Running a small business is hard work and I know because I’ve been there. Once the excitement of launch has passed, you’re left having to learn (very quickly) how to do sales, marketing, accounting and more. Wearing all these hats is the bit that nobody tells you about at the beginning of your business journey!
Let’s be honest, not all of us are natural number crunchers, so it makes sense to get extra support if this area is not your strong point. Looking after your numbers is a key step to securing the future of your business, and who wouldn’t want to do that?
Getting expert eyes on your numbers can skyrocket the potential of your business and help you spot those all-important growth opportunities. A good bookkeeper does so much more than just data entry and record keeping too. You can tap into their expertise and learn from them to benefit your business.
But how do you find the right one? Read on for my tips on finding your perfect number-ninja!
What to look for in a bookkeeper
When you’re ready to start looking for a bookkeeper there are some important things to look out for. Doing some thorough research and asking the right questions upfront will ensure you choose someone credible. You’re going to be trusting this person with the ongoing financial health of your business, so it’s not a decision you should take lightly.
- Professional credentials
Don’t be afraid to ask exactly what qualifications they have if this isn’t clear. A good bookkeeper will be completely transparent about their qualifications as it’s crucial for the credibility of their services.
- Relevant experience
What level of experience do they have and how much of it is relevant to your business type or the sector you work in? How long have they been working as a bookkeeper? Someone with fresh qualifications may be competent but won’t have the same level of broad business knowledge as a more established bookkeeper, and that could be important for more complex businesses.
- Professional body membership
Find out if they are a member of any professional bookkeeping bodies or associations. Being an active member of these organisations means they are kept up to date on the latest industry tools, trends, regulatory changes and best practice. All of which benefits your business.
- Insurance and legal requirements
This one is important. Making sure they have adequate professional insurance in place protects you and your business should anything go wrong on either side. They should also be paying the annual data protection fee to the Information Commissioners Office (ICO), as they’re handling your personal information.
- Supervision for money laundering
This is one you may not be aware of. By law all practising bookkeepers in the UK must have anti-money laundering supervision to comply with current government regulations. This supervision comes via HMRC or one of the main supervisory bodies such as The Institute of Certified Bookkeepers (ICB).
- Attention to detail
Evaluating attention to detail may seem difficult before you start working with a bookkeeper but look for clues upfront to get a feel for this. Is the info they’ve provided clear and complete, or have you had to follow up for answers? Or maybe they’ve provided more detail than you asked for, which would be a good sign!
- Trustworthiness and reliability
Can you get proof of their reliability and trustworthiness from client case studies or by speaking to existing clients? A good bookkeeper should be happy to provide examples and referrals from other clients as evidence of their dependability.
- Good fit
Even if all the above is ticked off the list and looks positive, it’s still important to consider whether this person is a good fit for you and your business. Think about your unique needs, what stage your business is at, what goals you have and what areas of knowledge or experience you lack that they could fill? Try to find someone who ticks more of your boxes, so you get maximum value from the relationship.
Questions to ask a bookkeeper before hiring them
Now you’ve done your research and made all the official checks it’s time to think more broadly about your chosen bookkeeper. Getting an idea of how they usually work with their clients, what their industry experience is and what they charge, will help seal your decision.
These questions will give you a better idea of their abilities and help you choose the right person first time!
What’s the scope of their bookkeeping work?
Clarify what’s included (and what’s not) upfront to work out who offers the most suitable services for you. Bookkeeping packages will differ, so make sure you’re comparing like for like too.
What’s their level of expertise?
More = more here! With more experience you can expect them to handle your business finances with ease and be full of handy tips to simplify your bookkeeping journey.
Do they know your industry well?
This one is a must! Choosing someone already familiar with your industry and its specific accounting regulations and requirements has its advantages and will save everyone time.
What are their delivery and response times?
Knowing their delivery and response times and how long you might have to wait for answers to queries helps you get the best from the relationship.
How do they keep your data protected and confidential?
You’ll be trusting this person with the inside view of your business, so you need to know exactly how they’ll manage your information. You’re looking for a detailed answer on this one, not just a ‘yes we do’.
How do they price their services?
Do they charge a fixed price or by the hour, and if it’s the latter how does that compare with others? Think about what payment structure suits you better based on how much help you think you need and what budget you need to stick to.
What happens when you start working with a new bookkeeper
When you start working with a bookkeeper there are several things that need to happen to make the business side of the relationship official and to enable the information flow between you. These are:
- Signing a contract so the terms of service and confidentiality are clear and agreed
- Due diligence checks on you and your business to meet UK money laundering regulations
- Setting up system access to any software programs and files you’ll both be using
- Enabling HMRC agent authorisations so your bookkeeper can submit on your behalf
- Professional clearance may be needed to request info from your previous accountant or bookkeeper
Once all these tasks are completed it’s worth thinking about the personal aspects of the relationship. There will be a settling in period to begin with as you get used to each other, and spending some extra time together in the early days may help speed up that process.
How to work effectively with your bookkeeper
It’s vital to set expectations on both sides, so that it’s clear from the outset what’s required from each party and how things should happen. Covering off these key details upfront will avoid any frustrations developing and help to build a good foundation for what will hopefully be a long-term relationship.
Communication
It’s helpful to be open about preferences on methods of communication (nobody likes an after-hours phone call or midnight email!) and to agree on a schedule for regular catch ups.
Respect deadlines
This one is a sure-fire way to avoid aggravation! Sticking to deadlines is crucial to avoid unnecessary pressure on either party to complete an activity at short notice. This applies in two ways, not doing things too late and not asking for things too late!
Provide info as requested
How information is provided to a bookkeeper really matters, and if it comes in the wrong format or document type it can create unnecessary extra work. Pay attention to not just what is being requested, but how it needs to be supplied.
Don’t be afraid to ask questions
Your new bookkeeper is there to offer advice and guidance so make the most of their expertise by asking them questions when you need to. You’re not expected to know the ins and outs of bookkeeping yourself – that’s why you’ve hired someone!
Be organised
Simplify your information gathering activities as much as possible, so it’s easy to provide receipts and paperwork to your bookkeeper regularly. There are lots of great tools and apps out there that make those tasks (that none of us love doing!) an absolute breeze – ask your bookkeeper for recommendations.
Working with Purple Orchid Bookkeeping
Over the years I’ve learned what it takes to run a successful business, both from my own point of view and my clients. This knowledge feeds into everything I do, enabling me to not just help you with the numbers, but also to make recommendations and offer advice to you on your business journey.
I explain things in a simple way (minus the jargon) and I’m licensed and regulated by the Institute of Certified Bookkeepers, so you’re in safe, experienced hands.
When you find the right bookkeeper can be a real turning point for your business and leveraging their expertise can improve your financial management skills and strategic decision-making, which has got to be a good thing for your business!
If you’d like to find out more, I’m always happy to have a chat with no obligation!
Book a free discovery call today: https://calendly.com/jq_bookkeeping/discovery-call