How to Hire a Bookkeeper

Hiring a bookkeeper can be one of the most impactful decisions you make for your accounting firm or business. The right bookkeeper can streamline your financial processes, provide invaluable insights, and ultimately, save you time and money. In this article, we’ll dive into everything you need to know about hiring a bookkeeper, from understanding their role to the qualifications you should be looking for.

Why Hire a Bookkeeper

Whether you’re a small business owner or run a larger corporation, managing finances can be overwhelming. Inaccurate financial records can lead to detrimental consequences, such as poor cash flow and non-compliance with tax laws. By hiring a bookkeeper, you bring in a professional trained in maintaining accurate financial records. They can also:

Save you time so you can focus on core business activities
Help maintain cash flow and budgeting
Ensure you’re complying with all relevant laws and regulations
Provide financial reports that can guide business decisions

What Does a Bookkeeper Do?

A bookkeeper plays an essential role in maintaining, verifying, and recording financial transactions for a company. They handle day-to-day accounting tasks such as performing data entry, managing accounts payable and receivable, processing payroll, and preparing financial reports. Other duties include:

Recording daily financial transactions
Reconciling bank accounts
Preparing financial statements like income statements and balance sheets
Assisting with tax preparation and compliance
Budgeting and financial forecasting

Highest Education Level

Bookkeepers offer the following education background

Bachelor's Degree (45.3%)

Master's Degree (15.9%)

Associate's Degree (15.0%)

High School or GED (13.1%)

Vocational Degree or Certification (7.7%)

Some College (1.9%)

Doctorate Degree (0.6%)

Some High School (0.4%)

Qualifications / Skills

The following top skills are often required or desired to land a bookkeeper position

Intuit Quicken, Full Charge Bookkeeping, Trial Balance, Sales Tax Reporting, Xero, Sage 100 ERP, QuickBooks Enterprise, Bill.com, Year End Closing, Payroll Taxes, Journal Entries, Accounting Software, Balance Sheets, Financial Operations, General Accounting

Average Work Experience

Here's a breakdown of the years of experience offered by bookkeepers

Less than 1 year (29.7%)

4-6 years (24.0%)

2-4 years (22.2%)

1-2 years (21.3%)

None (2.5%)

6-8 years (0.3%)

Qualifications Needed to Be a Bookkeeper

While there’s no required certification to become a bookkeeper, some candidates may have a certified bookkeeper designation the American Institute of Professional Bookkeepers or the National Association of Certified Public Bookkeepers. Other candidates may have their certified public accountant (CPA) license.

The level of experience of bookkeepers on iHireAccounting is evenly split from 0–6 years, but some job seekers will have occupied roles such as accounting clerk, accounts receivable clerk, or administrative assistant before becoming a bookkeeper. These positions provide the necessary hands-on experience with financial record keeping and reporting, which is crucial in successfully performing the duties of a bookkeeper.

Productivity, attention to detail, and a solid understanding of basic accounting principles are crucial skills for this role. Additionally, a bookkeeper should have strong analytical skills to interpret and present financial data accurately.

When hiring a bookkeeper, look for these other qualifications:

Educational Background: At a minimum, a high school diploma is required, although many bookkeepers hold associate or bachelor’s degrees in accounting or a related field.

Software Skills: Familiarity with bookkeeping software like QuickBooks or Xero is usually a must.

Communication Skills: Bookkeepers should be able to communicate effectively, especially when it comes to explaining financial terms to non-experts.

Attention to Detail: Given that they will be handling sensitive financial data, meticulous attention to detail is critical.

However, this can go up for those with more experience or additional certifications, or your location. To see the average bookkeeper salary in your area, use iHire’s Salary Research Tool.

Bookkeeper Job Description Template

When writing a bookkeeper job posting, it’s important to include all the basics of what makes a great job ad. You should have a simple job title (no more than three words is ideal), information about your company culture, and any notable benefits and perks. Use this sample job description template to get you started when hiring a bookkeeper:

Bookkeeper

[Your Company Name], a leading accounting firm based in [Location], is seeking a dedicated, detail-oriented Bookkeeper to join our fast-paced team. With a strong commitment to client satisfaction and a reputation for excellence, we offer a supportive work environment and significant opportunities for professional growth.

The Bookkeeper will be responsible for maintaining accurate and up-to-date financial records, including daily transactions, account reconciliations, and financial statement preparation. The ideal candidate will have a strong understanding of bookkeeping practices, excellent attention to detail, and the ability to work both independently and collaboratively.

Key Responsibilities

Record daily financial transactions, including purchases, sales, and receipts
Reconcile all bank and credit card accounts
Manage accounts payable and accounts receivable
Prepare monthly, quarterly, and annual financial statements
Assist in budgeting and financial forecasting
Ensure compliance with local, state, and federal tax requirements
Collaborate with the accounting team to improve and streamline financial processes

Qualifications

High school diploma or equivalent; associate degree in accounting or related field preferred
Certified Bookkeeper designation is a plus
A minimum of 2 years of experience in bookkeeping
Proficient in bookkeeping software such as QuickBooks or Xero
Strong communication skills, both written and verbal
Excellent attention to detail and organizational skills
Ability to handle confidential information discreetly

Salary and Benefits

Competitive salary based on experience, with the opportunity for performance-based bonuses
Health, dental, and vision insurance
Retirement plan with company matching
Paid time off and holidays

Interview Questions to Ask a Bookkeeper

When you’re in the process of hiring a bookkeeper, asking the right questions during the interview can be crucial. Consider these:

Can you describe your experience with bookkeeping software?
How do you handle reconciling accounts?
What steps do you take to ensure accuracy in your work?
Can you provide an example of a financial report you’ve generated and explain its key components?
How do you manage confidential information?
Describe a time when you helped improve a financial process.
What are the most important financial metrics you track and why?

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