I was contacted by a prospect yesterday who has been having some trouble with their current bookkeeper not doing the work timely. I explained that we evaluate the books to see if there are any problems before we move forward. Upon review, I found lots of issues with the books that an expert would not make. There are so many issues that it may be more cost-effective to scrap what she has and start fresh as of January.
Because of the economy, many are taking jobs they may not be qualified to do. Some business owners who are hiring bookkeepers don’t know what questions to ask or what to look for when hiring someone to do this work. And even those who do may be misled by someone’s statements of experience. Just because someone has done data entry doesn’t mean they understand bookkeeping.
If you are looking for a bookkeeper, you need to make sure you are hiring an expert. We are not going to be the least expensive, so if you are shopping by price, you won’t pick us. However, think of the cost of having a poor set of books. You may not get all of the tax deductions you qualify for, or your income may be overstated. If your CPA has to make corrections to file the tax return, it is going to cost more as they charge much more an hour than we do. When you do realize the need for a good set of books, the cleanup (or creating a new file with accurate data) is going to cost more than having it done correctly in the first place.
When looking for a bookkeeper, the value of accurate information is much more important than the amount of money it costs you to get the work done. Please keep this in mind when making your decision.
If you or someone you know needs a bookkeeping expert, call us today.
– Candy
Hello Candy
I totally realise the value of having a good bookkeeper as I am currently working with a pretty bad one myself. Well I am sure he knows what he is doing but he’s just not keeping me in on it or answering my questions properly. So reading your article kind of made me wish I was closer to you so I could hire you.
As I am in Belgium however our tax system will look totally different so no luck with that.
——————-
Steffie
Life balance coach and energy healer
http://www.zhendria.com
Do you want to balance your life in 28 days?.
Join the challenge: http://www.zhendria.com/events.html
Steffie,
If you are unhappy with your current bookkeeper, contact other business owners you know and ask who they use and if they would recommend them. Or contact business associations who may be able to refer someone to you. Now that you know what isn’t working, you’ll have a better idea of what you need and can look for that. Most of my business comes through referrals, so asking those you know will probably help you find an amazing bookkeeper. Good luck!
Candy
Having a good bookkeeper is essential for your business. Not only you have to have proper accounting for the analysis of your results, proper financial reports help you to save money with other professionals. My wife is a CPA and she always comments how her clients have to pay her more because she has to correct their financial statements. A bookkeeper costs less than a CPA, a bookkeeper will save you time and money. Hire a bookkeeper!
Thanks Curtis for sharing your insights. Where is your wife operating from and who is her target market? I’m always looking for CPA’s to partner with as I don’t do income tax preparation and like to have people to refer to (especially if they have a niche that is the area my client is working in so that they are a great fit for each other).
Candy
I wholeheartedly agree. Someone once said, “If you think hiring an expert is expensive, try hiring an amateur.”
Crystal, thanks for sharing that quote. I’ve never heard it, but it’s true in many areas!
Candy
First of all, I just want to say, “Good for you.” This isn’t something we normally see on the Internet. I hope it serves you well.
Thank you Cathy. I appreciate your feedback.
Candy
Candy, as a creative person you don’t need to tell me that I need a bookkeeper – I already know! But I agree the temptation to DIY when it comes to something so important is probably not a good idea.
What is your perspective on the newer online bookkeeping apps? I’ve just started using FreshBooks and it seems pretty simple, even for someone like me.
– –
Best wishes!
Laurie
Hi Laurie,
Freshbooks is a great starting place for invoicing and time tracking purposes, however it is not meant to be your full accounting software. The information from Freshbooks can be put into your full accounting software (such as Quickbooks, Xero, Wave Accounting, etc). QuickBooks is the industry leader, and I prefer the desktop version to the online one because of the functionality, but others are making some headway as well. If you need to access your data online, the cloud based versions are best. If you are just starting out, look at Wave Accounting as it is currently free. I think they are wanting to get traction for their newer software, and they have (small) ads that appear at the top from vendors who want to target new business owners as customers (such as Staples, etc). Feel free to contact me if you have more questions.
Candy
I love that you say the value of the information is more important than what it costs. Very true!
Thank you Stacy for your comment. I appreciate it. It is true that the value of information needs to be considered when looking at the cost, but many times business owners don’t see the value of having this important information. It’s not until they really need it (perhaps when applying for a loan, analyzing their cash flow issues, etc) do they see why it’s so important to have accurate information from a bookkeeper who knows how to properly post transactions.
Candy
Very helpful and great suggestions. From my years working as a nonprofit executive, I would also say that you want to be sure your bookkeeping expert has expertise in your specific type of business or market.
