Many business owners wear multiple hats, supervising business functions, managing inventory, handling finance management and accounting, etc. However, instead of spending your time on accounting, you can hire bookkeepers and invest your time working on your business’s core principles and strategies. Here, a long-term approach is required for the growth and survival of your company.
A bookkeeper can help you take your business to new heights with his accurate and comprehensive record-keeping skills. An expert bookkeeper makes things easier and precise in terms of calculation. However, not all bookkeepers have the same expertise to suit your needs. That is why the questions below are essential to ask from bookkeepers if you already have one or while hiring.
Questions you should ask from your bookkeepers or before hiring one
Evan Tarver, Co-founder, and CEO of SellingSignals
All business owners should ask about the chart of accounts. The number one thing a business owner should ask potential bookkeepers is: How well do you understand the chart of accounts?
The chart of accounts is the list of your transaction categories, such as expenses like travel and entertainment. If you set up your chart of accounts correctly, you’ll have easy-to-understand financial statements that you can use to make business decisions. If not, you risk financial reports that aren’t valuable tools for business intelligence.
Andrew Chornyy, Ideologist & CEO of Plerdy
Ask him to show you three ways you can use our bookkeeping system to help make business decisions?
*Your bookkeeping system should be a tool for making important business decisions. If your bookkeeper cannot show you three methods to use your bookkeeping system productively to benefit your business, you may need to find a new bookkeeper. Most of the small business bookkeeping systems, in my opinion, are underutilized. Many business owners, I believe, consider bookkeeping to be a means of preparing tax returns. Instead, consider your bookkeeping as a tool for growing your company.
Jason McMahon, Digital Strategist of Bambrick
Ask him if he thinks that he is doing a good job here? Ask him about the values he is adding? What can we expect from him in the future?
There is nothing wrong with saying someone the truth. This question may make your bookkeeper uncomfortable, but a smart bookkeeper will be able to respond wisely. You’ll learn how your bookkeeper sees themselves as contributing value to the company. You might also persuade them to set future goals for themselves. Hold them accountable if they make goals for themselves in the future. This is yet another excellent question to put to your bookkeeper to the challenges. These questions aren’t meant to deceive or make your bookkeeper feel uncomfortable.
Ben Rose, Co-founder & Personal Trainer at Trainer Academy
How can you help me clamp my cash flow?
It’s just as important to accurately estimate your company’s cash flow as it is to craft an effective mission statement and stick to it. It’s not easy to negotiate tedious, comprehensive flow estimates, but that’s why you have a bookkeeper. Your bookkeeper should be able to assist you in developing a well-organized cash flow model that allows you to alter your operations to help you survive gaps, improve receivables, and manage payables.
Jennifer Harder, Founder & CEO of Jennifer Harder Mortgage Brokers
As bookkeeping chores differ by industry, this is a crucial bookkeeper interview question to ask. Some small businesses can get away with hiring a trained bookkeeper with basic knowledge, while others, such as construction firms, law firms, and NGOs, require an industry-centric, skilled bookkeeper. However, don’t let your bookkeeping candidate’s lack of industrial experience prevent you from making an offer of employment. If they are otherwise a good fit for your company and have a passion for or interest in your industry, they may be the greatest candidate for the job. This, once again, boils down to the bookkeeper’s enthusiasm for their work. A bookkeeper that is passionate about your sector will go above and beyond to learn what they need to know to accomplish an amazing job for your company.
Sue Hirst, Co-founder, CFO on Call
I would be asking: What qualifications do you have? How much experience do you have? What type of businesses have you done bookkeeping for? What references can you provide on the quality of your work? If you’ve worked for small businesses, can you provide a reference from the accounting firm of those businesses?
Reasons for questions: Some bookkeepers haven’t learned their trade correctly. They’ve done a short course that provides a certificate. They’ve learned to do books on an app, which is not the same as learning proper old-fashioned ‘double-entry bookkeeping. If they don’t understand this, they will struggle to fix mistakes and work out why they occurred in the first place. Worse still, they may not even recognize errors and perpetuate them, costing the business money and wasted opportunities for growth funds.
I would want to see a reasonably wide range of experience, as opposed to just working in one or two places. This provides experience for working things out and fixing problems. Look for bookkeepers who’ve worked in businesses similar to yours, e.g., if you’re in a law firm, look for someone who’s worked in a service-based business previously. That way, they will have an understanding of the issues in such a business, i.e., time tracking, personnel productivity measurement, job profitability measurement, etc. This is an obvious one to gauge their level of ‘fit for the organization.
This is not such an obvious one, but the true quality of a bookkeeper’s work is felt by accounting firms, as they work with the results to finalize tax returns and financial statements. Business owners may not have a good understanding of the quality of work the way an accounting firm would.
Richard Mews, CEO, Sell with Richard
How can you assist me in expanding my business? Every business’s objective is to expand in some way. Perhaps you intend to establish a second site. Alternatively, you may choose to extend your offers. When speaking with your accountant, inquire about how they might assist your firm in growing.
Accountants are professionals in financial and tax matters. As a result, they understand which possibilities support the development and which ones you should avoid. Your accountant can monitor your financial growth and identify any bottlenecks in your firm (e.g., overspending on XYZ). Additionally, they may assist you in forecasting your cash flow so that you can prepare for future spending and possibilities.
Conclusion
The right bookkeeping services for your business are offered by a bookkeeper who has the skills and knowledge required to carry out the duties successfully, with expertise in your domain.
A bookkeeper should be passionate about his work, and this should reflect in his performance. It should be as per your organization’s work culture and in line with the goals and objectives for expansion.
So, these were the top bookkeeping questions you should ask your bookkeeper or while hiring one to make sure you have a qualified, knowledgeable, and credible professional with the capability to cater to your needs.
