Every type of business, no matter how small, will need to deal with numbers. This includes keeping track of every transaction – from sales, expenses, salary payments to maintain stable and financially healthy operations.
Large-scale enterprises have a team of accountants to help keep the company stay on top of their finances to keep the business running smoothly. On the other hand, bookkeepers are used in all kinds of companies for keeping reports on the bulk of day-to-day work.
Bookkeepers are the first line of a company’s finance team. They handle anything from maintaining a chart of accounts, completing monthly journals, and running easy-to-absorb management reports, to managing expenses like accounts payable, receivables, payroll, and inventory.
Hiring a bookkeeper is crucial for any up-and-coming business as they are responsible for keeping an accurate and up-to-date record of all financial transactions.
Beyond having a transparent overview, it is also essential when preparing for annual tax reports. For that reason, it’s vital to outsource the right bookkeeper for your business.
With the number of choices available in any part of the world, searching for the right one can be daunting. Fortunately, we’ve made a breakdown on how you can effectively find a qualified bookkeeper who can crunch your numbers for you:
Tip #1: Look for Certifications or Memberships
A bookkeeper is part of the key to running a successful business, which is why it’s vital to hire someone who possesses up-to-date skills and knowledge. Proof of this professionalism and industry-standard capabilities can be recognized through certifications from the Institute of Professional Bookkeepers of Canada (IPBC) or any qualified university or college program across Canada.
Professional memberships, on the other hand, are bookkeepers working under an established organization. Hiring a bookkeeper with either a certification or an association is essential as it reflects their professional status that ensures quality work and commitment.
Tip #2: Find Someone with Knowledge and Experience in Your Line of Business
Bookkeeping practices vary depending on the industry, so it’s crucial to hire someone who has the skills needed for your line of work. For instance, the relevance of a candidate’s experience will determine the effectiveness of their skills with your field of expertise. To that end, a bookkeeper that has worked with fashion retailers may not offer the same knowledge needed for an air-conditioning company. These questions below may help you assess whether or not your prospect will fit the bill for your company’s needs:
- What is your previous bookkeeping experience?
- What were your primary responsibilities?
- What kinds of financial reports did you prepare?
- What types of accounting systems did you use?
Tip #3: Review a Bookkeeper’s Level of Expertise
A good bookkeeper can help a business keep daily records, but a great one will know how to provide solutions and make order out of chaos. While the skills needed are dependent on the industry, the right bookkeeper should have a solid grip on the following:
- Reconciling bank transactions
- Raising sales invoices and following up on debtors
- Ensuring correct tax treatment and coding of transactions
- Lodging sales tax, GST, or VAT
- Preparing reports on Profit and Loss or Balance Sheet
- Interpreting reports
- Making a budget
- Preparing a cash-flow forecast
- Entering supplier bills
- Handling payrolls
We understand running a small business is complicated. Your financials shouldn’t be. Take the guesswork out of the accounting and let us help you build your blueprint for success.
Contact us today for your free assessment to find out how Blueprint Accounting can support your business.