How To Find The Perfect Bookkeeper
You're in a bit of a pickle, aren't you?
Your profits are increasing significantly.
And you're spending a lot more too.
I know you're struggling with the increase in paperwork...there's just too much to handle, isn't there?
And now you're facing another problem.
You know that this mess of transactions need to be taken care of, but you just can't do it.
Not personally, anyway.
You just have too much other stuff to do!
But now you're worried something important might slip through the cracks.
Being chased by the taxman is the last thing you want!
I mean, hello?
You didn't start your business to spend 99% of your day hunting down old invoices.
You started it so you can focus on your passion.
We had a client just like you once.
They constantly referred to their office as organized chaos.'
But we all know what that means ...messy.
For the life of me, they could never find a damn receipt.
It was ridiculous.
Their accounts were so atrocious, they actually managed to lose ||$||2535||$|| in deductibles.
One day, I had had enough..
I told them that they HAD to get a bookkeeper or it would end up killing their company.
I gave them a list of bookkeepers and guided them through the process of hiring, make it that week's priority.
A month later, they were thanking me.
Their bookkeeper had saved them so much money - and kept them on the right side of the law.
In fact, the bookkeeper I suggested was so good, their company is now worth more than ||$||1248323||$||
Now I want to help you, like I helped them.
I want to show you how to spot the ideal bookkeeper, the perfect person to make sense of all your incomings and outgoings.
So dust off that old shoebox of tea-stained receipts - that's a terrible hiding place by the way - and let me show you how you can find the perfect bookkeeper.
Well, I know I don't have to explain what part time means to you.
That's the part you do understand.
But you want to learn a little bit more about the role of a bookkeeper, don't you?
Well, to put it simply, they're the person that keeps a record of all your financial interactions.
In short, how much you've earned and what you've been spending.
But why do I only need a part time one? I hear you ask.
Well, generally speaking - though there are some exceptions to this - a company with less than 30 employees or profits below ||$||1248323||$|| won't need a full time bookkeeper on hand.
This is purely because they don't provide enough transactions to warrant the need for full time help..
After all, why would you want to pay someone to work full time if you're only making four purchases a week?
It's not a good use of your money or their time!
You know, I've actually lost track of how many times I've had to say this to clients;
A bookkeeper and an accountant are not the same thing.
Yes, they both work in finance.
And yes, occasionally an accountancy firm may offer a bookkeeping service, and vice versa.
But their job roles are completely different
What's a good way to explain this?
Let's say that you're a marathon runner.
Your accountant would be your running coach, and your bookkeeper would be your Fitbit.
Your Fitbit' keeps a record of the time it takes you to complete the race, but your coach' helps you understand why you got that time and how to improve it.
Do you see the difference now?
So, do you actually need one?
Well, if any of these points sound like you, yes.
Chasing the bin man at 5 in the morning because you think you may have dropped some documents in the trash is no one's idea of fun.
But, honestly, that's what you get for using an old cereal box as a filing system.
(Okay, I may or may not be speaking from experience - don't judge me!)
Why did you start your business?
Because it definitely wasn't to do this.
You started it because you had an idea you believed in.
And you were determined and passionate to make that idea a success.
But now you don't have the time to give your company the attention it deserves
Not when you're spending the day sitting on an old calculator, trying to figure out why you've got $1.31 less than your meant to in your bank.
If you had a bookkeeper, you could get back to focusing on your dreams instead!
We all had that guy' in school, didn't we?
You know the one I mean.
The one who, no matter what you were talking about, would be an expert on it.
I heard scientists have found a cure for the common cold
Oh yes, my father - inventor of ibuprofen - took me to the lab last month and I actually discovered the final ingredient of the cure myself.
Yeah, don't be that guy.
You're fooling no one.
There's absolutely no shame in not understanding bookkeeping - it's an extremely difficult subject.
But it is obvious if you don't, and will show in your accounts.
Plus, messing with things you don't understand leads to trouble.
If you end up doing something wrong, you could be fined or chased by the taxman!
Forgetting a couple of payments doesn't seem like a big deal.
After all, you're obviously going to rectify the issue as soon as you notice.
But, what if you notice too late.
Let's say, your business needs funding.
All is going well, the funder is willing to help.
You're a few signatures away from signing a deal with them, when they spot something.
You're missing ||$||1500||$||.
Well, when you're as busy as you are, you haven't got the time to take notice of every incoming transaction.
You've had a few clients slip through the cracks, and make their payments late.
Now your business seems unreliable, and the funder won't want anything to do with you.
It's stressful to keep missing these things, but adding extra duties onto your already-massive workload would take such a toll on your day.
Well, a bookkeeper can chase up missing payments and ensure you always have a positive cash flow - restoring trust in your business!
When has more money ever been an issue?
That's right, never.
Yes, you would have the added expense of paying for the bookkeeping service.
But just think about how much money you'd save by;
- Getting more time to work on securing clients/customers.
- Putting a stop to missed payments.
- Not facing the wrath of the tax man.
Doesn't seem like such an expense now, does it?
So they work on your accounts, but they're not an accountant?
Well, what do they actually do?
Let me show you
|What Do They Do?||What Does This Mean?|
Reconciling Bank Statements
The process of comparing the banks record of activity of your account with your own!
