Did you know that poor planning is one of the most common financial issues that business owners face? As you might assume, it’s important to be organized and manage your finances properly in order to stay profitable. If you are a property manager, it is especially important for you to understand what to look for when outsourcing to a bookkeeping service.
Let’s take a closer look at everything you need to know when looking for a professional bookkeeper.
Expertise in the Property Management Industry
This is perhaps the most important factor to consider when choosing a bookkeeping service. A bookkeeper should have experience in the property management industry and be able to understand how rental rules, regulations, and taxes apply.
Not every bookkeeper will possess the same level of expertise. Make sure you ask any potential candidates about their knowledge in the field before making your decision.
Software Knowledge
Another thing to consider is the bookkeeper’s software knowledge. Most bookkeepers use a variety of programs and accounting software in order to do their job effectively.
Make sure you ask potential candidates about what types of software they are familiar with, as well as how often they update their skills in this area. This is especially important if you are using a particular program in your business. Keep this in mind moving forward.
Reliability and Accuracy of Financial Records and Reporting
The most important job of a bookkeeper is to ensure that your financial records and reporting are accurate and up-to-date.
The best bookkeepers will be able to provide reliable and timely information so that you have a clear understanding of your finances. Look into their process for ensuring accuracy when it comes to financial records and reporting.
You should also be able to find information on the process on their website.
Experience with State and Federal Tax Reporting
It should come as no surprise that a bookkeeper should be knowledgeable about state and federal tax reporting, as well. You need to make sure that all potential candidates have experience in this area so you can rest assured that your taxes are reported correctly.
Research their knowledge of other relevant laws and regulations. This is the only way to ensure that you are compliant with the law.
The last thing he wants is to find yourself dealing with tax issues. This could include fines, fees, and similar penalties.
Knowledge of Accounts Payable and Receivable
Professional bookkeepers should understand accounts payable and receivable. They need to be able to track all incoming and outgoing payments in a timely manner, as well as any outstanding invoices or deposits.
Ask potential candidates about their process for managing accounts payable and receivable so you know that your money is safe. If they don’t seem knowledgeable, you should search elsewhere.
Working with an inexperienced bookkeeping service isn’t guaranteed to provide poor results. However, you are taking a risk by doing so.
Flexibility and Scalability
As your business grows, you may need additional services from your bookkeeper. Make sure that the candidate you choose is willing to scale up their services as needed and offer flexible payment options. This will allow them to continue to meet your needs as you expand.
In some cases, a bookkeeping service that cannot scale could prevent you from growing your business.
Strong Communication Skills
Strong communication skills are a must for any bookkeeper. You need to be able to rely on your bookkeeper to keep you informed of important financial developments and offer advice in a timely manner.
Pay close attention to their communication style and what kind of response times they offer when providing services. This will provide valuable insight into what you can expect.
Friendly and Responsive Customer Service
It’s crucial to find a bookkeeper that offers friendly and responsive customer service.
After all, you are entrusting them with an important part of your business. Make sure that they are willing to answer any questions or concerns you may have in a timely manner so you can be confident that your financial affairs are in good hands
Range of Different Services
Different property management companies will require different services from their bookkeepers.
Some may need help with payroll and employee benefits, while others might require more specialized services such as legal or tax advice. You should always take the time to figure out what services they offer. This could mean the difference between whether or not you get the results you need.
Competitive and Transparent Pricing Structures
Finally, make sure that you understand the pricing structures of different bookkeepers. You need to be able to trust your bookkeeper and not have any surprises when it comes to fees and prices. Look into their pricing structure, as well as what kind of discounts they may offer for larger projects or long-term agreements.
This will ensure that you know exactly what you’re paying for. From there, you can budget appropriately.
Hiring a Bookkeeping Service Is Easier Than It Seems
Although it might seem complex at first, the process of selecting a bookkeeping service doesn’t have to be complicated. With the right information and research, you can find an experienced and reliable bookkeeper that meets your needs.
This will help ensure you get started on the right track. Looking for more information on how we can help? Feel free to get in touch with us today to see what we can do.
