Over the past couple of decades, outsourcing has been proven to be an effective way to ensure the successful completion of various projects and functions when qualified permanent staff within an organization are unavailable.
Business ventures of all sizes, including self-employed Solopreneurs, turn to outsourcing when there is a job to do and insufficient time, staffing or expertise available to do it in-house.
Public relations, payroll management, graphic design, website design, technical writing for computer software, building security and commercial and residential cleaning are frequently outsourced functions.
Bookkeeping is another function that is frequently outsourced.
Some business owners hire a bookkeeper because they loathe even the thought of diving into financial record-keeping and management.
While it is smart to outsource what one knows is not a strength, fear and loathing of the basic financial management of your venture is unwise.
Eventually, a business owner must learn to understand the three primary financial documents- the income statement (profit & loss), cash flow statement and balance sheet- and interpret what the information in those documents reveal about how to effectively manage your business.
That said, an expert bookkeeper will more than likely save an entrepreneur money and aggravation, keep the venture out of tax and legal trouble and contribute to business profitability.
It is imperative that this person is chosen carefully.
A dose of good luck is also very helpful! Here is what you can do to find the best bookkeeper for your business:
All differences between the company's bank statement and its financial statements will be identified.
Moreover, you can view a copy of all checks written and verify that signatures are valid and authorized.
Some businesses hire a separate bookkeeper to perform reconciliations, so that an unbiased pair of eyes can review differentials (most of which will be normal, merely deposits and check payments in transit) and will be unafraid to follow-up on anything that looks questionable.
Best of luck and thanks for reading, Kim
Business ventures of all sizes, including self-employed Solopreneurs, turn to outsourcing when there is a job to do and insufficient time, staffing or expertise available to do it in-house.
Public relations, payroll management, graphic design, website design, technical writing for computer software, building security and commercial and residential cleaning are frequently outsourced functions.
Bookkeeping is another function that is frequently outsourced.
Some business owners hire a bookkeeper because they loathe even the thought of diving into financial record-keeping and management.
While it is smart to outsource what one knows is not a strength, fear and loathing of the basic financial management of your venture is unwise.
Eventually, a business owner must learn to understand the three primary financial documents- the income statement (profit & loss), cash flow statement and balance sheet- and interpret what the information in those documents reveal about how to effectively manage your business.
That said, an expert bookkeeper will more than likely save an entrepreneur money and aggravation, keep the venture out of tax and legal trouble and contribute to business profitability.
It is imperative that this person is chosen carefully.
A dose of good luck is also very helpful! Here is what you can do to find the best bookkeeper for your business:
- Learn the types of businesses that he/she has worked with.
It is useful to hire a bookkeeper who has worked with clients in your industry (but not direct competitors) or with clients of a similar profile (e.
g.
start-ups).
An understanding of expectations and common practices, typical problems and good solutions will then be brought to the table.
- Verify your candidate's education, certifications and professional society memberships.
Education and associations reflect the level of professionalism and priority that the candidate places on his/her career.
This quality will likely be demonstrated in work done for clients.
See also the candidate's web site and/or LinkedIn page.
- Inquire about the candidate's employment history prior to going into business independently.
Previous employment in corporate finance is a big plus.
Especially ifthis person will take charge of your books, you'll want someone who knows how to analyze the financials and make smart recommendations.
You want more than a data entry clerk.
- Be forthcoming about the services you will need and ask for suggestions that would make sense for your circumstances.
Consider payroll and payroll tax services, managing accounts payable and receivable and quarterly tax prep for the accountant.
- Confirm the fee schedule.
Depending on your location and the services requested, expect to pay $50-$100/hour.
- Confirm your candidate's availability.
Many bookkeepers have a full or part-time job, or a second business.
Make sure your candidate will be available when needed.
- Ask for references and follow-up.
All differences between the company's bank statement and its financial statements will be identified.
Moreover, you can view a copy of all checks written and verify that signatures are valid and authorized.
Some businesses hire a separate bookkeeper to perform reconciliations, so that an unbiased pair of eyes can review differentials (most of which will be normal, merely deposits and check payments in transit) and will be unafraid to follow-up on anything that looks questionable.
Best of luck and thanks for reading, Kim