Top 10 Bookkeeping Questions to Ask Before Hiring a Bookkeeper
- Cost Construction Accounting
- Jun 2, 2023
- 5 min read
Updated: Nov 19
Ready to make your financial operations easier? Maybe you're considering hiring a bookkeeper or outsourcing your bookkeeping needs. We know this can feel like a big decision; it is normal to have loads of questions. Don't worry! we've got your back.
We've compiled a list of crucial questions to ask a bookkeeper that will help you evaluate their expertise, communication style, and familiarity with construction bookkeeping practices. Finding the right bookkeeper can save you time, reduce errors in your financial records, and help you stay organized with your bookkeeping tasks.
Did you know? Outsourcing bookkeeping services often costs significantly less than hiring an in-house bookkeeper, while providing access to a team member with extensive experience and specialized knowledge. This can be a game-changer for small business owners looking to improve their cash flow and financial reporting accuracy.
Comparison of In-House and Outsourced Bookkeeping Costs in the United States
​ | In-house Bookkeeper | Outsourced Bookkeeping |
Annual Salary | $42,000 - $46,000 | N/A |
Recruitment Costs | $4,000 - $6,000 | $0 |
Training Costs | $1,000 - $2,000 | $0 |
Hardware/Software | $1,000 - $3,000 | $0 |
Employee Benefits | $10,000 - $15,000 | $0 |
Office Space & Utilities | $2,000 - $4,000 | $0 |
Total Annual Cost (Range) | $60,000 - $76,000 | *$6,000 - $30,000 |
* $6,000 - $30,000 per year equates to about $500 - $2,500 per month. Actual costs vary based on specific bookkeeping services and pricing structure.
Top 10 Bookkeeping Questions to Ask Before Hiring a Bookkeeper
1. What is Your Experience with Construction Bookkeeping?
Construction bookkeeping has unique requirements, including managing job costing, WIP (Work-In-Progress) schedules, and subcontractor accounts. Ask about their industry-specific experience and familiarity with construction financial transactions. At CCA, our bookkeeping team has extensive experience in construction accounting, ensuring your financial records are accurate and up to date.
2. How Do You Handle Job Costing and WIP Schedules?
Effective job costing and WIP management are essential for maintaining a healthy cash flow and profitability. Inquire how the bookkeeper tracks these elements and integrates them into financial reports like balance sheets and profit and loss statements. The Construction Financial Management Association (CFMA) emphasizes the importance of these practices for construction businesses.
Now, about us at CCA. We have a team of construction bookkeeping pros. Their expertise? WIP schedules and job costs You can count on us to handle your construction accounting needs. Together, we can make every project a financial success.
3. What is Your Fee Structure?
Understanding the pricing structure upfront helps avoid unexpected costs. Ask if they offer a fixed monthly fee or hourly rates and what bookkeeping services are included, such as payroll services, tax preparation assistance, or bank account reconciliations. Transparency in pricing allows you to budget effectively and save time managing financial processes.
4. What Software and Tools Do You Use?
Compatibility with your existing accounting software is essential for seamless bookkeeping practices. Confirm if the bookkeeper uses industry-standard accounting software like Sage 100 Contractor, QuickBooks, or tax software compatible with your business systems. Efficient use of accounting software improves accuracy and provides real-time insights into your financial health.
5. How Can You Help If My Business Is Behind in Bookkeeping?
If your financial records are not current, ask how the bookkeeper plans to catch up and organize your financial documents. A skilled bookkeeper will create a clear plan to reconcile bank statements, update accounts payable and receivable, and ensure all financial transactions are accurately recorded.
6. What Can You Do to Improve My Financial Management?
A proactive bookkeeper should offer insights to improve your financial management, such as optimizing cash flow, reducing errors in bookkeeping tasks, and providing timely financial reports. Ask how they can assist in creating budgets, forecasting, and generating financial statements that support your business growth.
7. How Do You Ensure the Security and Confidentiality of Financial Information?
Data security is essential when handling sensitive financial information. Inquire about the bookkeeper's security measures, encryption practices, and internal controls to protect your financial data. At CCA, we prioritize safeguarding your financial records with strict protocols.
8. Can You Assist With Tax Preparation and Compliance?
Tax preparation and compliance can be complex, especially in construction. Ask if the bookkeeper collaborates with accountants or an accounting firm to ensure your tax filings are accurate and timely. Their familiarity with tax software and regulatory updates helps keep your business compliant and avoids penalties.
9. How Will You Communicate and Report Financial Information to Me?
Clear communication is vital for a strong working relationship. Discuss how often you will receive financial reports and updates, the format of these reports, and their approach to explaining complex financial information in an understandable way. Regular communication helps you stay informed and make better business decisions.
10. How Can You Help My Business Grow?
Beyond bookkeeping, a great bookkeeper acts as a strategic partner. Ask how they can provide examples of identifying opportunities, improving profitability, and supporting your business's long-term goals. Their expertise can help you create financial strategies that foster growth and stability.
Make the Right Call with These Bookkeeping Questions
Choosing the right bookkeeper for your construction business is a critical decision. It's not something you rush into. You need to ask the right questions. With the above bookkeeping interview questions, you're armed with the information you need. It will guide you in making the best decision for your unique business needs.
But remember, the right bookkeeper is more than a service provider. They are your financial ally. They help you navigate through the complex world of financial management. At Construction Cost Accounting, we see ourselves as partners in your business's growth. We're committed to your success.
Are you ready to elevate your construction business's financial management? Then it's time to consider outsourcing. Outsourcing bookkeeping services offers expertise and peace of mind. And you get to focus on what you do best building and growing your construction business.
We understand the unique financial needs of the construction industry. Our team of experts is ready to handle your bookkeeping tasks, leaving you free to focus on your core business.
In Conclusion
Asking the right bookkeeping questions when hiring will save you time and money. Don't settle for less. Get a bookkeeper who understands construction financial management. You'll be happier and wealthier.
Start your journey towards better financial management today with CCA. We are waiting to make your financial management a breeze. Take the leap, and let's achieve success together.
Don't hesitate to contact us or schedule 30 minute consultation to discuss your needs. We're here to help you alleviate your bookkeeping stress. This allows you to focus on running and growing your construction business.
