Hiring a bookkeeper is important in terms of growing a business and competing favorably. It’s a decision that every business owners have to make. Although hiring an online bookkeeping service is not easy. You are putting your trust and your company’s financial future in the hands of individuals that you have never met face to face. If you hire a bad bookkeeping service then they can set your business back years leaving you to handle all the consequences.So before hiring an online bookkeeping service you have to consider these 7 things.
This will make sure that you hire the right bookkeeping service for your company/business.
Identify your Needs
Before hiring an online bookkeeping service it’s important to determine what kind of service your company/business need. For that, you have to understand the financial goals of your business and your bookkeeping needs. For example, you may need daily bookkeeping service or monthly bookkeeping service. If you need monthly bookkeeping service then it’s pointless to pay daily basis. So identifying your needs will help you chose the right bookkeeping service for your business and save your money.
Service charge matters or not
While investing on bookkeeping service you have to remember that you are investing in the future success of your business. So when you are hiring an online bookkeeping service, keep in mind that cheaper isn’t better. So try to find bookkeeping services that fit your budget and needs. Then compare prices of each candidate. And check if they charge additional fees for reporting. Try to get the perfect balance between your budget and quality.
Look for bookkeeping skills
You are hiring an online bookkeeping service so that they will look after your financial report, accounting etc. This will save your time and allow you to concentrate on your business growth. So it’s important to make sure that the bookkeeper you are hiring has enough knowledge and right skills to perform all the bookkeeping tasks like reconciling bank statements, accounts payable, payroll and posting & updating journal entries. Or you are wasting both your time and money.
Bookkeeping software and security
This is another very important part you should consider before hiring an online bookkeeping service. There are a lot of bookkeeping software’s available in the market. Before hiring the bookkeeping service make sure that the bookkeeper knows how to use the software that you have selected for your business. On the other hand, if the bookkeeper recommends software for you then you must make sure that your accounting data is 100% secure.
Check experience and references
Make sure the bookkeeping service you are hiring is a reputed one. You should inquire about the experience the bookkeeper provided. Tell them to provide you with some reference. Examine them and see if they are true or false. This will ensure you the reputation of the company also the quality of the service they will provide.
Fix the rates
When you select the bookkeeper, don’t forget to fix the rates. The last thing you want from your bookkeeper is a surprise when the bill arrives. You must gather detail information on the cost and services that will be provided by your bookkeeping service. Some bookkeeper provides monthly services with a fixed rate that does not change. But if you don’t understand the service plan then you must ask what services are covered exactly and how many extra fees you have to pay for other services that are not included in the plan.
Good communication is important
Related: Find out more about business planning for beginners at Financegab.com
Before hiring an online bookkeeping service you must clarify the communication process, like how the bookkeeper will communicate with you and your company account. Processing the day to day transactions is a part of bookkeeping so you have to communicate with your bookkeeper regularly. If the communication with your bookkeeper consumes a lot of times then it will slow down your business growth. Ask them how they communicate with their clients. Normally it’s via phone or email. So if you are comfortable with the phone call then ask your bookkeeper to provide phone support, or you can use email for communication.
Now that you know what to consider before hiring an online bookkeeping service, I hope you will find the right bookkeeper for your company. My advice search through your network and see if they have any referrals for you. If you can’t find anybody then the internet is there to help you.
Abdul Quddeus is a CPA, CGA and founder of MAQ CPA Professional Corporation. He helps small business owners, professionals and individuals save their hard-earned money on taxes and let them free up their time to concentrate more on core business by providing tax planning and compliance, bookkeeping and accounting services.