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Business owners need to find an accountant that’s right for their company and each other. This job description will give you a glimpse into the work of a bookkeeper, as well as what they’ll do on the job.
A bookkeeper is a person who manages the financial records of an organization. They are responsible for recording transactions and keeping track of cash flow, as well as preparing reports on the financial status of the company. Read more in detail here: bookkeeper responsibilities list.
When looking for a bookkeeper for your small business, look for someone who is trustworthy and can keep your financial information private. This position requires a high level of attention to detail; otherwise, your company’s financial image might be distorted. You can hire a full-time bookkeeper, but many small companies begin by hiring a contractor until they reach the point where they require a full-time personnel.
To attract qualified candidates, you’ll need to write a compelling job description. You may save time by using our free bookkeeper job description template, which you can customize to fit your company’s requirements.
Download a free job description template for a bookkeeper.
Consider Upwork if you’re looking for a contract bookkeeper. It offers hourly and fixed-rate alternatives, as well as skill-testing capabilities and protection in the event that you need to register a dispute or commence remediation. You’ll get offers from freelancers, a pricing quotation, and a turnaround time when you submit the project you want done. Sign up now to give it a go.
Take a look at Upwork.
When it comes to hiring a bookkeeper, there are a few things to keep in mind.
It’s difficult to find a bookkeeper you can trust with your company’s sensitive information. In reality, recruiting for any accounting or finance post is challenging and time-consuming. This is a procedure that should not be rushed. Whether you’re employing an employee or a contractor, you’ll need to be fair when defining essential qualities and smart in where you look for applicants. Know what Questions to Ponder and how to determine whether or not the applicants are trustworthy.
Qualifications Required
While bookkeepers do not need to be licensed like CPAs, they might be certified by volunteer organizations. You want a bookkeeper who keeps up with current legislation and maintains a particular degree of expertise. If a candidate has been certified by a bookkeeping organization such as the National Association of Certified Public Bookkeepers (NACPB) or the American Institute of Professional Bookkeepers (AIPB), you may be certain that they have the requisite abilities and knowledge for the position.
Your precise work requirements may vary, but you’ll need a bookkeeper who can do the following at a minimum:
- Accounting software
- Credits and debits
- Invoicing
- Statements of Financial Position
- Payroll
- Transactions that are deferred
- Entries in the journal
- Calculation of Benefits
- Customer service
Where Do You Look for Candidates?
You need to go where the applicants are—job boards—to hire a bookkeeper. To obtain a decent variety of applications, I suggest posting to at least three different job sites. You should utilize a website dedicated to hiring freelance bookkeepers to find freelance bookkeepers. If you wish to hire someone for the position, you may broaden your search to include other employment boards. While many job seekers use many job boards, others only use one, and you want to make sure your job ad reaches as many potential candidates as possible.
You may also go out and actively look for applicants. You may search for bookkeepers in your region with the experience you need using your preferred employment board.
Make sure the experience is relevant to your industry. For example, if you work in construction, a bookkeeper who previously worked at a restaurant may not be the ideal fit. This implies you’ll need to remember the minimum requirements for the accounting employment.
Questions to Ponder
When interviewing individuals, you must ensure that they possess the necessary abilities for the position. Open-ended inquiries and ice breakers are excellent methods to get a discussion started with a candidate. However, you must assess the applicant’s skill level and ability to do accounting chores.
Move on to more precise and thorough inquiries after you have a better understanding of the candidate. When interviewing for financial roles, I prefer to ask the following questions:
- What kinds of financial reports did you prepare on a regular basis, and how did you utilize the data?
- What’s the worst financial mistake you’ve ever made? This may be something you noticed and had to inform your boss about.
- How do you deal with consumers that are upset about a bill or invoice?
- What conditions might prompt you to make an adjusting entry?
- How would you know if an adjusting journal entry was made to Receivables (accounts receivable), and how would you go about correcting it?
- What should you do if a bank reconciliation is slightly off?
- Colleagues may inquire about the company’s financial situation. How do you manage these talks while maintaining the confidentiality of corporate information?
The majority of bookkeepers should be familiar with Microsoft Excel. Use our free Excel exam to evaluate prospects before making a hiring decision.
Performing a Background Investigation
Many businesses have a policy that requires all new recruits to undergo a criminal background check. While some jurisdictions make it illegal to inquire about past criminal convictions during the interview process, you may still do a background check on individuals after they have accepted a formal employment offer.
A bookkeeper, on the other hand, isn’t simply any employee. They have access to the financial records of your organization, as well as credit cards and bank accounts. A background check on a potential bookkeeper may reveal useful information about their history, including concerns with two of the most critical characteristics of a professional bookkeeper: trustworthiness and financial stability.
A background check on an employee must be connected to the job’s responsibilities. You could do a basic seven-year criminal history check on a receptionist. A driver’s license check might be included for a truck driver. However, I urge that you do a financial background check on a bookkeeper.
Whether you go further into a bookkeeper’s past, you’ll find out if they have financial problems like enormous credit card debt, tax liens, or judgements against them. This is critical information that pertains to the role’s main responsibilities. Inquire about anything in the background report that you are worried about. Your bookkeeper will have access to very sensitive data about your business and personnel. You have a responsibility to preserve the sensitive information of your current workers by hiring a trustworthy employee.
Consider the legal ramifications if the person’s background screening findings preclude them from employment. When you hire someone based on the findings of a background check, it’s deemed an unfavorable employment decision that’s subject to anti-discrimination legislation. To be legal, your choice must be based on a non-discriminatory cause. When directly connected to the job description, failing to reveal major debts or personal bankruptcies might be a legal and non-discriminatory justification.
How Much Should a Bookkeeper Be Paid?
You’ll need to determine how much you want to pay your bookkeeper ahead of time, and adding this information in your job description will help you attract more qualified candidates. The amount you pick will depend on the location of your organization, the experience you’re looking for, whether they’re contractors or employees, and so on.
A full-time bookkeeper’s yearly pay varies from $30,000 to $60,000, whereas freelancers earn between $16 and $21/hour. Although these are broad ranges, they may be reduced depending on your sector, the bookkeeper’s expertise, the specifics of your firm, and the location of your organization.
What a Bookkeeper Is and Doesn’t Do
Companies often sling names about without considering how the term conveys the role’s responsibilities. An accountant, a comptroller, a financial analyst, and other finance-related occupations are not the same as a bookkeeper. While accounting entails more than just typing numbers into a spreadsheet, it is a fundamental financial role, so you don’t require someone with decades of expertise.
The following are common responsibilities for bookkeepers:
- Receivables (accounts receivable)
- Accounts receivable
- Debt levels are being monitored.
- Taking care of all business obligations (rent, loan, vendor)
- Reconciling bank accounts on a regular basis
- Keeping track of your finances
- Keeping track of incoming and leaving costs (including making physical bank deposits)
- Payroll and tax records
- Assisting your CPA in preparing correct financial accounts for business taxation
Instead of worrying about cash flow and bills, you can concentrate on your company with the help of a dependable bookkeeper. Finally, a skilled bookkeeper provides important insight into your company’s finances, helping you to make more informed choices.
Conclusion
Above all, you must have confidence in your bookkeeper. So, whatever you do, don’t hurry the employment and recruitment process. Having a bookkeeper who is a good fit for your requirements can relieve you of the worry and anxiety of performing this job yourself or having someone else do it who may lack the essential abilities. A competent bookkeeper should make your life simpler and less stressful by delivering accurate and up-to-date financial information to assist direct your firm.
The “10 functions of a bookkeeper” is a list of 10 different tasks that a bookkeeper has to complete. The list also includes a free job description.
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