As business proprietors, you like to think that you can learn any skill it takes to run your companies better. However, can just someone learn to do their books become a Bookkeeper? That is like saying anyone can be an artist. Is it true? Might be, might be not. However, some learn the skills easily while others work at developing the skills for many years and end up being an average. You can be a successful business owner with a huge number of skills, however, if bookkeeping is one of the weakest links you have, you should probably employ a bookkeeper to help you. But before you get someone on board, you need to make sure they know exactly what to do, and you will want to lay down expectations for them in order to obtain what you require.
Following are 11 qualities you should look for in your Bookkeeper in Tullamarine to make sure that they are able to provide the service your business requires:
1. Your bookkeeper has to have a basic understanding of bookkeeping or accounting. They have to have a basic understanding of the difference between the 5 basic types of accounts (liabilities, assets, equity, expenses, and income).
2. They have to have an understanding of the larger picture. If you pay money for a piece of equipment, are they going to comprehend the concept of setting up the asset & liability accounts? Are they skilled enough to allocate the payment to liability principal reduction and interest expense?
3. Your Bookkeeper has to be detail-oriented. You require someone who is going to be able to concentrate on the little things. In turn, this will enable bigger things to take care of themselves. You do not have time to babysit them. They need to be able to take complete charge and take care of the little things that call for attention when it is about your basic financial operations.
4. They have to have monthly financial statements made available by the 10th of the following month. The 3 basic financial statements encompass the balance sheet, the cash flow statement and the profit/loss statement.
5. Your Bookkeeper has to have a willingness to follow through. You want a person who will ensure that the projects and questions are followed through to the finishing point. They have to be responsible for the follow through as you’re just too busy to be the one in-charge of project completion. You are here to assist with questions, but the projects have to be something they are in-charge of.
6. Your Bookkeeper should understand how to do correct job costing. It is very important that your bookkeeper is tracking down all the costs by item & job detail. Job costing is vital for the success of calculating how much your projects are truly costing. You should be able to depend on their provided information to be dependable.
7. They have to be willing to make a sturdy commitment to your business. If you are hiring a part-time Bookkeeper, it is essential that you find someone who’ll make your business a priority. Do not allow your part-time bookkeeper to squeeze their duties and responsibilities into their personal lives. This is one of the major issues seen with many small businesses. The proprietors allow their bookkeepers to complete their work whenever they get time. However, by doing this, you are enabling them to place your business at the bottom of their priority list. You require someone who is focused on making sure things get done properly and in time.
8. Your Bookkeeper has to have good communication skills. If your bookkeeper does not understand something, they have got to be willing to ask for help or clarification. Communication is vital so that you will have a good understanding of what is taking place in the office without you having to be doing the daily work.
9. Bookkeepers have to be computer literate. The old days of doing almost anything and everything by hand is long gone. You have to have a computerized bookkeeping system so that you can get quality reports. Your Bookkeeper should do not merely know the basics of your bookkeeping software. He should also be familiar with Excel, Word, e-mail and the internet.
10. Your Bookkeeper must have a basic understanding of the industry. While this is a thing that can be learned, you will be miles ahead on the learning curve, if the person you employ has a general understanding of the industry. And while bookkeeping for a hair salon, a retail store, internet service business and various others have the same basic fundamentals; it is not exactly the same. Each and every industry has different terms and aspects that can only be known and learned on the job. Therefore, you should be sure to look for a Bookkeeper, who has experience in the industry.
11. They should be interested in continuing their education. The bookkeepers should be committed to enhance and develop their skills by taking up additional classes or self-study to make sure that they are staying up to date with the bookkeeping and accounting skills your business demands.
If you want your company or organization to truly function in a profitable and successful way, it is critical that you set expectations and look for the above qualities in your bookkeeper before you hire them or bring them onboard. Good financial records are essential and fundamental to the success and profitability of your business. If you are not able to rely on your books or your bookkeeper, how are you going to hold cognizance about where your business is headed? Set the above expectations for your bookkeeper so that they are able to be a successful part of your team. You will be setting your business up for profitability and success.