Top 3 Qualities of a Good Bookkeeper
The success of the business depends on many factors, one of which is having accurate and reliable financial data. Bookkeeping is essential in every business regardless of its size. It is not solely for compliance with tax and federal laws because bookkeeping gives you a clear understanding of the business’s financial performance which is important when making decisions.
There’s a reason why the word “bookkeeper” has been in the English vocabulary since 1529. Bookkeeping is an essential function of every business. Even William Shakespeare knew that! Whether your company is big or small, bookkeeping helps you keep track of your financial health and allows you to make informed decisions about your business.
But not all bookkeepers and bookkeeping service providers are created equal. If you’re looking for a bookkeeper for your business, it’s important to know how to identify one who can deliver on the promise of bookkeeping excellence and help you take your business to the next level.
There are a lot of things to consider when hiring a bookkeeping firm. It is crucial because you are entrusting your finances to the firm. Here are the top 3 qualities of a good bookkeeper you should consider when choosing a bookkeeper or bookkeeping firm:
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Reliable and Trustworthy
The world of bookkeeping is not always black and white. As a business owner, you want to be sure that your records are accurate and in order, but this could take too much time and energy away from running your business and generating profit. In such cases, it would be best to hire a qualified bookkeeper. However, simply being qualified is not enough, there are other criteria that a good bookkeeper must meet. A qualified bookkeeper has credentials and certifications but this does not mean being reliable and trustworthy. You want a bookkeeping firm with credibility and integrity that can give you peace of mind.
Look for a firm that is efficient, can give you timely and relevant reports, and more importantly knows how to handle confidential information. In addition, you want a bookkeeping firm that will respond to your questions either by email or phone call on a timely basis. Reliable response to your needs as a business owner is critical particularly when you need the information to make urgent business decisions.
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Regularly Updates Knowledge
One of the most important qualities for a good bookkeeper to have is an updated knowledge base. Several years ago, the first step in getting qualified as a bookkeeper was to take a test and pass it.
If you passed that test, you were qualified to be a bookkeeper, and it did not matter what your level of education or experience was. Nowadays, you are required to have a college degree and have four years of experience in order to become a certified bookkeeper. A quality of a good bookkeeper is that the bookkeeper must regularly update their knowledge. It is not enough that the bookkeeper is knowledgeable. What they know can be outdated at some point in time. It is important for them to keep up with the latest information regarding accounting principles, tax laws, and other business-related topics.
Good bookkeepers should also be familiar with computer programs such as Excel, QuickBooks, and other similar types of software programs. They should know how these programs work and how to troubleshoot problems that may arise from using them. A good bookkeeper should also be familiar with financial concepts such as depreciation and amortization schedules, cash flow analysis, balance sheets, income statements, and other financial statements. Good bookkeepers need to understand how these concepts work.
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Understands the Industry
For instance, law firms have Trust rules to follow to manage their trust account. Find a bookkeeping firm that is well-versed in the industry you are in. It is more efficient and reliable. This can also minimize the reporting errors.
As the owner of a small or medium-sized business, you have a lot of work to do. You may find yourself doing all the work and taking on roles you never thought you would be responsible for. One thing that you should consider signing up for is cloud bookkeeping services, but with so many options out there, how do you know which one is best for your business?
There are many key qualities that define a good bookkeeper, but perhaps the most important one is their ability to understand your industry. A bookkeeper who understands your industry knows how to classify transactions for this industry and the relevant tax deductions and write-offs applicable to this industry. They also know how it is supposed to be run – what goes on behind the scenes in terms of accounting day-to-day activities and what role they play as a bookkeeper in order for everything to run smoothly.
Some firms have a specialty in restaurants, auto dealers, logistics and many more. Some industries use specialized software and follow different reporting policies. For instance, law firms have Trust rules to follow to manage their trust account. Find a bookkeeping firm that is well-versed in the industry you are in. It is more efficient and reliable. This can also minimize reporting errors.
For example, if someone has worked at an accounting firm before coming into their own practice, they will already have some experience working on behalf of clients in different industries. This
Bottom line
Take these top 3 qualities of a good bookkeeper in mind when you are looking for a bookkeeper for your small business. There are plenty of bookkeepers out there but only a handful can truly be called a good bookkeeper.
If you feel like you’re overwhelmed with your small business bookkeeping, it might be time for you to get in touch with us so we can help you out!
