What to Look for When Hiring a Bookkeeper.

A bookkeeper records, organizes, and categorizes your business’s financial transactions on a consistent basis, usually every month. They reconcile accounts to ensure your bank, credit card, and payment processor balances match your accounting records, and they prepare financial reports like your profit and loss statement and balance sheet. This data is essential for tracking overall business health, spotting trends, and making confident decisions. Without accurate bookkeeping, you can’t fully trust the numbers you’re using to run your business.

Bookkeepers handle the ongoing organization of your financial data, while tax accountants take that data and apply tax laws or deeper analysis. An accountant will prepare your tax returns and may also help with strategic planning. Accountants rely on clean, up-to-date records from your bookkeeper. Both roles are essential: your bookkeeper keeps your records accurate and up to date throughout the year, while your accountant uses those records to handle taxes and guide bigger-picture financial decisions.

If bookkeeping is taking too much of your time, you’re unsure if your records are accurate, or you’re avoiding it altogether, it’s time to bring in help. For many business owners, this happens once they’re consistently generating revenue, often well before reaching six figures. The earlier you invest in a bookkeeper, the sooner you’ll have reliable data for decision-making and can avoid the stress and expense of cleaning up past mistakes later.

No. While some firms provide both services, bookkeeping and tax preparation require different skill sets and priorities. A bookkeeper’s primary focus is keeping your financial records accurate and up to date throughout the year, while a tax accountant uses that information to prepare and file returns. If the firm you’re working with offers both, it’s important that the roles remain separate so each professional can focus on their area of expertise and deliver the highest quality work.

Beyond categorizing transactions, a professional bookkeeping service should reconcile all accounts each month, deliver accurate and timely reports, maintain organized records, and answer your questions promptly. They should also have security measures in place to protect your financial data and be proactive about flagging issues or trends. The best bookkeepers don’t just record your numbers, they help you understand what those numbers mean for your business.

A great bookkeeper minimizes the amount of work you need to do, but you’ll still need to provide information they can’t get themselves, such as clarifying certain transactions or sharing new account details. The right bookkeeper will have clear systems that make your involvement quick and efficient, freeing you to focus on running your business.

In many cases, yes. A higher rate often reflects more experience, a lower client load, and a greater ability to provide timely, accurate reports. Less expensive bookkeepers may be juggling too many clients or lack the systems to consistently deliver high-quality work, which can lead to errors, delays, or incomplete reports. While cost is always a factor, think of bookkeeping as an investment in the accuracy and reliability of your financial data. The better the quality, the easier it is to make confident decisions and avoid costly mistakes.