Hire a bookkeeper for your business
Should you hire a bookkeeper for your business?
Yes. You should hire a bookkeeper once financial tasks start to slow you down or risk costly errors.
Here is a quick view before we dig in:
- A bookkeeper tracks and records your daily money movements.
- They handle payroll, statements, and transaction records.
- You can hire one directly, through a job platform, or through a BPO firm.
As a small business grows, it learns to pass key tasks to new hires. For example, it may outsource a staffing firm to expand offshore. It may also bring in a hiring a new virtual assistant to handle repeat tasks. Or it may add an operations manager to run daily work.
Often, it also means hiring a bookkeeper to track and record the firm’s money. As the company gets bigger, more people are needed to do this well.
Bookkeepers’ main responsibilities
A bookkeeper’s role depends on the size of the company and its type of business. In small firms, bookkeepers tend to handle broader duties. In a general sense, here are the main duties of a bookkeeper.
Payroll processing
Bookkeepers can take on the slow job of payroll. For example, they track missing hours, holiday and overtime pay, unpaid leave, and tax deductions. Good payroll processing services keep this work accurate and on time.
Preparing financial statements
Bookkeepers prepare the firm’s financial statements, balance sheets, and cash flow statements. In addition, they can review your source documents and post entries into your accounting software.
Recording all transactions
The bookkeeper often runs the company’s general ledger. This is the record system for a firm’s money movements.
As noted above, they also produce statements and reports for company leaders. In addition, they work with the following records:
- Receipts
- Accounts payable
- Accounts receivable
- Expenditure
- Profit
- Loss
- Review records
There is no room for mistakes in this work. So bookkeepers double-check records to make sure the numbers match.
In addition, some entry-level bookkeepers monitor loans to keep payments up to date. They also flag big errors for accountants to resolve.
Bookkeepers vs accountants
One common mix-up is differentiating what bookkeepers and accountants do. Bookkeepers fit small businesses well. However, medium firms and large companies also need licensed accountants.
| Bookkeepers | Accountants |
| Only required to have any business or finance degree | Required to have an accounting degree and Certified Public Accountant (CPA) license |
| Record daily financial transactions, debits, and credits; produces invoices | Verify and analyze data recorded by the bookkeeper |
| Focused on the day-to-day affairs | Focused on the big picture |
| Cannot be considered an accountant without proper license/certification | Can be considered a bookkeeper |
Scope of responsibility
Bookkeepers handle the daily work. They keep accounts clear and precise. For example, they record credit card activity into QuickBooks and update owners on accounts receivable.
Accountants, on the other hand, review these accounts each quarter. They double-check, make small fixes if needed, and file official reports.
College degree
Bookkeepers only need a business or finance degree. Accountants, however, need an accounting degree and a Certified Public Accountant (CPA) license.
Daily tasks and responsibilities
Bookkeepers record daily transactions, debits, and credits. They produce invoices and focus on day-to-day work. Meanwhile, accountants verify and analyze the data the bookkeeper records.
Small businesses often do well by hiring or outsourcing just a bookkeeper. However, bigger firms should hire both. As a result, they get better records and smoother operations. Many owners start with bookkeeping for small businesses before adding an accountant.
Why hire a bookkeeper for your business
Bookkeepers from top providers like Boomering are very reliable at making sure your business earns more than it spends. They give an extra pair of eyes on your funds. So you do not run out of day-to-day money.
In addition, you can ask your bookkeeper for input when you plan to invest, expand, or get a loan. Here are some reasons to hire a bookkeeper for your business.
Separate checkbook
A dedicated bookkeeper sets up a separate checkbook for your business. As a result, the business counts as its own entity. Separate checkbooks bring many perks. For example, they lead to tax savings, tidy books, and better decisions.
This is a big win for those just starting out. After all, it is better to learn in an organized way than to leave things to chance.
Reduced accounting costs
Small firms can keep books tidy and secure at a low cost. For example, they can hire a bookkeeper instead of an accountant for daily transactions. Some firms also use virtual bookkeeping tools to trim costs further.
Save on taxes
Bookkeepers help you keep better records. In turn, they can help to improve your tax return. With them, taxes feel like a breeze. So you avoid audit costs and poor records.
Finding the right bookkeeper for your business
Do not rush when you hire a bookkeeper. After all, they play a big role in your growth. They handle your records and your money. So invest time and care to find someone you can trust.
Here are some basic qualities of a good bookkeeper.
Good industry knowledge
Some sectors need special records or rules. So look for a bookkeeper who knows your industry well. Prior work with a company like yours is a bonus too.
Well-organized
Your bookkeeper handles your records and books. So you need them to be very organized and strong on admin skills.
