Starting a bookkeeping business 2016 how to#

Often, these references are happy clients. This sounds like a standard part of the vetting process, right? You gather three references and speak to each one about their experience with the bookkeeper. Ask for Three References and Be Specific About Which References You Want. In short, someone who is more entrepreneurial themselves will probably understand the high-growth, quickly changing demands of a small business.

Starting a bookkeeping business 2016 how to#

Generally, if you have someone with a business degree they have a greater understanding of how to run a business than (for example) tracking an asset. They don’t have a focus on the small business environment. Most accounting degree programs focus on principles for larger corporations. Now let me explain. While an accounting degree is admirable, a business administration degree might be more applicable to a small business. If a bookkeeper hasn’t handled billing for reimbursable expenses, you might not recoup them.ĭon’t Put Too Much Emphasis on an Accounting Degree. If a bookkeeper doesn’t understand trust accounting and makes an error, it can lead to a loss of client trust, fines or even criminal charges.

Worse, what if the bookkeeper makes a mistake because he or she isn’t familiar with your industry? You can face sizeable repercussions. And if they are billing you a flat rate, you’ll undoubtedly suffer in areas such as efficiency as they acquaint themselves with new concepts. That means more hours pile up expense-wise as the bookkeeper researches and undergoes training for your industry. If a bookkeeper hasn’t worked in your particular industry, they have a learning curve you will pay for. Most bookkeeping arrangements are based on hourly billing. They see a bookkeeper has 20 years of experience (which is great!) and think that the experience will cover their business adequately. This seems like a no-brainer, right? You’d be surprised at how often businesses will hire a bookkeeper without experience in their industry. Hire a Bookkeeper that Knows Your Industry. Here are five tips to help you find your best bookkeeping fit. Now that the decision is made, now is the time to suss out the details – namely how to find, interview and determine which bookkeeper is right for your business. You’ve decided it’s time to hire a bookkeeper.