Own a small business and want to hire bookkeeping service providers who would not dig too deep in your bank account and still provide worthwhile bookkeeping services? Online bookkeeping services can come in the following ways:
- Bookkeeping through online software
- Virtual services providers
- Outsourced bookkeeping services providers
When talking about virtual bookkeeping, how would one know that they have found the right bookkeeper to hire? Here is what you should ask and know when trying to find a certified bookkeeper.
Certifications
Not just for the ease of mind and to be sure you are in the right hands, some states also have obligations to have bookkeepers with certain qualifications. A licensed and certified bookkeeper is always the best and safe bet. Unlicensed bookkeepers might mean lower costs but they also mean higher risks. While this may save you some money in the short term, you might be in to pay hefty in the long run due to lesser or unsatisfactory due diligence.
If they have worked in your industry
Any bookkeeping service providers might have a lot of experience dealing with clients but it is important to know if they have dealt with clients similar to you or the clients similar to the industry you operate in. This will give you an understanding if bookkeeper can handle your books properly or not. Prior industry experience is more important than having experience in the industry of bookkeeping as a whole.
Past client reviews
Reviews are extremely important. Reviews are a representation of how the bookkeeping services providers might have dealt their past clientele and how can you expect to be dealt by them. Client reviews that are genuine and positive would be a positive indicator and might mean that you should move forward with the bookkeeper. Long standing and recurring client reviews might mean that you have come across just the right bookkeeper.
Communication
Your certified bookkeeper should be the best communicator. If you guys have decided to communicate daily, weekly or even over weekends with the decided deliverables, those commitments must be met and honored and this would ensure that your bookkeeper is extremely honest with you and understands your dynamics. In order to work as a team and work seamlessly, this becomes extremely important.
Price
You would know the financial situation of your small business bookkeeping and understand how much can you spend on accounting and bookkeeping services. It is pertinent to mention that hiring a freelancer would cost you less than hiring a full-fledged accounting firm. However, the scope of small business bookkeeping transactions you have and the laws in your state would help you understand which ones you’d require. That being said, it has become a culture to employ remote bookkeepers as opposed to hiring someone in-house.
Frequently asked Questions
What is a virtual accounting and bookkeeping services?
Virtual accounting, also known as cloud accounting, is a situation where an accountant or accountant works with his customer remotely. This is possible thanks to accounting software that allows you and your accountant to share the account. With a shared account, your accountant can record your financial transactions, check and update your bank statements, reconcile your accounts, and perform other important accounting functions without having to meet you in person.
What is the easiest way to start bookkeeping for a small business?
To get started with accounting, the first step is to become familiar with accounting terms and phrases. There are also workshops that you can attend.
The next step is to choose which posting method (single posting or double posting) you want to use. Once you know this, decide how you want to keep your records. Here are the three most popular options:
- Spreadsheets: This is a good choice when your business is in the early stages. You can use programs like Excel or Google Sheets.
- General Ledger: You can purchase hardcover diaries or general ledger sheets that provide an effective way to keep track of simple accounting records.
- Bookkeeping software: You can use a cloud-hosted accounting application or computer software to help you record your company’s transactions.
What if I need my bookkeeper to do something that is not a part of our initial understanding?
It is important that an agreement should be drawn up as mostly all bookkeeping jobs are done on an agreed hourly rate, thus, the same rate shall apply and the scope of work might be defined to ensure that the bookkeeper and we, as businesses are clear about what needs to be done, how that needs to be done and when it needs to be done.
It is important to have a bookkeeper who is a CPA?
A licensed bookkeeper is extremely important, however, how important is a certified bookkeeper will depend on the scope of work your business performs and the regulations your state follows. If any state in Canada requires a certified bookkeeper, then you will also need to employ a certified bookkeeper who is a CPA.
Which software are usually used by bookkeepers?
You should start by asking them what their application ecosystem is. What applications do they use to provide their services? The bookkeeper should put in place the following general structure covered by the above applications in order to:
- General Ledger and General Ledger applications (QuickBooks Online).
- Remote web conferencing application (Zoom).
- Project Management (Smart sheet).
- Communication (Slack.)
- File and document management (G Suite).
Some applications may vary, but if your potential virtual accounting service can cover these five bases, chances are you’re covered.
Bottom line
Regardless of how unnecessary you think book writing services might be, you would realize that they help when filing taxes and make the overall accounting and financial management for any business very easy. Small business bookkeeping services can be employed remotely and would not cost as much as compared to the benefits they render. Talk to Web Tax Online today to get one of its kind remote accounting and bookkeeping services.