Tracking a business’ financial data and keeping it organised is a long and involved process that starts with accurate bookkeeping. Not only does a business benefit from the meaningful reports prepared by a bookkeeper for owners to analyse; it also gains an advantage over early tax planning.
With two critical aspects of managing a business reliant on the effectiveness of its record-keeping, a skilled and trustworthy bookkeeper is indispensable to running a successful business. As a business owner, you’ll want to have such a professional on your payroll.
Here’s how to spot a great bookkeeper:
A Bookkeeper’s Tasks and Responsibilities
Bookkeepers concern themselves with documenting a business’ financial transactions on a daily basis, including:
- Accounts payable or company purchases
- Accounts receivable or receipts
- Debit and credit
- Payroll
- Super payments
They track and generate reports of organisations’ activities, usually using computer software like QuickBooks, MYOB and Xero.
Lastly, bookkeepers are in charge of storing all documents relating to businesses’ accounting and finances: income tax records, financial statements, journals, etc.
If you’re looking for someone to handle your books, then they should be able to do everything that was mentioned above.
Ask Them to Explain Answers to Relevant Questions
Bookkeepers aren’t just a human filing and report-generating resource for a business. They also need to know how best to organise the financial information they receive, as well as have good enough communication skills for a business to make use of their reports.
When going through your bookkeeper candidates, ask them probing questions and have them explain their answers. Here are some examples of what to ask:
- Is accrual or cash basis reporting better for business management?
Choose a bookkeeper who will expound on their choice. If they are any good, they’ll tell you that accrual-basis bookkeeping leads to financial reports and that cash-basis bookkeeping is preferable when filing taxes. Both are valuable to the business for different reasons and they will adjust their work based on your company’s needs. - What is a balance sheet/Balance sheet equation?
Mastery over a balance sheet is necessary for the professional who will handle the records of your business’ transactions and prepare financial reports based on them. They should be able to explain, in plain words or through a demonstration, that the balance sheet contains your business’ assets, equity and liabilities.
You can tell a lot about how your future relationship with your bookkeeper will go by the way they choose to answer your questions. It will reveal if they are honest and reliable, and you’ll see how proactive they are about volunteering information and educating you even before you sign a contract.
Outsource Your Bookkeeping Needs to Keep Spending Down
Small and medium businesses don’t need a full-time bookkeeper on their payroll to ensure the company stays in the black. As a business owner, you will be able to save a significant amount by choosing to outsource your bookkeeping needs to a trustworthy financial service provider.
Additionally, these providers often have teams made up of professionals who specialise in other areas of the industry. They will be better equipped to respond to your need for other financial services options.
Outsource Your Bookkeeping Needs to a Reliable Company
Keeping your books straight need not give you a headache. Your Finance Department removes the burden of having to keep accounting and financial records accurate and up-to-date from your shoulders. Our outsourced bookkeeping solutions ensure that you are ready to take on tax season and more while keeping your expenses down. Speak with us today.
