Hiring a Bookkeeper: A Small Business Guide to Finding the Right Fit

Hiring a bookkeeper is an important decision.

Thinking about hiring a bookkeeper as an employee in your business? Running a small business means juggling countless responsibilities, from marketing and operations to managing your finances. If bookkeeping feels overwhelming, hiring a bookkeeper can free up your time and reduce stress. But how do you choose the right one for your business? This guide walks you through everything you need to know about hiring a bookkeeper, from understanding what bookkeepers do to finding a qualified professional that fits your needs and budget. Well also go over the pros and cons of hiring a bookkeeper.

A bookkeeper handles the day-to-day financial tasks that keep your business running smoothly. These include:

Hiring a Bookkeeper: What Does a Bookeeper Do?

Before hiring a bookkeeper, the first step is to consider what a bookkeeper does. A bookkeeper handles the day-to-day financial tasks that keep your business running smoothly. These include:

Recording transactions (sales, expenses, payroll, etc.)
Reconciling bank statements
Managing accounts payable and receivable
Generating financial reports like profit and loss statements
Maintaining accurate financial records

If your business needs more advanced bookkeeping support, you might consider a full charge bookkeeper. Unlike traditional bookkeepers, full charge bookkeepers handle additional responsibilities, such as preparing monthly financial statements and managing payroll taxes.

By ensuring your books are in order, bookkeepers provide you with the financial clarity you need to make informed decisions.

Signs Your Business Should Consider Hiring a Bookeeper

Not sure if it’s time to hire a bookkeeper? Here are some signs:

You spend more time on bookkeeping than running your business.
You’re unsure about your financial health.
Tax season is always stressful and confusing.
Your records are disorganized or incomplete.

If any of these resonate, it just might be time to consider hiring a bookkeeper. However, before jumping to that conclusion, it pays to consider some other alternatives.

Sometimes, hiring a bookkeeper can be a good option.

How to Choose the Right Bookkeeper

Assuming that you’ve decided that hiring a bookkeeper is a good idea, selecting the right bookkeeper is crucial. Here’s what to look for:

Qualifications and Experience
When hiring a bookkeeper, look for bookkeepers with relevant experience in your industry. Certification programs, such as QuickBooks ProAdvisor or NACPB, are a plus. If your business requires in-depth financial oversight, ensure they understand a full charge bookeeper’s duties and responsibilitie.
Software Expertise
If you use specific bookkeeping software, like QuickBooks or Xero, ensure your bookkeeper is proficient in it. (See: Bookkeeping Software for Small Business)
Communication Skills
Your bookkeeper should explain financial concepts in simple terms and keep you updated regularly.
References and Reviews
Ask for references or check online reviews to gauge the bookkeeper’s reliability and professionalism.
Budget and Services Offered
Compare fees and ensure their services align with your needs. Some bookkeepers may offer additional support, like payroll management or tax preparation.

Where to Find a Bookkeeper for Hire

Here are some ways to find a qualified bookkeeper:

Online Platforms: Career Boards like Indeed or ZipRecruiter have listings of bookkeepers seeking employment. Websites like Upwork and Fiverr feature freelance bookkeepers with reviews.
Professional Associations: Organizations like the American Institute of Professional Bookkeepers (AIPB) maintain directories.
Referrals: Ask fellow small business owners for recommendations.
Local Networking Events: Meet bookkeepers in your area at business meetups.

In-House vs. Outsourced Bookkeepers
Should you hire an in-house bookkeeper or outsource the work? Consider these factors carefully before actually hiring a bookkeeper:

In-House Bookkeeper	Outsourced Bookkeeper
Works onsite in your office	Works remotely or for a bookkeeping firm
Better for larger businesses with constant financial activity	Ideal for small businesses with fewer transactions
May cost more due to salary and benefits	Often more affordable
Immediate access for questions or tasks	Flexible services tailored to your needs

For more on outsourcing, visit Outsourced Bookkeeping.

Hiring a bookkeeper on a seasonal basis.

Questions to Ask During the Hiring Process

Before hiring a bookkeeper, ask these questions:

What industries have you worked in?
Are you familiar with my preferred bookkeeping software?
How often will we communicate, and how?
Can you provide references?
What is your fee structure?

Full Charge Bookkeeper Job Description

If your small business needs a higher level of financial management, hiring a full charge bookkeeper might be the solution. These professionals take on more comprehensive tasks, including preparing and analyzing financial reports, handling regulatory compliance, and working closely with accountants during tax season. (Link to Tier 4: Full Charge Bookkeeper Job Description).

Common Mistakes to Avoid When Hiring a Bookkeeper

Choosing Based on Price Alone: Low fees can sometimes mean lower quality.

Skipping the Interview: A face-to-face or video meeting helps you assess their communication skills and professionalism.
Failing to Define Expectations: Clearly outline tasks, deadlines, and reporting methods upfront.

FAQs About Hiring a Bookkeeper

How much does it cost to hire a bookkeeper (fulltime)?

Bookkeeping rates vary greatly based on location and the bookkeeper’s experience levels. Hourly fees typically range from $20 to $40 per hour. An hourly rate of $20 to $40 translates into a yearly salary range of $41,600 – $83,200. Freelance bookkeepers typically charge much higher hourly rates, typically from $50 to $125.

However, since freelance bookkeepers and accountants are usually more experienced, they can often perform the required work in less time. For that reason, it’s not unusual for small businesses paying freelance/outsourced bookkeepers less than they would have paid a full -time employee for the same work. Some bookkeepers charge a flat monthly fee based on the complexity of your needs. Depending on the amount of work involved, flat fees typically run from $300 for a small, simple service business up to several thousand dollars for larger, more complex client.

Can a bookkeeper handle taxes?

While bookkeepers maintain records and prepare financial reports, tax preparation is often handled by accountants. However, some bookkeepers offer tax support.

Do I need a full-time bookkeeper?

Not necessarily. Many small businesses benefit from part-time or outsourced bookkeeping services. Most small business start-ups outsource the bookkeeping function while they’re small, as this usually is the most cost-effective alternative.

Where can I read more about hiring a bookkeeper?

If you haven’t already read about full charge bookkeepers that’s a good place to start. You can also check out this article by the staffing company Robert Half.

Conclusion

Hiring a bookkeeper can transform the way you manage your business finances, giving you more time to focus on growth. Whether you choose a traditional bookkeeper or a full charge bookkeeper, understanding your needs is the key to finding the right fit. By asking the right questions and avoiding common pitfalls, you’ll ensure a smooth financial future for your business.