There are two things that no entrepreneur should ever fully delegate: marketing and bookkeeping. The marketing and the bookkeeping of your business can easily make or break you (just think “new” Coke and Enron). That said, if bookkeeping is not your forte, hire someone to do it – you will save so much in frustration – just be sure to keep your fingers in the books. For most business owners, it makes more sense to focus on sales and client relations than spending time doing bookkeeping.
If you choose to hire a bookkeeper, keep the following in mind:
1. Get QuickBooks.
For ease of use, I highly recommend using QuickBooks. I have used QuickBooks both for myself and my clients since 1997 and highly recommend it for its ease of use/understanding.
2. She must see both the forest AND the trees.
You want your bookkeeper to be detail-oriented AND to see/understand the big picture. She needs to know what happens consistently – every month – and update your books without bothering you for items she should know about.
At the same time, she needs to be astute enough to see the larger picture and warn you of any impending problems before they happen.
3. She must provide timely reporting.
In hiring your bookkeeper, insure that you put in a provision for when you want to see monthly financials. The date will depend on when your bank month ends – give her a few days after that date to reconcile your accounts and produce reports. At a minimum, you want to see a profit & loss and balance sheet. Take the time to review the reports so you can spot any irregularities before they blossom into problems.
4. She must be trustworthy.
Hiring someone to keep track of your bookkeeping requires a level of trust between you both. You need to feel comfortable that she will keep track of your information and maintain your confidentiality. At the same time, if she pays your bills and has access to your bank accounts, you must also trust that she will not abuse that privilege. And make no mistake, it is a privilege to have someone trust you with their finances, their checkbook and their business.
5. She must have great communication skills.
If your bookkeeper will be communicating with your clients and vendors, she must represent your business as you would. Whether virtual or in-house, it’s critical that your bookkeeper be a positive force that further enhances relationships. The question of money can, at times, be a sensitive matter. You need someone who recognizes that and communicates appropriately.
Always remember – these are your books and this is your business. While you may hire someone to manage the details of tracking your finances, and should do so if this is not one of your strengths, the ultimate responsibility for oversight is yours.
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