Dependable
Reliability should be a must when you hire a bookkeeper. If you can, check their references. As a result, you confirm the person is a hard worker who will not leave you hanging.
Hire a bookkeeper
As noted above, a bookkeeper is a key part of your team. Once your list of needs is ready, it is time to think about where to find one.
You have many options to choose from. For example, you can directly hire a bookkeeper to work in your office. Or you can hire one from a local staffing agency. You could also hire someone to work remotely. Or you might choose a bookkeeper from a trusted offshore provider.
Modern technology lets us try new ways to hire staff. Over the years, outsourcing has opened up many options, with its own pros, cons, and clear results.
There is a big myth about the industry. Many people think outsourcing is only for call centers and customer support. However, you can outsource almost anything with success.
From social media and graphic design to architecture, telehealth, and bookkeeping, outsourcing works well. As a result, it is an efficient, low-cost option for small and large firms alike.
Online job platforms
Online job platforms like Freelancer, Onlinejobs, and Upwork have grown popular. Many professionals now look for new remote work on them.
These platforms promise easy access to a wide pool of remote talent. With them, the general steps you handle yourself include the following:
- Create a Freelancer/OnlineJobs/Upwork account;
- Post a job listing (be as specific as possible in order to weed out the unqualified potential candidates);
- Wait for applicants to submit their proposals;
- Conduct assessments and interviews;
- Choose who to hire;
- Sign a contract with the chosen employee;
- Start working.
These steps take real time and effort. So they can be hard for a busy small business owner. However, if you are hands-on and want to know your new hire well, this is a good option.
Here are the other pros and cons of outsourcing through online job platforms:
| Pros | Cons |
| Secure and convenient platform | Extra charges (You have to pay these platforms on top of the employee’s salary) |
| Access to a wide and diverse pool of professionals | There’s possibility of being scammed |
| The employee will be working directly under you | The hiring process will take too much of your time and energy |
| Hands-on experience in the hiring process (if that’s your thing) | Having to personally weed out bogus/unqualified candidates is already a job in itself |
Outsourcing bookkeepers to BPO firms
Using Business Process Outsourcing or BPO companies is an easy way to outsource your bookkeeper. Like job platforms, BPO firms connect you with a strong pool of qualified pros.
However, you save time and effort here. After all, these firms have expert recruiters who do the hard work for you.
Different BPO firms serve different markets. For example, some focus on small and medium firms. Others serve large corporations.
So do your research to find the right fit for your needs. This is true whether you want one bookkeeper or a full team. For more, see this guide to accounting outsourcing in the Philippines.
| Pros | Cons |
| Companies can save up to 70% on overhead costs | Occasional problems with the internet infrastructure |
| Scalable and cost-effective solutions (especially compared to direct hiring) | Data privacy concerns |
| Less matters to worry about (like taxes, benefits, etc.) | Less direct communication with the employees |
| Access to a talented and dedicated global workforce | Time zone differences and cultural barrier |
| Simpler and more convenient onboarding process |
Hiring a new bookkeeper does not have to be hard. Traditional onboarding still works well. Still, it helps to weigh newer ways to hire too. So take your time, do your research, and choose wisely.
Partnering with a reputable BPO provider like DOXA will ensure that your outsourcing venture will go as smoothly as possible. You can also explore outsourced accounting to see how a full finance team can support your growth.
If you are looking to consider outsourcing, feel free to check out Outsource Accelerator’s Outsourcing Directory, where we have listed over 700 BPO companies for you to get the best terms, at the best prices. You may also get a free quote to get you started.
Frequently asked questions
What is the difference between a bookkeeper and an accountant?
A bookkeeper records daily money movements and keeps your books tidy. An accountant reviews that data, files reports, and gives big-picture advice. In short, bookkeepers handle the daily detail, while accountants read the wider story.
How much does it cost to hire a bookkeeper?
Costs depend on where you hire and how you hire. A local in-house bookkeeper usually costs more than an offshore one. Many firms save up to 70% on overhead by outsourcing to a BPO provider.
Can a small business outsource its bookkeeping?
Yes. In fact, many small firms outsource bookkeeping to save time and money. A provider gives you trained staff without the cost of hiring full-time. As a result, you can focus on running the business.
What skills should I look for when I hire a bookkeeper?
Look for strong industry knowledge, tidy habits, and clear reliability. In addition, check their software skills and references. These traits help you trust them with your records and money.
Do bookkeepers handle payroll?
Often, yes. Many bookkeepers track hours, overtime, leave, and tax deductions. So they can run payroll along with your other records. Still, confirm the scope before you hire.
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