6 Essential Questions to Ask Your Potential Bookkeeper
Hopping on a discovery call with a bookkeeper can be intimidating if you don't know what to ask... so, today I'm solving that problem for you! Make sure you get these questions answered:
❓ What prior experience do you have working with businesses in my industry?
A bookkeeper with industry-specific experience will allow you to leverage their years of expertise and avoid big learning curves. Here are some other ways they might be helpful:
Different industries have their own jargon and terminology. A bookkeeper familiar with your industry will be fluent in the language of your business, making communication smoother and more effective.
Every industry has its own set of regulations and compliance requirements - a bookkeeper with industry experience will be well-versed in these regulations.
Different industries have different financial practices and standards. For example, inventory management methods may vary between retail and manufacturing businesses. A bookkeeper familiar with your industry will understand these nuances and can tailor their services to meet your specific needs.
Industry-specific knowledge allows a bookkeeper to provide valuable insights into trends, benchmarks, and best practices within your sector. This can help you make more informed financial decisions and stay competitive in your industry.
With industry experience, a bookkeeper can hit the ground running. They'll be familiar with common processes and procedures, resulting in faster and more accurate financial reporting for your business.
❓ Do you work on a team or with subcontractors?
Having your bookkeeping done by a contractor with the right training and data security in place is completely normal, but your bookkeeping company should be upfront about their outsourcing practices. Here are some reasons why you may prefer to work with a bookkeeper who handles your needs on their own:
Your bookkeeper gets to know your business inside and out, allowing for a deeper understanding of your financial goals, challenges, and preferences. This personal relationship fosters trust and communication, ensuring that your bookkeeper can provide customized solutions that align with your objectives.
You have continuity and consistency in your financial management. You work with the same individual on an ongoing basis, building a rapport and familiarity over time - this consistency streamlines communication.
Your bookkeeper can often provide faster response times and quicker turnaround on tasks compared to larger firms with multiple team members. With fewer layers of communication and decision-making, issues can be addressed promptly, and tasks can be completed more efficiently.
Your bookkeeper will develop a holistic understanding of your business's financial situation, allowing for more comprehensive and integrated financial management. By overseeing all aspects of your finances, from day-to-day bookkeeping tasks to long-term strategic planning, your bookkeeper can provide holistic insights and recommendations that support your overall business objectives. This integrated approach ensures that your financial decisions are aligned with your broader business goals and vision.
❓ What is your communication policy?
Aligning your communication styles will be crucial for a successful working relationship! Here are a few things to consider and discuss with your potential bookkeeper:
How quickly can you expect a response from your bookkeeper?
Can you expect to contact them primarily through email or over the phone?
Are they available during the working hours that are most helpful for you?
Will you be able to schedule meetings when/if you need them?
❓ What can I expect to receive on a monthly basis?
Make sure you understand what services are being provided, what reports you’ll be receiving on a monthly basis, and when you should expect these deliverables. Here’s what most of my clients get every month:
Profit and Loss that is broken out by month for the entire Year-to-Date
Balance Sheet for the current reporting period (If you’re receiving it in May, the reporting period would be April)
Statement of Cash Flow
Profit and Loss that compares the current period to a prior period
Key Metrics, customized to their specific needs
❓ How do you price your services?
Understanding how your bookkeeper prices their services can help you understand if they’re a great fit for your business! You’ll also want to discuss their rate increase policies and how they assess your project for potential increases. Here are three major pricing models that a bookkeeper might use:
Hourly Rate: In this model, clients are charged based on the number of hours worked. The bookkeeper sets an hourly rate, and the client pays for the actual time spent on the project.
Project-Based Pricing: With project-based pricing, bookkeepers quote a fixed fee for the entire project, regardless of the time it takes to complete. The bookkeeper assesses the scope of the project, considers factors such as complexity, deliverables, and client requirements, and provides a comprehensive quote based on the estimated workload.
Value-Based Pricing: This focuses on the perceived value of the bookkeeper’s services to the client rather than the time or effort required to complete the project. Bookkeepers set their prices based on the value they believe they can deliver to the client, taking into account factors such as the client's goals, outcomes, and the impact of their services on the client's business.
❓ What is your cancellation policy?
This one is short and sweet: not every bookkeeper is going to be a great fit for your business. Make sure you understand how to cancel your contract and what ownership you will retain over your bookkeeping records. (Hint: you own your records - this should not be negotiable.)
Armed with these questions, you'll be ready to hop on that discovery call with confidence and find the perfect bookkeeper for your business. If you think that might be me, here’s a link to my schedule!