Bookkeeping may be a very lengthy and time-consuming process, but it is a mandate for businesses all over the world. A company cannot dream of flourishing without proper bookkeeping and accounting. It is essential for a bookkeeper to maintain and to produce appropriate transaction records at the required times.
It is necessary that you hire a proper and professional bookkeeper as bookkeeping is the basis of all business activities and without bookkeeping there would be no records of the transactions done by the business. Some skills and qualities must be checked before hiring a bookkeeper.
Qualities Needed in a Bookkeeper
Bookkeeping may sound boring and a time-intensive process to you but if not done correctly, the business can face heavy losses and ultimately shut down. Before hiring a bookkeeper, you must check whether the bookkeeper possesses certain qualities or not.
A bookkeeper should have expert knowledge of bookkeeping. There is a lot of technical words that untrained people would not understand. It is not necessary that the bookkeepers have a degree of Certified Public Accountant (CPA) but should understand the basics of bookkeeping. Before hiring a bookkeeper, a complete and thorough check of his accounting and bookkeeping knowledge should be done. If scrutiny is done, you can get a bookkeeper who will be suitable for your business.
This is a fundamental requirement for a bookkeeper. Many times the bookkeeper assures us that everything is fine with the books of the company, but the reality is entirely different. Even a small mistake while recording the transactions may spell disaster for the company. It is the duty of the bookkeeper to inform the management of any discrepancy or error in the books of the company.
3.Keeping Calm during Adversity
Every business goes through highs and lows in the long run. It is in this time that the skills, expertise and sense of calmness are tested. If the bookkeeper remains calm and performs the proper analysis of the situation, then the bookkeeper would be very useful for the business in the long run.
If a bookkeeper gives us the feeling that the business can rely on his presence 24x7, then the bookkeeper should be held on to. He should always be accessible to the business in case anyone wants to express any concerns or issues. This quality is a must in a person providing outsourced accounting and bookkeeping services.
The financial accounting environment is very dynamic and keeps on continuously changing. A bookkeeper must always be updated with the latest rules and regulations and change his workings according to these rules. If he is unable to change with time, in such a case, the bookkeeper becomes obsolete, and the business faces heavy losses.
In today’s world, not being computer literate can have enormous repercussions for the bookkeeper and in the long run for the business. With advancements in technology, most of the work is now done online. There is also an increase in the number of state of the art accounting and bookkeeping software. A bookkeeper must be ready to spend time in front of a laptop and should understand how to operate the different accounting and bookkeeping software.
It is of utmost importance that the person hired has a subscribes to the theory of professionalism. If the bookkeeper is not professional enough, it is possible that the business may have to face the consequences. The management must discuss their vision for the future of the company with the hired bookkeeper.
Important Points for the Bookkeeper
Once you hire a bookkeeper, he should understand what the vision of the management is for the company. He should adequately understand that what is the expectation of the management from the bookkeeper. There are certain things that you should discuss with your bookkeeper and discover a course of action that the bookkeeper should take for the growth of the business.
Duplication of Work
The bookkeeper should have proper records of all the transactions conducted by the business. This is to avoid double entry of a single transaction done. If there is a double entry for one transaction, then there would be an imbalance in the cash flow.
The bookkeeper should be clear how he will manage the present cash flow and what steps will he take to increase the present operating cash flow in the business. He will have to understand the workings of the business to give out the correct financial advice.
Proper records of all the employees on the payroll should be maintained by the bookkeeper. Any mistake in the record will lead to a disgruntled employee with low motivation to work.
To file taxes in a smooth and easy manner, all the related documents must be kept ready. The bookkeeper must also discover new ways to save taxes and file taxes on time.
It should be made absolutely clear that the management of the company and the hired bookkeeper are on the same page. If everyone will have the same vision for the company, then the company is destined to flourish.
The accounting and bookkeeping services of JAXA auditors can help your company to grow and achieve new heights of success. JAXA has teams of professional and experienced accountants and auditors who will nurture your company and will assist in its development. We also many other services such as Tax services, payroll services etc. For more details on the various services we provide do contact us – we’d be happy to help.