Where do you find a local bookkeeper?

When hiring a good bookkeeper, many small business owners will ask around for a referral. Others will surf the internet looking for a mobile bookkeeping service in the local area.

Where do you find a local bookkeeper, and how do you know that you are hiring the best bookkeeper for your business?

With increasing data cross checking by the ATO, and the financial obligations of business owners, its vital to keep track of your bookwork.

You need to have someone in charge of your bookkeeping who not only has the training, but also the experience to get the work done efficiently and accurately.

It can be a challenge to find the right bookkeeper, so here’s a few tips to look for:

Why Hire a Bookkeeper?

Bookkeepers are not the same as accountants, though you may find your accountant will offer to do your bookkeeping.

When they do that, you’ll find that your accountant is hiring and / or outsourcing a bookkeeper, and making a nice profit for this additional service.

The accountant is there to provide financial advice and recommendations

The accountant is there to provide financial advice and recommendations, to help you with any issues relating to taxation.

The accountant will be working from the bookkeeper’s figures. The bookkeeper records income and expenses, reconciles the bank accounts, and administers payroll.

Your bookkeeper can be hired in a full-time, part-time or contract position depending on your needs. Prior to hiring your bookkeeper, you need to ascertain the level of qualification and experience that your bookkeeper has. Contact Us for more information

Bookkeeping – Training and Education

In Australia, there is no formal qualification for bookkeeping. Educational Institutions and Bookkeeping Organizations offer training and certificates, but as at March 2010, there are legislated formal qualification required for a bookkeeper to operate in certain functions. They may have a Certificate IV in Finance – which is a stepping stone towards an accountancy qualification, they may have a degree in accounting.

Many experienced bookkeepers have no formal qualifications and can be far more valuable than a freshly qualified bookkeeper straight out of TAFE or university

Bookkeeping – Experience

Nothing beats the School of Hard Knocks qualifications. Hiring a bookkeeper that has a couple of certificates and no experience can lead to disaster.

Many bookkeepers start out by working in the accounts department of a large company, and move on to work in a more senior role in smaller companies, before embarking as a freelance, or contract bookkeeper.

Ask your potential bookkeeper for references from any accountants that they have worked for / with. You’ll find that bookkeepers will deal with a number of accountants, as each client tends to have their own accountant. Contact Us for more information

Ask your bookkeeper if they could perform the task without computer software

Bookkeepers are a rare Breed

To be able to deal with number crunching all day, and find it interesting, takes a certain kind of personality.

Attention to detail is a key factor with good bookkeepers. If they are disorganised or vague at the interview, then they may not be the person you are looking for.

Computer Literacy

With the advent of computerised accounting software packages, it is essential for a bookkeeper to be computer literate. The days of writing in ledgers and double entry bookkeeping are long gone.

Having said that, you should ask your bookkeeper if they could perform the task without computer software. If they cannot, then you need to find another bookkeeper.

The old adage “Garbage In – Garbage Out” is certainly applicable to bookkeeping. If your bookkeeper does not have an understanding of basic bookkeeping principals and has to rely on the computer software, it’s a recipe for disaster

How Much Do You Pay A Bookkeeper?

How much you pay your bookkeeper is upto you. How much do you value your business? Do you see Bookkeeping as an expense or an investment in your business?

The importance of keeping accurate financial records can not be stressed enough, and is often the reason that many businesses fail.

Many times a cheap bookkeeper has cost a small business financially through lack of experience or poor record keeping.

If you want to make a short-term saving by employing a cheap bookkeeper, then, chances are that your bookkeeper is not the best. Many times a cheap bookkeeper has cost a small business financially through lack of experience or poor record keeping.

The fees that the bookkeeper charges will be an indication of their level of confidence and experience. You can expect to pay a bookkeeper anywhere between $20 – $70 per hour. Contact Us for more information