Running a small business is a continuous tug of war between time, money and the long list of tasks that need to get done. Timely and accurate bookkeeping can be critical to a business’ compliance, cash flow and decision making ability, however, it is a constant and time consuming task that is often the first aspect of the business to be outsourced.  Choosing the right bookkeeper for your business can be quite a complex processes that can have long-reaching consequences for a business in the short and long term.

We spoke with Chrisna du Preez (bookkeeper from Catalyst Cloud Accounting) to find out what a small business should look for in a bookkeeper, both during the initial search and after they have been engaged.

Finding a bookkeeper

During the initial phase of searching for a bookkeeper, Chrisna recommends looking for the following characteristics:

• Qualifications:
  • A Certificate IV in bookkeeping (or equivalent)
  • Registered BAS Agent (if you require that service)
• The types of services they provide:
  • Bookkeeping
  • Prepare management accounts
  • Prepare and lodge BAS (if a BAS Agent)
• A minimum of 3 years’ experience as a full-time bookkeeper.
• A reasonable knowledge of tax.

You can generally ascertain the above through a bookkeeper’s online presence, such as their website and LinkedIn profile, and businesses or institutions they are affiliated with.

Initial meeting with the bookkeeper

Meeting with the bookkeeper face to face allows a personal evaluation and first impression to be established. This can assist you in determining how you think this person will work and interact with you to perform your bookkeeping needs in an effective and efficient way.  Chrisna outlines the following as important things to consider from this first meeting:

• Initial Impression:
  • Do they appear organised?
  • Are they well presented?
  • Are they punctual?
• How the bookkeeper interacts during the meeting:
  • Do they have an easily understandable set of services and options they can provide?
  • Can they answer your questions directly, concisely and confidently?
  • Do they ask you appropriate questions? (This shows they are interested in your business and understand that all businesses are different and require different interactions and services).
  • Do they show an ability and desire to understand your business’ functions and processes so that they can provide their services in an efficient manner?
  • Do they demonstrate knowledge of your industry?
  • Are they adaptable to different software solutions?
  • Do they embrace new and effective technologies, or do they seem adverse to change?

Pricing

It is quite common for small business owners to want to find the cheapest bookkeeping option, however this is not the best strategy and can often result in messy books, extra time required to produce year-end financials and a lack of quality information on which to base business decisions during the year.

The following are issues to consider in relation to pricing:

• Pricing is often directly related to the quality of the service being provided. When it comes to bookkeeping, more often than not, you get what you pay for.
• A quality bookkeeper is flexible with pricing and with the options and types of services they can provide you.
• Do they charge based on the services provided or an hourly rate? Hourly rates are not always cheaper, but may be more appropriate if your business activity fluctuates significantly.
• Do they charge for communication time such as emails and phone calls?

Remember, if your bookkeeper charges less, but more time is required by your accountant to complete your year-end financials, you are not actually saving money.

After engaging a bookkeeper

Constant evaluation of your bookkeeper is required to ensure you are getting the best “bang for your buck”. Up until this point you have evaluated the bookkeeper based on all aspects except the actual service provided.

Once you have hired a bookkeeper, the following are things to consider to ensure a quality service is being provided:

• Does the bookkeeper communicate effectively with you?
• Does the bookkeeper communicate effectively with your accountant?
• Are your books kept consistently up to date?
• Are the transactions entered by your bookkeeper detailed and do they contain accurate descriptions?
• Do you understand all the entries made by your bookkeeper?
• Does your bookkeeper add value to your ability to make decisions using accurate and relevant financial information?
• Are your GST reports accurate? (i.e. correct GST codes used)
• Are they charging you for a reasonable amount of time spent on your books?

By following the steps above, you can ensure that you hire a bookkeeper whose service can add value to your business, aid your decision making process and give you peace of mind that your accounts are being accurately represented.