Recording Accounts Payable & Accounts Receivable
This action helps you spot any differences between the two accounts, so you can easily rectify any discrepancies.
This is a way to record the payments you owe other companies, and what other companies owe you.
Posting/Updating Journal Entries
Well, Bridget Jones, this is just a diary - but for payments.
It's a way to document each and every transaction made both to and from your company.
Every payment would be documented with a description of the sum, the amount, the date and a unique reference number.
Performing Month-end Closings
The fancy name your bookkeeper gives to the process of ensuring all your accounts are accurate at the end of each month.
Tracking Fixed Assets & Preparing Depreciation Schedules
This is the process of tracking the location, condition, quantity and depreciation status of a physical product.
Preparing The Trial Balance
The best way to check that your bookkeeper can count.
Your overall balance would be seperated into a double-entry system (credit and debit) to ensure when added together, they equal the same amount as the original number.
So you think that you are your perfect bookkeeper then?
I hate to break it to you, but that's very unlikely.
Not unless you were a trained bookkeeper before you started your business anyway.
If you are thinking about doing the books yourself , take these 3 things into account.
Honestly, do you have any hours left in the day to spare?
I doubt it.
You're already spending time doing admin, sourcing clients, replying to customers etc - do you really need another job on your pile?
I definitely recommend outsourcing this task to someone else, and spending your time on your businesses growth instead.
Okay, let's say you do have the time to manage the books yourself.
That doesn't mean you have the skill to do it.
Clients are often mistaken in thinking this is a job that everyone can do.
But, it goes beyond filing receipts and checking your bank statement.
You have to be trained in their software, methodology, legal requirements and terminology.
It's not a job for an amateur.
Not when the consequences of doing it wrong could result in serious fines or the loss of your company.
I've said it before, and I'll say it again.
Do you want to do your own accounts?
Unless the business you've started is a bookkeeping service, I highly doubt it.
You do what you love, they'll do the rest.
The qualities of the perfect bookkeeper go beyond being organised and good at maths.
In fact, if I were seeking one right now, those things wouldn't even be on the top of my list.
Actually, take a look at my list of the top 5 bookkeeper qualities below!
|Qualities They Should Have||What Does This Mean?|
Experienced & Qualified
This isn't a job anyone off the street can just walk into.
It requires an intense training period, which is only strengthened by years of experience.
If they're about to start a bookkeeping course, it's best to steer clear until they're qualified.
Familiar With The Law
It's scarily easy to find yourself on the wrong side of the law.
Especially when money is involved.
A bookkeeper should know more about the law than their own mother.
If they can't even tell you what a deductible is, run.
Run very far away.
Knowledge Of Appropriate Software
Balancing your books requires an array of software, and it's not easy to use at all.
Trust me, I've tried it.
One teeny, tiny mistake could lose you thousands.
If a bookkeeper isn't familiar with the software they're meant to be using, they could end up costing you a lot more than their weekly fee.
Understand Your Business
You don't want a bookkeeper who doesn't take the time out of the day to learn more about your business.
If they're disinterested in your company, it's highly unlikely they'd be bothered to show a proper interest in your accounts.
Go for someone who lives and breathes what you're selling!
Strong Communication Skills
A bookkeeper needs to do a lot of talking.
They could be explaining jargon to you, chasing up your clients for missed payments or simply need to ask you for a particular receipt.
Either way, they need to be able to convey what they need in a clear and concise manner, to prevent mistakes.
So, you know the top qualities your perfect bookkeeper requires.
But not where to find one.
Well, not to worry.
You can find one right here!
Yes, you could find an agency online or ask your existing accountant if they offer bookkeeping services, but these are usually a rather expensive route to take.
Here at QuoteGrab, we ensure high quality at a fair price.
We know these services are essential to the day-to-day running of your business, and we refuse to scrimp on excellence.
Plus, we actually use four providers, so the chances of you finding the perfect person for your company soar when you request a quote from us!
Just because you're outsourcing someone to help with your accounts, it doesn't mean you can't make their job a little easier.
Take a look at some things you can do to get the most out of your bookkeeping service:
|Top Tips||What Does This Mean?|
For The Love Of God, Organise
If you have a stack of receipts under your bed, invoices in your mums house and your credit card bill in the bin - my god, you're a bookkeepers worst nightmare.
If you don't file your transactions properly, your poor bookkeeper will have to do it for you.
And it would be a tough job as, the messier you are, the higher the chance of missing information and big mistakes.
You're Not A Celeb, Don't Avoid Questions
No one likes being asked questions about money but, well, that's a bookkeepers jobs.
We've had plenty of clients complain about their bookkeeper quizzing them, but they're not doing it with ill-intent.
They're doing it to get a better understanding of your business's financial situation!
Stop Leaving Things To The Last Minute
If your bookkeeper tells you they need a copy of today's transactions before the end of the week, that doesn't mean 11:59pm on Sunday night.
You're forcing additional stress on them to get your accounts done in time.
It's not very professional and, again, leaves more room for mistakes.
There we have it.
I've given you all the tools to find the perfect person to take care of the books for your business.
But, to save you the hours of time you'd have to spend researching bookkeeping companies yourself, let us do it for you.
Enquire today and get a quote from one of our four trusted suppliers.