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How to Hire Part-time Financial Advisor for Small Business: Avoiding Costly Mistake

Are you committing costly mistakes in hiring a temporary bookkeeping staff?

Or maybe, you don’t know you are making bad hiring decisions that is costing money for your small business.

If you are a small business owner and you’re starting to find yourself always exhausted every day because you also take care of the finance function of your business, you might be thinking of hiring someone to help you.

That’s a smart business move.

Delegating financial tasks to the right and more knowledgeable person is an important investment. The question for you is: do you know how to hire to avoid engaging unqualified temporary bookkeeping staff that will cost your small business more money that you can gain?

According to Falon Fatemi, in her article released last year in Forbes,

For a small company, a five-figure investment in the wrong person is a threat to the business.

Yes, recruitment is costly. And recruitment gone wrong is financially deadly for your small business.

Infographics Cost of a Bad Hire Infographics source: www.fastcompany.com


There are real consequences for small businesses in making bad hires.

Hiring the wrong person who cannot properly accomplish bookkeeping tasks you need done for your business will cost you time, resources, and energy. These are three important factors you need to save in order for you to efficiently run your small business operations. And these same three factors are the key reasons you are outsourcing daunting bookkeeping tasks.

If you made a bad hire, you could be living a daily nightmare instead of your greatest dream that will soon exhaust you.

There is also the painful problem about fraud. Hiring part-time bookkeeping staff opens your small business vulnerable to fraud attempts as a consequence of a bad hire.

Then, there is another important consideration — preserving your company reputation. The role of a financial advisor in your business, even if it is a part-time function, can directly impact your services. Such as, when incorrectly billing your customers. If your temporary bookkeeping staff billed your customers incorrectly, then you are risking developing a bad relationship with your customer hurting your business reputation and you could lose valuable revenue.

The earlier you realize how important it is to make sure you are hiring the right candidate to perform bookkeeping tasks, the better you will be prepared to outsource your bookkeeping functions and avoid making costly bad hires.


So, before you get too excited and jump to hiring your first temporary financial advisor, prepare.

And remember this: If you are in the start-up phase, a qualified professional financial advisor can help you setup your business. You may not need to hire a full-time financial advisor . A temporary financial advisor with adequate knowledge, experience and skills will know what your business needs to correctly prepare your financial transactions and help you kickstart your operations.

The catch? Hire the qualified professional temporary bookkeeping staff you can trust with your business financial data.

And of course, prepare to pay for quality service.

You must be thinking: If you could easily fall into the trap of getting a bad hire, why should you proceed to outsource your business bookkeeping functions to a part-time financial advisor ?

Good question.

Here’s what we can tell you: First, you cannot run a business alone; and running a small business, especially if you are bootstrapping, hiring a full-time financial advisor can be too expensive. Unless you are a financial advisor, if you own a small business, you will need someone with bookkeeping knowledge, skill sets, and professional experience to help you with tasks related to your financial data. Cost-wise, for many small businesses, the option of hiring a part-time financial advisor is a blessing. But if you are not careful, it could easily turn into a curse that can break your business. Choose someone you can trust.


How does a temporary financial advisor help small businesses?

There are multiple ways a temporary bookkeeping staff can help in the business process.

1. To create your books of accounts

Trying to figure out how to record a certain transaction, what account should it fall, could be overwhelming for a non-accountant. Having an financial advisor to establish your chart of accounts would enable you to record transactions accurately. Setting up your chart of accounts correctly at the onset will help you generate a meaningful financial information and analysis that will help you better manage your business and make an informed decision to grow your business.

2. To handle tax matters

Instead of spending your valuable time in computing your business tax, hiring a part-time financial advisor can do this for you accurately than you could. You simply turn over your bookkeeping records, receipts or invoices and other financial data for checking and computation. Someone with bookkeeping knowledge and qualifications can better do your tax than you. You will be at ease that your financials will be handled by someone knowledgeable when it comes to state and federal policies and standards.
Imagine the many things you can do with the time and energy you save from doing such time-consuming task. You can develop a new product, or launch a killer marketing campaign and many other revenue-generating activities.

