Choosing the right bookkeeper is one of the most critical staffing decisions you'll make for your small business. A great bookkeeper doesn't just manage the numbers; they maintain accurate financial records, manage cash flow, and ensure you're compliant with all accounting and tax rules. Finding that person, however, can be a challenge.
Whether you're hiring for the first time or replacing a trusted team member, the process requires careful thought. To help you find a candidate who can truly support your business's growth, here are the key factors to consider during your search.
When you start reviewing résumés, it's natural to look at a candidate's educational background. Some bookkeepers will have degrees in accounting or finance, while others might have specialized certifications. While advanced training shows a commitment to their profession, don't let it be the only thing you consider.
Real-world experience is just as important. A skilled small business bookkeeper with several years of experience, especially in an industry similar to yours, can bring invaluable insights. They should be familiar with U.S. Generally Accepted Accounting Principles (GAAP) and relevant tax laws. Since these rules are constantly changing, look for someone who demonstrates a commitment to staying current.
Modern bookkeeping is driven by technology. It's essential to ask candidates about their experience with your specific accounting software, as well as related tools like payroll systems, tax software, and spreadsheet programs. An experienced bookkeeper might even recommend new software that could improve your efficiency. Their ability to adapt to new technology is a significant asset.
Compliance is another critical area. Your bookkeeper will likely handle tasks like payroll filings, sales tax reporting, and preparing Form 1099s. Even if a CPA firm files your final tax returns, your bookkeeper's understanding of the underlying rules ensures accuracy. A candidate who has managed these responsibilities before will need far less supervision and training.
A top-tier bookkeeper does more than just record transactions—they help streamline your entire financial operation. Ask candidates about their experience with month-end closings, preparing financial statements, and reconciling accounts. Their ability to support audits and minimize workflow bottlenecks is a sign of a strong operator.
Some bookkeepers can also take on higher-level financial tasks, like preparing budgets and forecasts. These skills are incredibly valuable, as they can free you up to focus on other areas of the business and provide a sounding board for major decisions. Some candidates may even have training in forensic accounting, which can help you tighten internal controls and reduce the risk of fraud.
Technical skills are only one piece of the puzzle. A bookkeeper handles sensitive financial data, so trustworthiness, confidentiality, and sound judgment are non-negotiable.
Since they will interact with vendors, employees, and your external accounting firm, strong communication and collaboration skills are also essential. Can the candidate explain complex financial concepts in simple terms? Are they organized and proactive? To gauge their problem-solving skills, present them with a recent accounting challenge your business faced and ask how they would handle it. Their approach can be just as revealing as their résumé.
Hiring a small business bookkeeper is a significant investment. Taking a thoughtful, strategic approach to the hiring process can save you from costly turnover and reporting errors down the road. The ideal candidate won't just balance the books; they'll be a partner who is ready to grow with your company.
If you need guidance during your search or temporary bookkeeping support, our team is here to help. Contact us to ensure your finances are in expert hands.