8 Questions to Ask Your Bookkeeper

8 Questions You Should Ask Your Bookkeeper

You’ve decided it’s time to bring a bookkeeper on board. As your business has been expanding, you need to dedicate your focus, time, and energy to further growing your enterprise and concentrating on the areas you are passionate about. A bookkeeper can assist you in achieving these objectives by allowing you to concentrate on your business strategies while enhancing the precision of your financial data. However, not all bookkeepers will be the ideal match for your business, which is why we advise against hastily hiring one without asking some crucial questions to determine if they are the right fit for you and your business. So, where should you start? We’ve put together a list of considerations to guide you in this next phase of your business journey. 

1. What qualifications do they have?

Each bookkeeper possesses varying levels of expertise and/or certifications. These certifications demonstrate their dedication to specializing in their chosen field and their commitment to ongoing education. It is important to seek certifications that align with your company's requirements, ensuring you hire someone capable of managing the more complex aspects of your business. Do they hold a degree? Are they certified, such as a CPA or CMA, or are they certified in the software they use, like being a QuickBooks Pro Advisor?

2. How do they collaborate with CPAs?

There is a common misconception that all bookkeepers are CPAs. Bookkeepers manage financial transactions and daily business operations, while CPAs, or Certified Public Accountants, compile financial data to prepare and file taxes. Although some CPAs do bookkeeping, not all bookkeepers are CPAs. Bookkeepers and CPAs often collaborate, and it's important to understand how they communicate with CPAs. They might have a preferred CPA they regularly work with, or they may be open to working with your current CPA.

3. How much experience do they have?

Consider how familiar they are with your industry, and whether they have current or past experience with it. A skilled bookkeeper can process all the information accurately and in a timely manner. You also want someone who is able to go back, review, and recognize errors (if any) and fix them. This ensures you’re not left with a mess to clean up.

4. What do they do when they find an error?

We would all like a perfect world where errors do not happen; however, mistakes are bound to happen, whether they are the customer’s fault or the bookkeeper's error. It’s better to be prepared for when this inevitably happens and how the situation is handled is important. Does the bookkeeper handle it right away? There are many right answers here; the definite wrong answer would be if the bookkeeper refuses to acknowledge it.

5. How do they communicate with their clients?

Effective communication is vital between you and your bookkeeper. Since you are busy as a business owner and your time is valuable, you will want to ask what their preference is for communication and also set the expectation of what communication you need. It is likely, especially at the very beginning of the engagement, that you will hear from your bookkeeper regularly as they process your day-to-day transactions. A couple of questions to ask are: what is their typical method of communication (e.g., phone calls or emails), and what are their typical response times? Effective communication between you and your bookkeeper will save both time and money.

6. What is the scope of their bookkeeping work?

While this may seem like a simple question, in the bookkeeping profession, there can be a large variation in the services that an individual offers or specializes in. It is important to consider all the tasks you want done, and communicate your expectations. Some examples of tasks are:

• Reconciliations of bank/credit card accounts

• Creating invoices and following up on accounts receivables

• Entering in vendor bills and paying suppliers

• Verifying that all transactions are coded correctly for tax purposes

• Preparing all financial reports

• Interpreting financial reports

• Creating budgets

7. What are their Rates?

Cost is going to be a factor for any business owner. Some bookkeepers work hourly, while others have packaged plans. If you have a strict budget it is important to filter out candidates that do not fit into your budgeted amount.

8. How do they protect their clients and their data?

Most bookkeepers understand that sharing the financial information of your business puts business owners in a vulnerable state. You are trusting your bookkeeper with vital information about your business and trusting that they are keeping it safe. Ask them about their process for keeping your data secure. If they have a team of individuals, do they have internal controls? If you are using Quickbooks Desktop how are they storing your backups, if you (or your bookkeeper) pay for a Subscription to Quickbooks Online who owns/controls your data?

In conclusion, finding the right bookkeeper for your business can be difficult, but asking the right questions can help ensure you find the perfect match. You will want someone who possesses technical knowledge and is an expert in their industry, and who, if they don’t have experience in your industry, is willing to learn. You will want someone who’s passionate about what they do, and aligns with your goals and objectives of your company.