Jane, you are absolutely correct that a bookkeeper needs to know the industry they are going to work with so that the accounting is done accurately. Non-profit is totally different than a for profit business. Great tip to share!
Candy
I totally agree, Candy. After owning my own business for more than 12 years now, I can say that having a professional book keeper is the most important thing you can have as a business owner.
Thank you for this informative post.
Steve Davis
Thanks for sharing your experience Steve. Unfortunately many times the bookkeeper is seen as an unnecessary expense (or one that is paid for begrudgingly). We are not revenue generators per se, but if the work is done properly, the reports can reveal a lot of information to help the owner run their business more profitably.
Candy
So true Candy! When looking to hire anyone for a service, you need to know exactly what you want to accomplish first and understand the value of what you want (or need).
Often when cost is the ONLY consideration when making a decision, a business owner will make a decision that in the long run will cost them more in money, time and energy. Not a place that any business owner wants to end up.
Thanks for sharing this information-
Sue Guiher, MS
Small Business Success Strategist
Thrive For Success, LLC
Get Your Free E-course
“Stop Trading Time for Money”
http://www.thriveforsuccess.com
Thanks for your feedback Sue. I think we’ve all had those moments as business owners where we look back at a decision and realize we made a mistake because we were trying to save a little money. I now try to always look at the value of what I’m getting for the cost of the service and evaluate it that way.
Candy
Good read! When I was looking for a bookkeeping I didn’t know what important questions to ask like what’s some of the reasons why I need a bookkeeping? How do I find out if their licensed or certified? How often do I need to communicate with a bookkeeper? and what is the benefit of hiring out instead of doing it myself.! Nice read!
Erica,
Many business owners don’t know what to ask, and unfortunately sometimes end up with bookkeepers who don’t really understand how to properly post transactions. I hope you were able to find a great bookkeeper even though you weren’t sure what questions to ask!
Candy
Hi,
You offer a great point about costing less in the long run- when your CPA does not have to make corrections.
Warmest,
Sheri
Dr. Sheri Kaye Hoff, PhD
Life, Executive and Small Biz Coach
http://lifecoachsheri.com/insight-biz-boosters-expo/
Thanks Sheri for sharing your thoughts! I appreciate it.
Candy
Candy,
You make a great point the least expensive is not always the best & a good set of books is vital for the success of a business.
Thank you Sharron for your feedback. I appreciate it!
Candy
I really need a bookkeeper. Thanks for the good info!
Thank you Michelle for your feedback. I appreciate it! Where are you located? Perhaps we can help you as well. I’d be happy to discuss with you to see if the services we offer are a good fit for your needs.
Candy Messer
Michelle,
I’m glad I could provide you with important information!
Candy
So important to work with people who are qualified either traditionally or through plenty of experience. Bookkeeping is an incredibly important part of business and it’s essential that it is done correctly.
Thanks for your comment Lianne-carla. It is so true that it’s important to work with experienced/educated bookkeepers so work is accurate. However, many business owners don’t look at bookkeeping in that way. It’s an expense they don’t really want to pay for and don’t always see the value of the service we provide.
Candy, having gone from my first one to another one, I could totally see the difference and the value in paying more and doing more research to find a good one!
Do you have a post on how to find a good one and what questions to ask to make sure you have found a good one? If so, it would be good to add a link to it on this post.
Lisa,
Good point about posting the questions. As this post was prior to the one with questions, I didn’t think about going back in to post the link. Here is the link for a post about finding an accountant. You can use the same questions for finding a bookkeeper. https://affordablebookkeepingandpayroll.com/?p=1222. Questions I included were:
What experience do you have with small businesses?
How familiar are you with my industry?
Do you handle my type of entity (sole proprietor, corporation, LLC, etc)?
What other services besides tax preparation do you offer (audit support, tax planning, forecasting, etc)?
What are your qualifications (CPA, Enrolled Agent, Registered Tax Preparer, etc)?
Thanks for your feedback. I really appreciate it!
Candy Messer
I wholeheartely agree with you. And, must say that having an EA as my bookkeeper, while more expensive has saved me thousands in taxes. This article will be of service to many people. Thanks so much for writing it.
Thank you Deanna for your comment. I’m glad you have an expert you are working with who you find is extremely valuable to you.
Thanks for sharing with us why anyone needs to hire a bookkeeping expert. It’s really a so informative article. I have learned a lot from your article Thank you for sharing with us.I hope it will be helpful for too many people that are searching for this topic.
Hi Steve, thanks for your comment. I appreciate the feedback. If there are any other topics you would find helpful, please let me know. Have a great day. Candy