As a business owner, there are many things that you can do to have a successful venture. You can put up a website to showcase your products and services, borrow capital to expand the business, or perhaps create partnerships with other businesses or advertise to grow your reach. However, many small businesses overlook the importance of proper bookkeeping.
Bookkeeping allows you to effectively manage, control and improve the financial aspects of your business. There are numerous bookkeeping services in the market but it is important to choose one that is reliable and competent.
There are some tasks that entrepreneurs should delegate to other team members and specialists. With regard to managing the books of the company, a trained professional from a reliable bookkeeping service is your best option. Before you hire a bookkeeping service to take care of recording the company’s financial transactions, here are some questions that you should ask:
1. What are the services that you offer?
Not all companies are the same, and this also applies to bookkeep service providers. There are bookkeeping firms that only provide statement preparations while others can provide budgeting, auditing, and tax preparation services. As a customer, you should also assess the kind of work that you need to be done so that the service provider can confirm whether or not they can meet your needs and requirements.
It is a big mistake to be unaware of the company’s financial standing. It’s similar to driving a car with blindfolds. A great bookkeeper manages and maintains the company books effectively and efficiently, allowing you to make sound financial decisions.
2. How long have you been involved in the bookkeeping industry?
One of the most important questions you should ask a bookkeeping service provider is related to their years of experience in the industry. Experienced bookkeepers are easier to work with because they have more experience working with clients, thus they are more efficient in what they do.
Most of the time, bookkeepers are not only trained to manage books of accounts—but they are also very knowledgeable about matters related to money and finances. If your business runs into a financial-related problem, a reliable bookkeeper immediately notifies you and gives expert advice on how to resolve it.
You can also request for references so that you can verify what their clients, past and present, have to say about their services. You can also check their website for testimonials and feedback.
A reputable bookkeeping service provider will not hesitate to show you their portfolio of clients.
3. What technology does your company use?
Bookkeeping services also differ based on the method they utilize to manage the finances of a company. While there are still firms that use the old methods in bookkeeping, many companies have started using technology in providing their services. It is advisable to choose a bookkeeping service provider that uses a software compatible with the one you use for business to facilitate easier data transfer.
Hiring bookkeeping services means a professional bookkeeper is in charge of balancing the books of the company, as well as keeping track of company checks, receivables, and income. A reliable bookkeeper can also monitor collection and billing activities, prepare the salaries of employees, and generate the company’s financial statements. Turning over these tasks to your bookkeeper eliminates stress and improves your productivity, especially if they use reliable software.
4. What are the fees associated with your services?
Price is always an important question—you don’t want to go beyond your allotted budget. There are bookkeeping services that charge per hour of work while others charge per task. Before working with a bookkeeping service provider, you should find out the current market rate so you have an idea about the rates and fees for bookkeeping jobs.
There’s no doubt that bookkeeping firms provide a necessary and valuable service to business owners. Unless you are an accountant by profession, it is best to leave bookkeeping to the people who can do it properly. Many business owners are guilty of wearing too many hats at work, thinking that they can save time and money, as well as minimize mistakes, by doing all the necessary tasks by themselves.
However, bookkeeping must be done by professionals who can do it faster and more efficiently. Hiring bookkeeping services let you focus on more important aspects of running the business. Before hiring a company that provides bookkeeping services, it is pertinent that you take the time to learn about their services, expertise, and reputation.