How to Hire a Bookkeeper: Considerations + Free Job Template
Bookkeepers are responsible for consolidating accounts’ books, following up on past-due payments, sending billing reminders, processing payments for suppliers and running payroll. Bookkeepers are a more appropriate choice than accountants for basic financial tasks because their hourly rates are generally less expensive. Ideally the accounting software should be cloud-based, which means it’s accessed online. Then all of you will be able to share access to the financial data for your business.
Look for someone with a broad technical background, as well as extensive experience with your specific accounting solution. Having vendor-specific credentials does a lot to demonstrate a candidate’s expertise. Some bookkeepers offer a very limited number of services while others operate like a complete accounting department. Begin by determining what kind of assistance you want and need, both now and down the road. Then look for a bookkeeper who can meet your exact requirements. At the most basic level you will want someone who can reconcile bank accounts, A/R, A/P, and navigate your financial software.
Salary and Benefits
Although every organization has different needs, many recruiters and hiring managers look for bookkeepers with the following skills and qualifications. Understanding which skills and qualifications are required and which are preferred can help you determine the best-fit candidates. The background check performed on an employee must be related to the duties of the job. For a receptionist, for example, you could run a simple seven-year criminal background check. For a truck driver, you could include a driver’s license check.
Bookkeepers may also assist in running payroll and generating invoices for your company. An online bookkeeping solution uses cloud-based software to connect you with a team of bookkeepers, who do your books for you (like Bench). It’s similar to a bookkeeping firm, except more affordable, since automation cuts the bulk of manual work. This is a great choice for most small businesses that don’t have cash-heavy transactions.
Ultimately, a proficient bookkeeper gives you invaluable insight into your company’s finances, allowing you to make better decisions. 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.
- Or you may be thinking about selling your business down the line, and know you need immaculate books to do so.
- Bookkeepers have to pass the membership criteria of a professional organization before they’re allowed to join.
- But you have to determine the applicant’s skill level and proficiency with bookkeeping tasks.
- Use this roadmap to find the bookkeeper who truly fits your business needs.
They should also articulate what happens if those promises are not met. Large enterprises often use agencies to handle their finances. However, small and midsize businesses can also take this route. The cost of using these agencies depends on the type of service you need. Hiring an in-house bookkeeper is ideal if you have a medium-sized business and want to keep track of the bookkeeper’s day-to-day duties. However, this type of bookkeeper requires a steep financial investment.
Make Your Job Ad Relevant
Because a firm coordinates the work of multiple employees, it’s unlikely you’ll encounter the same service gaps you might expect from a single freelance bookkeeper. You don’t need to worry about your bookkeeper getting sick or leaving on vacation, since your books can be picked up by other other bookkeepers at the firm. Modern accounting software is the repository of all financial transactions for your company and can generate requisite reports in real-time. So even https://www.quick-bookkeeping.net/ if you have accounting software, odds are, you still need a bookkeeper to manage the software, enter data, file reports, identify errors and keep everything current. Responsibilities for bookkeepers can vary widely from business to business, though there are a number of very common bookkeeping responsibilities. Remember that you want to tailor the role’s responsibilities in the job description so that it’s not just aligned with the position but with your company.
So, you can take professional memberships as an indicator of your candidate’s professional status and commitment to his or her career. Following are some tips on how to find a good bookkeeper to help support your business — and to work remotely, if needed. We have provided a detailed breakdown of the potential cost involved in the recruitment stage and more further down the article, so keep reading.
Contact the candidate’s references to verify their work history, reliability, and professional demeanor. 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. The exam for a CB is longer https://www.online-accounting.net/ and more thorough than one for a CPB. Bookkeeping certifications are totally optional, unlike accounting, where a CPA designation is mandatory. Other options may include having a someone from the firm come by your business to pick up paperwork, or dropping off paperwork at the firm’s office yourself.
After completing your education, you can seek an internship and get on-the-job training to become a bookkeeper. However, it helps to have a two- or four-year degree in accounting, finance or related discipline. For example, note which software you want a candidate to be familiar with–including general programs that your office uses.
Accounting software
It also allows you to keep an inventory of your office supplies or product stock to know when and how to replenish them easily. You can also request reports, such as profit and loss statements and tax summaries. Our in-depth Zoho Books review has more details about features and functions.
How to Hire a Bookkeeper: Considerations + Free Job Template
So, make sure your job description is clear about the job history and experience you need. Remote bookkeeping services, like firms, have multiple employees. This lets them avoid the kinds of service gaps that may crop up with an individual freelancer. Since some bookkeeping firms also employ accountants, they may be able to handle your tax filing—and other accountant duties—in-house. With the growing popularity of cloud-based services, many firms work remotely with clients. In this case, you’ll need to become acquainted with and use the same bookkeeping services your firm does.
Whoever you hire needs to be trusted with the everyday details of your business finances. For your business to run smoothly, ideally you need both people. And you’d hire an accountant to handle official reporting and high level business advice. If you started https://www.kelleysbookkeeping.com/ your own business, it’s likely that you’re passionate about running it and concentrating on the tasks you love doing. But if you’re like most business owners, you’re not so interested in recording all the details of every financial transaction.
The core function of a bookkeeper is to ensure that all bills are paid on time, transactions are recorded correctly, payroll runs on time and taxes are filed correctly. So if you’re looking to hire a bookkeeper, it is essential to create a bookkeeper job description that fills your recruitment funnel with ideal candidates as quickly as possible. You can organize your books and collaborations with Zoho Books on one platform. The software allows you to add your bookkeepers and accountants and monitor them through the platform. In addition to invoicing and billing reminders, Zoho Books can access your bank accounts and payments to organize your expenses.
For instance, at Bench, all bookkeepers get training and ongoing education in bookkeeping, in addition to having multiple full-time staff dedicated just to quality and standards. Remote bookkeeping services typically charge a flat monthly fee, based on how much time it will take to complete your books every month. The number of accounts you’ll be tracking—and the frequency of transactions—may affect this. Understanding both the recruitment costs and the ongoing expenses for salary and benefits will give you a more complete picture of what it truly costs to hire a bookkeeper. This knowledge allows you to budget more accurately and make informed decisions during the hiring process. Good bookkeepers know as much about technology as they do about accounting principles.
