Did you know that bookkeepers in the U.S. make about $38,000 to $47,000 yearly? The average annual salary, however, is nearly $43,000.
So if you hire a full-time bookkeeper for your firm, expect to pay something within that range. That’s a lot of money, but it can go higher if you commit mistakes with picking bookkeeping services.
But what exactly are those errors you should know of?
We’ve listed them below and shared tips for avoiding them, so read on.
1. Picking a Certified Public Accountant
A certified public accountant (CPA) is a licensed accounting professional. In the U.S., there are only about 665,000 active CPAs as of August 2022. Licensing requires applicants to pass a rigorous state exam.
A CPA license is a much higher designation than a bookkeeping certification. Still, CPAs can offer options for bookkeeping services. However, most don’t, as they specialize more in long-term accounting strategies.
Certified bookkeepers are experts in day-to-day financial tasks. For example, their services often include managing business expenses daily. They also balance ledgers, perform data entry, take inventory, and create reports.
Because of those differences, CPAs charge more than bookkeepers. So if you make the mistake of hiring a CPA for bookkeeping, expect to pay more.
That’s easily avoidable, though, as CPAs often publicize their licensure status. You’ll often see this information, including their license numbers, all over their websites.
2. Choosing Non-Certified Bookkeepers
Anyone can provide bookkeeping services, as bookkeepers don’t need formal certification. Still, the most reputable ones opt to get certified through the NACPB, AIPB, or both. These certifications prove their knowledge, skills, ethics, and experience.
So when outsourcing for bookkeeping tasks, go for NACPB- or AIPB-certified providers.
3. Failing to Do Background Checks
A 2022 study found over half of the polled organizations experienced fraud in the past two years.
Many types of fraud exist, most of which are financial. A perfect example is deceptive or inaccurate bookkeeping data. Unscrupulous individuals posing as bookkeepers often commit these acts.
So before hiring the first bookkeeping firm you see online, run a background check on them first. You can search the web using the company’s name plus the word “complaint” or “fraud.”
Reading online reviews can also give you an idea about what other clients say about them. If there are too many negative comments, take those as a red flag.
4. Forgetting to Check Areas of Expertise
You may need specific bookkeeping software depending on your business’s particular needs. Mastering software takes time, so hire someone with extensive experience in its use.
Let’s say you run a real estate property management firm. If so, look for a bookkeeper specializing in TenantCloud, Buildium, or AppFolio consulting.
Avoid These Mistakes With Picking Bookkeeping Services
Mistakes with picking bookkeeping services can lead to the downfall of your firm. They can cause you to overspend, have erratic reports, or become a fraud victim.
So, do your due diligence when choosing a bookkeeping service. Even if you don’t need a CPA, you should still hire a certified bookkeeper. They must also have a stellar history and provide services that meet your firm’s needs.
Ready for more business financial tips and tricks like this? Then read our guide on how to choose payroll services!