Consider the qualities of your business which make it unique and the risks of hiring a bookkeeper who does not understand those characteristics. Be very leery of hiring ‘budget,’ one-size-fits-all bookkeepers or bookkeeping services.
In this day of technology, virtual bookkeepers are becoming more common and often make more financial sense for many companies. Hiring a remote bookkeeper saves the business money because he/she works as an independent contractor who is not on company insurance, does not use company office space or equipment, does not add payroll expenses to the company, and only gets paid for the job he does, not the hours he is in the office. Because a virtual bookkeeper can work from anywhere in the country, businesses can enjoy the benefits of working with a specialty (or niche) bookkeeper who truly knows and understands the hiring company’s business.
For example: In my experience as a bookkeeper for rental businesses, many general bookkeepers and CPA’s like to treat rental businesses just like all the other businesses they serve, while some who are a bit more informed will separate them from other businesses but still lump long-term rentals and short-term rentals into the same pot. A bookkeeper who truly ‘gets’ the rental industry knows that there is a huge difference not only in the amount and type of work involved but also in the way the books should be set up and the way the transactions should be categorized. A bookkeeper who specializes in your industry can get you set up correctly, will already have ideas to share that will help you earn more money, and will save you from paying huge fees to have your books cleaned up after you realize things are not working out well.
An average bookkeeper will give you the right numbers in time to provide your CPA the information he/she needs to complete your taxes smoothly. A great bookkeeper will also use the software which best applies to your business (not one-size-fits-all software), gives you the right reports, regularly explains what can be done to improve your profits, and partners with you to grow your business.
Ryan Gallagher
owner/bookkeeper of Vacation Rental Bookkeeping