Most small business owners think they can manage everything on their own. They want to control every aspect of their business. Even functions like accounting and finance.
It is common to find entrepreneurs doing the bookkeeping themselves. One reason for this might be to save money. Or they might not know the value of a bookkeeper for their business.
But let’s get real here. No one can do everything. As a business grows, you may need to appoint a bookkeeper. Now you can concentrate on your business and leave the accounting to the bookkeeper.
However, there are some qualities a good bookkeeper should have. And we will describe them below.
Who is a Bookkeeper?
A bookkeeper is a professional who records all the financial transactions of a business. He prepares and maintains important financial statements, like a profit and loss statement, balance sheet, cash statement, etc.
Qualities a Professional Bookkeeper Must Possess:
1. Bookkeeping Expertise:
A CPA license or a college degree is not a must for a bookkeeper. However, he/she should possess in-depth knowledge about bookkeeping. Practical experience in accounting, taxation, and finance is required. Bookkeeping is not about theoretical knowledge but practical application.
2. Up-to-date with Industry Developments:
The basic concepts of accounting remain the same. However, changes take place in tax policies, government regulations, banking rules daily. Thus, a bookkeeper should know about the latest updates and implement them in the business.
3. Understands The Business:
A good bookkeeper should take time to understand the client’s business. Only a committed bookkeeper can deliver quality service. Every business is different. A bookkeeper should be aware of what accounting rules apply to a particular business.
Many small businesses prefer to outsource their bookkeeping. In such a scenario, a bookkeeper should be available to answer all questions that their clients have. The finance function in a business is crucial. Several financial issues need resolution immediately as they impact a businesses’ profitability.
5. Detail Oriented:
Accounting needs a person who is meticulous about details. Any minor mistakes in recording financial transactions can have serious repercussions. A bookkeeper should keep all financial statements up to date at all times. He should make accurate entries in the ledgers daily.
6. Advisor to the Business Owner:
A bookkeeper should advise his client about the best accounting practices. An educated business owner will cooperate to maintain records. Also, he should highlight any discrepancies in the accounts for immediate correction.
7. Committed to Client Satisfaction:
It is the job of a bookkeeper to maintain the accounts, so it meets the requirements of financiers, vendors, clients, and the tax department. He should work to the complete satisfaction of his client.
A bookkeeper takes the burden off the shoulders of a business owner. So if you are hiring a bookkeeper for your business, see that he/she possesses the above qualities.
If you need bookkeeping services, you can contact us to see how we can work together.
If you would like to watch the video of this article, click on the link below:- 7 Essential Qualities Of A Good Bookkeeper For A Small BusinessOther Accounting Related Information