Who is the right bookkeeping professional?
Finding a professional bookkeeping service that is a good fit for your needs is challenging. Unfortunately, a lot of bookkeeping services have come out of the woodwork during COVID-19 claiming to be experts without any kind of niche or specialization. These new bookkeeping services are run by people who may have experience specific to the business they worked in, but do not have the right background for your business. Many individuals think that since they knew how to do the bookkeeping for their old employer, they can do bookkeeping for anyone. They are wrong.
Who is the right bookkeeping service for my small business?
- Knowledge and fit:
- Do they know your industry?
- Are they a bookkeeping or an accounting service?
- Are they willing to learn and adapt?
- Philosophy and strategy:
- Are they looking to improve your business?
- Are they asking questions to learn your business?
- Will they be proactive or reactive?
- Qualifications and experience:
- Do they have any recent certifications?
- Is their experience related to your business?
- What do they bring to the table?
How bookkeeping is different from accounting
There are good and bad accountants out there. A lot of accountants offer bookkeeping services; however, you should be sure of what you’re getting before hiring an accounting firm to do your bookkeeping. We see a lot of accounting firms offer bookkeeping from the bank statement. Although this seems cheap and fast, it does not release the business from documentation requirements and often contains errors. Most accountants who say they do bookkeeping really just outsource this function.
Are these professional bookkeeping services a good fit?
Fit is one of the most important things when it comes to hiring a bookkeeping service. The team members you’re working with need to ask questions and get documentation in order to protect you. But the difference between collaboration and conflict depends on communication. Make sure you are happy with their communication style, and consider how they will get along with your team, before hiring for this role.
Which professional bookkeeping service is best for my business?
KATA Accounting Solutions PC focuses on niches such as marketing firms, communication consultants, and business coaches. We better protect our customers and focus our knowledge on the issues that matter most to them when we target specific types of businesses. We provide insights and advice looking forward instead of simply reporting what has happened.
Businesses are always served better by a specialist, not a generalist. We are focused when it comes to our bookkeeping services. When we get an inquiry from a person who is not in our niche, we don’t ignore them – we point them in the right direction. We would be happy to connect you with a bookkeeping specialist in our network, so please get in touch with us.
Should a professional bookkeeping service have certifications?
There are many ways that bookkeepers can show their qualifications, from academic study at colleges or universities to international designations. Just keep in mind the best fit for a restaurant or insurance company is not a bookkeeping service that specializes in farming. And a certification that is more than two years old is probably obsolete, because software is always changing.
Is a software certificate equal to a bookkeeping designation?
Bookkeeping designations, diplomas, and degrees are about the theory behind how to actually do the work. Any proper accreditation program requires detailed examinations on the theory and industry experience to become a full member. Your bookkeeping team ideally has a mix of both software certification, knowledge accreditation, and experience.
The different types of certifications and qualifications available are important to understand. Software certifications are about how to use the software. One of the most popular certifications comes from Intuit, but a QuickBooks ProAdvisor does not necessarily have any formal accounting knowledge. This certification exam does not cover bookkeeping theory or tax law. Still, this is often advertised as a bookkeeping certification, which it definitely is not.
Accredited bookkeeping certifications in Canada
Although you don’t need to spend a ton to have a Chartered Professional Accountant (CPA) specifically do your bookkeeping, CPA firms such as KATA Accounting Solutions PC do employ bookkeeping specialists and are worth the extra money. If you are hiring a bookkeeping service that isn’t part of a CPA firm, look for these designations:
- The Canadian Bookkeepers Association‘ Registered Professional Bookkeeper (RPB)
- CPB Canada Certification
- The Canadian Institute of Bookkeeping’ Certified Bookkeeper
Which bookkeeping software is best?
Your information flows easier, looks clearer, and moves faster with the right tools. But which software you should get depends on the industry you operate in, the size of your business, and the complexity of your daily transactions. QuickBooks is great for small businesses, but if you are a larger company you need an Enterprise solution. PCLaw for legal firms and Vadim for municipal governments are examples of specialized tools. It’s best to pick a bookkeeping service that knows the software that works best for your business.
How can a bookkeeper help me choose bookkeeping software?
Having a bookkeeper who knows the tools that you need means that there will be less issues with setup. For instance, you shouldn’t hire a Sage expert to work on your QuickBooks file, nor should you hire a QuickBooks ProAdvisor to focus on your PCLaw software. Almost every app has certifications, but some are more meaningful than others. Some certifications are simply there to provide images for bookkeepers and accountants to market themselves to new customers. Others are more in-depth.
Which bookkeeping service is right for my business?
KATA Accounting Solutions works with cloud-based creative, coaching, and consulting businesses. We use QuickBooks and Xero, which are designed for small businesses. Our accounting ecosystem is designed to optimize these types of businesses for growth and prosperity.
Want to know when to outsource bookkeeping? Read part two of this series now.
Need to understand why bookkeepers help your business? Read part one of this series today.
More posts in this series are coming in the future. Subscribe now for monthly posts.
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