Key Questions to Ask and Consider When Hiring a Bookkeeper
Accurate financial information is crucial for your business’s health and success. Think of it as a clear map guiding your journey, helping you make informed decisions, track progress, and avoid financial pitfalls.
Do you need to know what you owe others or what others owe you? Is the CRA pressuring you about a recent HST filing? Accurate records and transactions hold all the answers.
Despite the importance of this information, not all business owners prioritize it. This could be because they haven’t faced the consequences, lack the time, rely too much on intuition, or fear confronting their financial reality. If this sounds like you, consider this your sign to safeguard your business’s financial records. A straightforward way to do this is by hiring a competent bookkeeper.
But how do you ensure they are truly capable of handling your business’s financial transactions? In this blog, we’ll explore the key questions you should ask to find the right bookkeeper for the job.
What Should I Ask?
Every business owner wants the best for their business, and that starts with asking the right questions to screen potential team members. If you’re unsure where to begin, here are a few key questions to get you started:
General Experience
Start by asking how much experience they have. Specifically, how much experience do they have working in your current accounting software? This is critical as all accounting software functions differently, and experience in one software does not translate to another.
It’s also important to note if they have experience in the industry you are in. Bookkeepers have to work very closely with business owners, and it is an asset to be well-versed in the industry; after all, there are differences between home builders, lawyers, and dentists. The premise of being a bookkeeper in these industries may be the same, but the details are often quite different.
Here is some accounting softwares that are used in Canada – which is a plus if your bookkeeper candidate knows very well how to operate:
- Xero
- Quickbooks Online
- Quickbooks Desktop
- Sage50
- Sage300
- Freshbooks
- Quicken
Experience With Audits
You should also ask the candidate if they have experience handling CRA audits. With audits becoming more regular, businesses must be prepared to be audited at any time. A bookkeeper with audit experience will know what to look for, ensuring you are compliant. This allows business owners to rest a little bit easier.
Certifications
Do they have any Bookkeeping or Payroll Certifications?
Certifications matter because they prove that the candidate has undergone the necessary training to acquire expertise. In Canada, for example, there is an organization called the Certified Professional Bookkeepers of Canada, which offers various levels of bookkeeping certification, the highest being a “Certified Professional Bookkeeper” (CPB).
On the other hand, there is the National Payroll Institute, which offers two levels of payroll certification: Payroll Compliance Professional (PCP) and Payroll Leadership Professional (PLP). The first level of certification (PCP) is used primarily for smaller organizations (less than 50 staff). In comparison, the second level (PLP) is used for larger organizations that have payroll departments or for employers with around 200 employees and a payroll department.
It’s important to note if any of your candidate bookkeepers are part of these organizations and what level of certification they have so far.
Reputation
The reputation of your candidate bookkeeper is also worth checking. How did you hear about the candidate? Did they come highly recommended by someone you trust? Have you heard negative things about them? Or perhaps a reference check is needed if you don’t know much about them. If they are truly interested in working with you and are confident about their bookkeeping knowledge, a reference check should be something they do not shy away from.
Other Things to Ask
In addition to the core questions, it’s helpful to ask some unconventional but insightful questions to gauge your potential bookkeeper’s capabilities. Here are a few to consider:
“Can you give me an example of a creative solution you’ve implemented to streamline financial processes for the businesses you’ve worked with?”
Asking this question helps you assess the candidate’s problem-solving skills and innovation in addressing industry-specific challenges. By sharing concrete examples, candidates demonstrate their ability to think outside the box and adapt financial practices to meet your particular industry’s unique needs and demands.
This question also allows you to gauge the candidate’s practical experience and potential contributions to improving efficiency, accuracy, and effectiveness in financial management, which can ultimately be beneficial in enhancing the overall operation of your business.
“How do you stay updated on changes in the industry that may impact financial regulations or practices?”
This question evaluates a candidate’s proactive approach to staying informed and adapting to evolving industry standards. It helps you assess a candidate’s commitment to ongoing learning and awareness of regulatory updates and industry trends that could affect financial management.
It also helps you ensure that the bookkeeper you hire is equipped to maintain compliance, anticipate potential challenges, and implement best practices relevant to your business’s specific needs.
“How do you prioritize and manage financial tasks during peak seasons or periods of high demand in the industry that you’re working in?”
Peak seasons or periods of high demand are common occurrences in many businesses, during which financial reporting tasks can become more challenging due to increased workload and complexity. While bookkeepers should expect these fluctuations, it’s important for business owners to know how they prioritize and manage financial tasks during these times to ensure that financial operations run smoothly and efficiently.
Understanding how bookkeepers handle peak seasons allows business owners to assess the bookkeeper’s organizational skills, time management, and ability to maintain accuracy and timeliness in financial reporting, even under pressure. It helps you ensure that your business can effectively navigate through busy periods without compromising the quality and reliability of your business’s financial information.
“How do you leverage technology and software to enhance financial reporting and analysis for the businesses you’re working with?”
In today’s rapidly evolving business landscape, technology is crucial in driving efficiency and staying competitive. As times change, businesses must leverage technology and other resources to keep pace with these advancements.
That’s why it’s important for business owners to ask bookkeepers how they leverage technology and software to enhance financial reporting and analysis. This question helps assess the bookkeeper’s proficiency utilizing modern tools and resources to streamline financial processes, improve accuracy, and generate meaningful insights.
By understanding how candidates harness technology, business owners can feel confident that their team and financial operations are evolving, efficient, and equipped to adapt to future changes.
Finding the Right Bookkeeper for Your Business Is a Valuable Investment
Looking for the perfect bookkeeper for your business may take some time, but it’s definitely worth the effort. Having an expert to oversee your business’s financial data and transactions is invaluable as it helps mitigate risks and ensure that your business’s financial aspects are aligned with your goals.
With the tips and strategies we’ve provided, finding the right fit for your business will be much simpler. If you believe our team has what it takes to provide you with the best bookkeeping experience your business needs, don’t hesitate to reach out to us anytime!
At eGO Bookkeeping, we assist businesses with their Bookkeeping and Payroll needs.
We have team members who are certified with the CPB and NPI. We have been through many different types of audits (Payroll, HST, Accounting firm audits) and have no problem with reference checks. We also work with various industry types.
Our website also has a calculator that compares the cost of having an in-house bookkeeper (employee) with outsourcing to a bookkeeping company like ours – you can check it out here!
Message us today to get to know our team better!