedule a free call with a DiMercurio Advisors team member. Hiring a bookkeeper could be one of the best investments your small business could make — or one that you don’t need yet. So even if you don’t hire a bookkeeper for the long-term, a short-term arrangement can equip you with the basic, yet essential tools you need. To receive the CB, an individual needs to have two years of on-the-job bookkeeping experience. They’ll also need to sign the AIPB’s Code of Ethics, and complete the exam.

• With a reliable bookkeeper, you can focus on your business instead of constantly worrying about cash flow and expenses.
• Read on to learn how to hire a bookkeeper, tips and questions to ask, and the benefits of handing over the work to the pros.
• That includes recording and categorizing bank transactions, reconciling those transactions and preparing financial statements like balance sheets and profit and loss statements.
• Using your job board of choice, you can scan for bookkeepers in your area with the experience you seek.

Whether you want to hire an in-house bookkeeper, a third-party bookkeeper or an online service, you’re going to have to pay something. See the pros and cons of multicollinearity meaning below to see if it’s right for you and your business. If your business is growing along and doing your own bookkeeping is overwhelming you, it’s usually right. Typically, it’s more expensive to hire a firm than a freelance bookkeeper, since firms have higher overhead to cover. Even if your bookkeeper is insured against errors and omissions, you—or your business—are on the hook in case of errors.

You don’t have strong bookkeeping skills

Hiring the top talent for your business is both challenging andrewarding. Specify desired responsibilities and tasks and identify the software your organization uses to attract candidates who are already proficient. The steps in hiring a bookkeeper are similar to hiring any other employee, but there are a few details to note. Without proper bookkeeping, it would be easy for transactions to go unrecorded, left to pile up until the end of a financial period.

• If your prospective bookkeeper does, you should consider what you’d do if they’re sick or call out for other reasons—have a backup plan in case your bookkeeper is out of office.
• Laura is a freelance writer specializing in ecommerce, lifestyle, and SMB content.
• Whether you want to hire an in-house bookkeeper, a third-party bookkeeper or an online service, you’re going to have to pay something.
• And our recruiters are well-versed in helping companies hire remote workers.

To find a bookkeeper, you need to go where candidates are—job boards. I recommend posting to at least three different job boards so you get a good mix of applicants. To specifically seek freelance bookkeepers, check out our top picks for online bookkeeping services.

Bookkeeping for Your Small Business

If you find someone who is a good fit for your business needs, it doesn’t matter if they are in California while you work from New York. You’ll want to create a contract that outlines details, such as deadlines, rates and expectations so that everyone is on the same page. When first starting out, market yourself as a professional who is well-versed in managing accounts, reconciling transactions, providing financial overviews and balancing budgets. Ask for testimonials from people who have utilized your services in the past and spread the word about your offerings through a website or social media. You should consider your business’ needs, transaction volume and budget before you hire a bookkeeper. A bookkeeper can make it easier to do your taxes and give you more time to run your business — but they can cost more and take time to get used to.

How to hire a bookkeeper

Companies often outsource the organization of their finances to independent professionals, then hire accountants for more complex issues and tax filing. A bookkeeper for a small business is responsible for many day-to-day financial operations. That includes recording and categorizing bank transactions, reconciling those transactions and preparing financial statements like balance sheets and profit and loss statements. They can also set you up with and teach you to use payroll software and accounting software.

Should you hire a bookkeeper or an accountant?

Bookkeepers track your numbers, while accountants often interpret those numbers to analyze your business’ performance. As you shop around, try to find out whether the remote service you’re considering is able to work with accountants. If you’re worried about not having someone you can count on everyday, and don’t mind paying a bit more, a bookkeeping firm is a smart choice. This typically comes at the end of the financial year, when clients’ books need to be “closed” for tax season.

Alternative titles for this job include Accounts clerk

The annual salary of a full-time bookkeeper, according to the Bureau of Labor Statistics (BLS), averaged about $45,000 in 2022. According to BLS data, bookkeeper salaries range from as low as about $30,000 to over $65,000. Although these are fairly wide ranges, they can be narrowed down based on your industry, the experience of the bookkeeper, the nuances of your business, and your company location. 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.

If you opt to hire a bookkeeping employee and want more in-depth tips, check out our guide to hiring employees. Look for candidates with relevant educational backgrounds, such as a degree in Accounting, Finance, or a related field. Pay attention to the candidate’s work experience, particularly if they have prior experience as a bookkeeper or in a similar financial role. Using your job board of choice, you can scan for bookkeepers in your area with the experience you seek. To save time, use our free bookkeeper job description template, which you can tweak according to your business needs.