Outsourced Bookkeeping 101: How to Choose a Bookkeeper for Your Business

Knowing how to choose a bookkeeper can be tricky, especially when managing and maintaining your accounting books has already been giving you headaches. That’s why outsourcing bookkeeping tasks to an external provider often feels like the best way to lighten the load.

But with so many options available, how do you find the one that truly fits your business?

In this post, we will guide you through what to look for and what to avoid when selecting the right bookkeeper to keep your finances organized and accurate.

But First, What Type of Bookkeeper Do You Need?

There are three main types of bookkeepers, each with its own experiences and responsibilities. Knowing them helps you identify which one best helps with your most pressing bookkeeping needs.

• General bookkeeper: They completed basic bookkeeping training and usually have little to no field experience. They deal with common tasks, such as:
  • Recording all transactions into the general ledger
  • Posting invoices and payments
  • Keeping up with monthly bank reconciliations
• Full charge bookkeeper: They’re essentially the same as a general bookkeeper, except that they shoulder the full accounting responsibility. They’re usually hired by small businesses that don’t see the need for a controller or have simple, uncomplicated accounting transactions. Their tasks include:
  • Preparing financial statements and related reports
  • Monitoring the cash levels
  • Handling the payroll
• Certified bookkeeper: They’re certification exam passers who manage everything that a general or full charge bookkeeper does daily, along with other accounting needs of the business. Some of their responsibilities are:
  • Preparing all financial statements
  • Reviewing the accounting books for accuracy
  • Preparing and reporting tax documents and payments

What Should You Look for in a Bookkeeper?

Finding the right bookkeeper for your business is akin to looking for a needle in a haystack, especially if it’s as large as the talent pool outsourcing firms like Logix BPO maintain.

Fortunately for you, we have an assessment here to help narrow down the candidate list.

Credentials

Review their qualifications and pay special attention to their training and any certifications.

Knowing which area of bookkeeping they are best trained in helps you determine whether they can manage the tasks you plan to assign.

Meanwhile, holding certifications such as the AIPB’s Certified Bookkeeper and NCPB’s Certified Public Bookkeeper indicates that they have met the rigorous education, experience, and code-of-ethics requirements of the field’s governing bodies.

Relevant Experience

Prioritize hiring a bookkeeper who’s experienced in the type of business and industry you’re in, simply because they’re more familiar with its financial needs, systems, tools, and benchmarks.

The rationale behind this is that they can make your bookkeeping (and, by extension, your financial management) more efficient and provide insights and advice on your financial health.

If, by chance, the talent you like doesn’t have such work experience, ask them if they’re capable of learning the required knowledge and skills to understand how your business operates.

Reputation and References

A strong track record indicates that the talent is proficient, reliable, and trustworthy—qualities that assure you that they’ll manage your business’s finances well.

To start, contact the references listed on their CV and discuss their experiences with the talent.

If they’re certified, check their standing with the governing body.

If they’re active online, check their reviews and ratings.

You can also seek the outsourcing provider, requesting who among those in the talent pool comes highly recommended by their clients.

Business Fit

A talent might only be good on paper but not in fact—at least, not in the way you expect your ideal bookkeeper to be. So, practical skills evaluation is critical in the hiring process.

With the test you prepared beforehand, ask them to:

• Perform data entries on financial transactions
• Identify and correct common errors in an accounting book or a financial report
• Track outstanding accounts receivable and payable balances
• Reconcile a bank statement

Another important aspect to assess business fit is their proficiency with the accounting software you use, such as QuickBooks, Xero, and FreshBooks. They should also be capable of learning new software and technologies as needed for your business.

Cultural Fit

It’s important to work with a bookkeeper who shares your values and work habits. This alignment makes for easy communication, productivity, and team dynamics, which, in turn, positively impact your overall business performance.

Here are some of the questions you can ask to assess cultural fit:

• Have you made a mistake at work? Can you describe it, and what you have learned from it?
• What kind of work environment would make you most inspired and productive?
• What level of autonomy would you like to have?
• If a teammate turns to you for help, how would you entertain them?
• How do you manage your time and deadlines?
• What’s your most proudest achievement in your previous roles?
• Have you experienced conflicts with colleagues? How did you handle it?

What Separates a Good Bookkeeper from the Poor Ones?

A bookkeeper backs your business by maintaining the integrity of your financial records and, at times, provides insights to help with critical business decisions.

If you hire someone who does bookkeeping poorly, you risk having costly, inaccurate financial data and tax and compliance issues. But more than that, you’ll be making decisions based on information you can’t trust.

So, what should you look for to determine whether the talent is a good bookkeeper?

• They have ethical integrity: They demonstrate integrity in handling sensitive financial information, respecting its confidentiality and relevant laws and regulations.

• They ask questions: They seek clarity on all the financial data that comes their way, so they reach out to relevant people whenever they’re unsure about its treatment or when issues like record discrepancies arise.

• They grow with you: They’re capable of supporting you in every need or challenge your business may face as it scales.

• They have a structured workflow: They document their processes and timeline for completing your accounting books and delivering reports that carry through to year-end so that the work remains seamless and your finances stay organized, even if another bookkeeper steps in.

• They’re proactive: They stay ahead of potential issues, addressing any unusual transactions and discrepancies and suggesting solutions before they become a financial and legal burden on your business.

What Are the Red Flags You Should Watch Out For?

Like any job, you’ll meet bookkeepers who don’t meet the professional standards. That’s why you should be vigilant in recognizing the warning signs during the interview and skills assessments to save you and your business from costly mistakes.

• They can’t communicate well.
• They have questionable work history.
• They don’t keep up with the latest bookkeeping knowledge and practices.
• They refuse to adapt to new bookkeeping software or processes.
• They occasionally make mistakes and miss deadlines.
• They lack professional responsibility.

Keep Your Financial Records Accurate and Clear

Knowing how to choose a bookkeeper is about finding a reliable, trusted partner who will look after your business’s financial health and management.

By leveraging the rubrics we shared above and partnering with an outsourcing provider like Logix BPO, you can ensure your accounting books are accurate and compliant, gain clearer insights into your profit and loss, and make more confident financial decisions.

If you need help finding a bookkeeper who fits your business, we are more than happy to screen potential talent and build a highly efficient outsourced bookkeeping team for you.

Let’s discuss your needs further today.