Rachel Frishe owns a virtual assistance firm, Virtual Technique, that specializes in bookkeeping. She offered her wisdom to help those hiring a bookkeeper understand the importance and usefulness of having the right person capture your daily and monthly transactions.
Tip #1: Know the difference between an accountant and a bookkeeper.
Frishe has found that many of her clients don’t know the difference between a bookkeeper and an accountant. They, therefore, do not recognize how important their differences are.
The key difference Frishe said is that the bookkeeper prepares the records for internal review and management, while the accountant is the one who does the internal review before sending it for external review. The accountant prepares the books for said external review, such as tax returns and audited financial statements.
Tip #2: Qualifications to look for.
Frishe advises you to keep the following considerations in mind when hiring a bookkeeper: Educational background, work history, and software experience. You might also want to talk to several accountants your prospective bookkeeper has worked with to evaluate the quality of their work from an expert’s perspective.
Tip #4: Setting expectations and work standards.
Another important focus the bookkeeper should have is helping you keep your financial records organized and secure. Frishe tells us that good bookkeepers have standards and will work with you to create a process of receiving timely and accurate information for secure storage. Frishe warns that if the bookkeeper isn’t asking essential questions about receipt storage, obtaining bank statements, or payroll processes, it’s time to get a new bookkeeper.