3. To keep your financial records updated

Updating your financial records is highly critical and it becomes even more important during tax season. When you begin to think big and grow your small business, you will not be able to efficiently handle the recording of your daily transactions.
When you receive thousands upon thousands of sales, there is just not enough time and you need help. Someone has to take over your books of accounts to ensure it is updated accurately.

4. To prepare your financial statements

Financial statements are the best sources of information when making big financial decisions. You can quickly and easily generate your financial reports if you are using bookkeeping technology to manage your financial data such as QuickBooks.
But what you really need is a qualified bookkeeping professional to help you understand your numbers that impacts your business decisions.
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5. To prepare your business plans

Finance always accompanies any business plans. You'll need the advice of an financial advisor on the financial aspects of your business. He could help you create financial forecasts that are realistic and attainable taking into account all the possible costs your business would incur.

Hiring Process: Steps for small businesses to avoid making costly mistakes when hiring part-time financial advisor 

Step 1: Create a clear job description

Before you proceed with the job advertisement, make sure that you have crafted a very clear and in-depth list of the duties and responsibilities your possible employee would undertake. The list would also be of great help to you, as applicants undergo the interview process.

Step 2: Be specific and clear about the skills and capabilities you need

You should have a list of skills you require of a candidate to clearly describe what you need from a temporary financial advisor to successfully accomplish the job. If you are using tools like QuickBooks for example, you may need a temporary financial advisor with prior knowledge and training in QuickBooks so you don’t need to provide training. Training is a costly process and can interrupt your business operations that could mean financial losses.

Step 3: Schedule the interview of applicants and do your homework

Always make schedules to make the best out of your time. Before the job interview, you should do your homework of analyzing the applicant’s resume. Carefully list all the necessary questions related to the position. This way you won’t forget to ask the very important questions that will enable you to spot the candidate with the experience that matches the job description you have identified together with the required skills.

Step 4: Ask for references

Before you finally decide to engage the services of a candidate, be sure to perform a background check from each of the references that the applicant provided. This will confirm that all information they provided on their resume are true and correct. It’s the first step to building trust. Do not engage with a candidate whose information you cannot validate.

When should a small business hire a part-time financial advisor or bookkeeper?

Deciding for the right time to hire a part-time financial advisor or bookkeeper is a typical struggle for most small business owners. Those who use QuickBooks feel that most bookkeeping tasks are easy to accomplish.
But you must remember that all easy tasks still require time to finish.

The sooner you hire a financial advisor or bookkeeper to help you with bookkeeping tasks, the sooner you will discover what you could be doing wrong in your books of accounts. And most of the time, small business owners who think highly of themselves as excellent multi-tasker are not too excellent in keeping their financial data accurate and correct.

Here’s our two cents: Hire a part-time financial advisor or bookkeeper the sooner you decide to open shop.

Why? It’s simple: you want all your financial transactions recorded correctly and accurately right from the start.

The next question is: do you hire a part-time financial advisor or part-time bookkeeper?

That’s tricky. Financial advisor and bookkeepers are not one and the same. They are like doctors and nurses. While one prescribes, the other implements the prescription.

So, when hiring, you may need to get both at some point.

You will need a financial advisor to perform the analysis of your financial data and provide you with sound recommendations to help you in making business financial decisions. On the other hand, the bookkeeper takes care of the nitty-gritty tasks that keep your books accurate so your financial reports submitted to the financial advisor for analysis contains reliable financial data. 

We help you plan, forecast and analyze your financial data
so you can get on top of your finances today to grow your
small business big tomorrow.

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Address | 810 S. Mason Road, Ste 160, Katy, TX 77450
Office | 832-437-0385
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