6 Factors to Consider When Hiring Bookkeeping Services

Did you know that only 40 percent of small business owners report feeling very or extremely knowledgeable about financial management and accounting? Are you part of this group, or are you less-than-confident in your financial skills?

If the latter is true for you, have you ever thought about hiring bookkeeping services to help you manage your business’s finances? If so, read on for some tips to help you find the right person (or people) for the job.

What Do Bookkeepers Do?

Bookkeepers and bookkeeping services carry out a variety of tasks related to managing a business’s money. They keep track of all the business’s transactions, as well as their incoming cash.

Bookkeepers are also responsible for producing financial statements and reports for company leaders. They often handle payroll, prepare invoices, and monitor overdue accounts, too.

Benefits of Hiring Bookkeeping Services

Why would you want to hire a bookkeeper for your business? Why not just pay for the latest bookkeeping software and try to figure it out on your own?

Technically, you could take this approach. It’s not the most time-saving or cost-effective option, though.

Outsourcing your bookkeeping needs frees you up to focus on other aspects of your business. In the long run, it can also save you money, especially when tax season comes around.

There are lots of other reasons to consider your options for bookkeepers and bookkeeping services, including the following:

Stay Organized

A lot of business owners struggle with the organization side of things. They might be great at handling the “big picture” aspects, but they have a hard time keeping track of details like due dates for bills and invoice payments.

This is where a bookkeeper comes in handy.

Outsourcing bookkeeping to a professional makes it easier for businesses to stay organized. This makes life a lot easier for everyone when making payments on time, filing taxes, and planning for the future.

Stay Informed

Working with a bookkeeping service can also help business owners and managers to stay informed about how the company is doing. When you work with a bookkeeper who keeps all of your financial information well organized, it’s easy for you to access the reports you need at a moment’s notice.

If you need to provide information on your company’s expenses for the last year, all you have to do is ask your bookkeeper. They’ll provide you with a report in no time.

Increase Profits

Hiring a bookkeeper can help to increase your profits, too. That’s right, spending money can actually set you up to earn more money over time.

When you invest in bookkeeping services and have access to streamlined, organized financial information, you’ll likely find that you can make smarter decisions for your company. This, in turn, creates more opportunities for profit increases and overall business growth.

How to Choose the Right Bookkeepers

Okay, you’re starting to feel a little more interested in hiring a bookkeeper. How do you choose the right person for the job, though? Here are 6 tips to help you find the best bookkeeping services for your business:

1. Ask for Recommendations

If you’re feeling lost trying to find a bookkeeping service, try reaching out to your colleagues.

Do you have friends or family members who run businesses? If so, ask them which bookkeeping service they use and find out if they’d recommend it for your business?

This can help you narrow down your options and make a shortlist of candidates.

2. Check Their List of Services

Before you agree to work with a particular bookkeeping service, visit their website and find out what specific services they offer.

Do they offer everything that you need to handle your business’s finances? Are there any gaps in their service list?

If you need help with something you don’t see listed on the website, you can always reach out to the company directly and see if they can still help you with it.

3. Consider Costs

Of course, you’ll need to factor costs into the equation.

The average salary for bookkeepers in the U.S. is $44,686 per year. The good news, though, is that you don’t have to pay this amount if you work with a bookkeeping agency rather than hiring an individual bookkeeper to work full-time at your company.

Bookkeeping agencies often charge a flat monthly fee for their services. This makes it easier for you to budget, and you get to avoid a lot of the costs that come with hiring a full-time employee (salary, benefits, office overhead, etc.).

4. Ask About Experience

Whether you’re working with an agency or looking to hire an individual bookkeeper, it’s a good idea to ask each candidate what kind of bookkeeping experience they have.

Have they worked with businesses like yours in the past? Are they familiar with the specific financial challenges businesses in your industry face?

Asking these questions can help you ensure you’re hiring someone who has your business’s best interests in mind and knows how to help you grow and see the best results.

5. Read Reviews

Don’t forget about reading online reviews.

As the experts at balancedassetsolutions.com have pointed out, the best bookkeepers will have plenty of positive reviews online. Pay attention to past customers’ opinions about a particular bookkeeper (or bookkeeping service) before you agree to work with them.

6. Read Contracts Carefully

Finally, be sure to read a bookkeeper or bookkeeping service’s contract carefully. Take note of any fine print so you know exactly what you agree to when hiring them to handle your business’s finances.

Level Up Your Bookkeeping Today

If you’re ready to take the plunge and hire someone who has experience with bookkeeping, these tips will help. Keep them in mind to narrow down your options and have an easier time hiring bookkeeping services.

Remember, just because you have a bookkeeper, you still need to keep an eye on your business’s finances! Want to learn more about how to do this? Head to the Business section of our site for more resources.