A bookkeeper or an administrator will be one of the organization’s most essential hires. A bookkeeper can manage your accounts efficiently, while an administrator may order the paperwork to keep you organized. A wrong recruit may take you off the rails.
There are some critical skills required to provide support for small businesses. You need to keep these things in mind while hiring a support service.
A good bookkeeper or administrator can be the glue that keeps an organization together. He/she must have the bookkeeping expertise for an organization with an equal scale and scope to yours. You can also search for someone at a comparable stage in their business lifecycle, which has worked in an organization.
For instance, the bookkeeping for tradies is a beneficial concept that standards of a high-growth start-up may be drastically different from those of a 30-year-old construction firm. It should be easy for an accomplished bookkeeper to look ahead and foresee needs when they emerge. They should have familiarity with the business and know the particular criteria for bookkeeping and administration.
2. Use of Technology
To fulfill the business demands of the 21st century, you can use a software framework to maintain the financials of your business and handle your books. The best bookkeeper should be qualified to use your bookkeeping/accounting tools.
They should process online payments and execute bank reconciliations using other standard resources such as Microsoft Excel. They must also be able to use any industry-specific programs you have (e.g., forecasting, billing systems).
3. Education and Training
It is essential to prepare and train a competent bookkeeper and have a high standard of business acumen. Although a master’s degree may not be necessary, it is crucial that basic business accounting and finance are understood.
A bookkeeper should be educated and kept up-to-date with improvements to accounting rules and procedures that directly impact their position.
4. Tax Preparation and Planning
Your bookkeeper must understand how to get the business ready for the tax season. The relevant tax deadlines for products, such as quarterly tax projections, should be understood.
They should know how to keep accounts and receipts as well as audits well prepared for tax seasons. A bookkeeper plays a critical role in maintaining a company ready, even if it is advisable to use an accountant to plan the corporate taxes.
5. Cash Flow Management
The ability to stay on top of cash flow and predict cash flow needs is one of the most critical skills a bookkeeper can have.
When assessing cash flow requirements, considerations such as company seasonality, taxation, incentives, and recurring annual activities must be weighed. The bookkeeper must be able to balance both of these criteria.
6. Attention to Details
A bookkeeper and administrator must have a keen focus on detail due to the nature of the job. They should be able to recognize faults and balance accounts thoroughly. They should be able to produce transparent and succinct financial results that are timely and reliable.
Outsourcing a bookkeeper to support your small business is one of the most important decisions you will make. So, make sure to do your research and don’t hesitate to ask questions.