Bookkeeping?the "dreaded" word is something we all have to worry about. Business owners rarely go into business to deal with the financial aspects of running a business. It's easy to understand why! Who wants to do all those boring record keeping functions? Not many. Therefore, one of the first things most entrepreneurs do is hire a bookkeeper. Though hiring a friend, relative or anyone who isn't experienced with the basics of bookkeeping may be a recipe for DISASTER!
You may have the best of intentions and they probably do to; however, you need to be objective when hiring a bookkeeper if you want a GREAT one!
5 Tips for Hiring a Great Bookkeeper:
1. KNOWLEDGEABLE. Make sure they have a basic understanding of accounting and how the "big" picture all fits together. The difference between an accountant and a bookkeeper is that an accountant will do more analysis and usually has additional training. So, while you may not need an accountant on staff, you do want someone who has a basic understanding of the difference between assets, liabilities, equity, income, cost of goods sold, and expense accounts.
2. AVAILABLE. Ensure that they will be available and dependable to keep your bookkeeping up to date. Your information should be input on a consistent basis so you can get reports in a timely manner. If they are trying to "squeeze" this function into their other responsibilities, they may not give it the focus they should.
3. ACCOUNTABLE. You want a bookkeeper that will keep you accountable. If they have checks or deposits that they are unsure of, you want them to be willing to hold you accountable and get good information for record keeping. You don't want someone who is going to code everything to "miscellaneous."
4. COMPETENT. You want to keep your books on a computer, not by hand. So ensure that your bookkeeper is competent in using a computerized bookkeeping program, like QuickBooks?. You want a full-service package that incorporates your budgeting, estimating, invoicing, job costing, bookkeeping, and reporting aspects all in one. Though it is key that they are competent enough to be able to input good information into the computer system.
5. FAMILIAR. Having a bookkeeper that is familiar with your industry will shorten the learning curve and provide better details. While the basic bookkeeping fundamentals are applicable to all industries, there are very different specifics needed for different industries. Construction companies rely on job costing to understand their profitability. While, retailers are focused on inventory aspects. Restaurant, non-profit, and service-based industries require different insights too. It's important to have some basic accounting knowledge, but ideally you want someone with industry familiarity.
7 Questions to include in your interviewing process:
1. What companies/industries do you have bookkeeping experience in?
2. What computer software programs are you familiar with? Word? Excel? QuickBooks?? Other?
3. How do you continue to improve your skills?
4. How do you trouble shoot when you have a problem?
5. What time management secrets do you use to ensure projects are completed on time?
6. What are the basic financial statements and why are they important?
7. How will they help you be accountable to the details of record keeping? Some feel uneasy about holding their boss "accountable", but that is exactly what you need!
Hiring employees should never be taken lightly, especially when they are going to be doing your bookkeeping! Without good financial reports, you have no idea how your business is doing. Garbage In = Garbage Out. Input is critical to having a successful business report that you can utilize in your management decisions. These same requirements should be incorporated if you are hiring an outside firm to do your bookkeeping also. These 5 Tips for Hiring a GREAT Bookkeeper will help you!
Contact: Pam Newman is a Certified Management Accountant, Author, and Certified QuickBooks? ProAdvisor for Financial and Point-of-Sale software. For more information, visit her website at http://www.quickbooksinformation.com or call 816.304.4398. Email: http://www.quickbooksinformation.com
Culver prom limo ..If you are the boss and you think your job... Read More
TRUTH IN THE LAWN MOWING INDUSTRYWe do not wish to... Read More
The reason we Franchisors call it an exclusive territory is... Read More
Pity parties are nothing new. In fact, we do it... Read More
When you awoke this morning, you found yourself buzzing with... Read More
Many smaller businesses choose niche markets for various reasons and... Read More
A Private Investigator is a professional trained in the art... Read More
What unspoken message are you sending your clients and customers?... Read More
Ask anyone trapped in a cubical about their entrepreneurial dream... Read More
As an entrepreneur you can learn a lot by following... Read More
Every business plan book tells you how the Executive Summary... Read More
One of the greatest pitfalls in e-commerce is Field of... Read More
If you're like the rest of us, you've spent a... Read More
Think of your business as a living, breathing, organism. It... Read More
Whether it has been thrust upon you by external market... Read More
This year, some 700,000 American businesses will be sold. Most... Read More
What is Business Valuation? The term business valuation is the... Read More
Senior citizens are generally not a large marketing segment for... Read More
A recent survey indicated that clean Taxi Cabs Fleets have... Read More
Think the best way to get more customers is to... Read More
An observation while returning home from a seminar: Getting away... Read More
Are you responsible for your results?What comes to mind when... Read More
There are many choices when thinking about a small business... Read More
We were more than excited. Our women's doubles tennis team... Read More
My colleague, Jane, recently lamented to me an all too... Read More
Wood Dale limo ..Sexual Harassment is a disturbing part of employment life in... Read More
Do You Really Need a Toll-Free Number for Your Business?... Read More
Part of the power plan is making sure you have... Read More
In today's marketplace the words 'job security' have become an... Read More
Ongoing support for a franchise system is omnipotent. A major... Read More
Car wash businesses are unique to other businesses. In fact... Read More
Today required franchise disclosure documents are over 200 pages generally.... Read More
Did you know that satisfaction is the number one emotion... Read More
If you have a busy private practice, chances are you... Read More
A consultant must remember that the business belongs to the... Read More
1. Know Where You're Going ? Coach Herb Brooks had... Read More
Here are some important points to take note of if... Read More
Many mobile pressure-washing companies turn to government contacts to make... Read More
If you're an entrepreneur responsible for your own small business... Read More
What makes a business relationship?What really makes a business relationship?... Read More
This morning, I went to take a short walk outside.... Read More
It is most fascinating to study how entrepreneurs spot opportunity... Read More
The Federal Trade Commission is upgrading the franchise law and... Read More
If I had $1.00 every time I heard someone say... Read More
Company mottos can easily be printed on a business card.Sometimes... Read More
A Small Business Opportunities Magazine is one of the new... Read More
Increase your profit potential by identifying ? and avoiding ?... Read More
It is imperative to have your business legally prepared. How... Read More
Writing a business plan for a mobile car wash is... Read More
To maximum potential profits and dollars in a mobile washing... Read More
Small Business |