How to Choose a Bookkeeper: 10 Questions to Ask Before You Hire

What work do you actually do

Some people who call themselves bookkeepers also do tax returns, payroll, or business advice. Some only record transactions. The first question to ask is what work they actually do, so you know what you are paying for.

A bookkeeper records your income and your costs. They categorize each transaction. They reconcile your accounts to the bank. They close the books at month end and send you reports. That is the core of the job.

If you also need payroll, ask whether they do it. If you also need a tax return, ask whether they prepare it. You may want one person for everything, or you may want a bookkeeper who hands clean books to your CPA. Both are fine. You just need to know what you are getting.

Do you do payroll too or only bookkeeping

Payroll and bookkeeping are close cousins, but they are not the same. Bookkeeping is the monthly record of your business. Payroll is the work of paying your people, calculating their taxes, and filing the forms.

Some bookkeepers do both. Some do only one. If you have employees, ask whether payroll is part of the work or a separate service. You do not want to find out at the first of the month that your bookkeeper does not run payroll.

We do both. Payroll is one of our two services, along with monthly bookkeeping. We tell you up front so there is no surprise.

What software do you work in

Bookkeepers work inside accounting software. The most common are QuickBooks Online and Xero. Some work in Wave, FreshBooks, or Zoho Books. Some work in desktop software.

Ask which one your bookkeeper uses. If you already use one, ask whether they know it well. If you do not use one yet, ask what they recommend for a business your size.

We work in QuickBooks Online and Xero. We are QuickBooks Online Accountants, called QBOA. That means we know the software inside out, and we can get you set up the right way from the start. You can read more on our bookkeeping service page.

How do you get access to my books

A bookkeeper needs to see your bank and your software. The question is how. Some ask for your bank password. Some use read only access through a secure connection.

Read only access means the bookkeeper can see your transactions but can not move your money. Your bank password stays with you. That is the safe way.

Ask how they connect to your bank. Ask whether they ever need your password. The answer should be no. We use read only access, and we never ask for your bank password.

How often do you close the books

Some bookkeepers close the books every month. Some do it once a quarter. Some do it once a year, right before tax time.

Monthly is best. When the books close every month, your numbers stay current. You can see how the month went while it still matters. When the books close once a year, you find problems months after they happened.

Ask when the books close. Ask what day of the month. We close by day 10, so your numbers are ready early in the month.

Who does the work

Some bookkeepers do the work themselves. Some pass it to a team. Some use software that does most of it and only check the end.

Ask who touches your books. Ask whether you get one person or a rotation. One dedicated bookkeeper learns your business. They remember your vendors and your patterns. A rotation means you explain yourself every month.

We give each client one dedicated bookkeeper. They learn your business and keep it the same way every month.

What reports do I get each month

A good bookkeeper sends you reports every month. The core three are a profit and loss statement, a balance sheet, and a cash summary.

The profit and loss shows what you earned and what you spent. The balance sheet shows what you own and what you owe. The cash summary shows where the cash came in and where it went out.

Ask what reports you get. Ask when they arrive. We send all three by day 10, every month.

What happens at year end

At year end, your books need to be ready for your CPA. That means the year is reconciled, the accounts match the bank, and the reports are clean.

Some bookkeepers hand the books off. Some also prepare the tax return. Ask what happens at year end so you know who does what.

We send you, or your CPA if you ask us to, the year's profit and loss and balance sheet. If your CPA has questions about the books, we answer them. We do not prepare income tax returns. You can read more about the handoff on our bookkeeping service page.

Do you do my tax return too

This one catches people. A bookkeeper and a tax preparer are not the same job. Some firms do both. Many do only one.

If your bookkeeper also does your taxes, that can be convenient. If they do not, you hand the clean books to a CPA. Ask up front so you know.

We do bookkeeping and payroll. We do not prepare income tax returns. We keep your books clean and hand them to your CPA for the rest.

Is there a long contract

Some bookkeepers want a year long contract. Some work month to month. A long contract is not a sign of quality. It is just a lock in.

Ask how you stop the work. Ask how much notice you give. Month to month with a short notice is the flexible way.

We work month to month, with 30 days notice to stop. There is no long contract. We start with a free 20 minute call, and we reply with a fixed quote in one business day.

A situation we clean up

The messy year handed to us

A business owner has a year of loose receipts and a bank account that was never reconciled. The books are months behind. The CPA needs clean numbers, and the owner does not know where to start.

Here is how we handle it. We sort the receipts and the bank lines month by month. We categorize each one. We reconcile every account to the bank. We close each month in order, from the oldest to the newest. When we are done, the owner has a full year of clean books ready for the CPA. We set up a simple monthly routine so the next year stays clean from the start.

How we do it

We do monthly bookkeeping and payroll. We work in QuickBooks Online and Xero, and we are QuickBooks Online Accountants, called QBOA. Each client gets one dedicated bookkeeper who learns your business.

We categorize and reconcile in the first week. We send you one list of questions on day 8. We close your books by day 10 and send a profit and loss statement, a balance sheet, and a cash summary. We use read only access, and we never ask for your bank password.

We serve small businesses in Rancho Cucamonga, Ontario, Fontana, San Bernardino, and across the Inland Empire and the country. There is no long contract. It is month to month, with 30 days notice to stop.

Mistakes we fix

• Books that sit months behind with no one closing them
• Accounts that were never reconciled to the bank
• Transactions with no category, piling up
• Reports that never got sent to the owner
• A year of loose receipts with no order

What we do

We do two things: monthly bookkeeping and payroll. For bookkeeping, we categorize and reconcile in the first week, send one list of questions on day 8, and close the books by day 10. You get a profit and loss report, a balance sheet, and a cash summary. We start with a free 20 minute call and reply with a fixed quote in one business day.

Common questions

What is the difference between a bookkeeper and a CPA? A bookkeeper records your income and costs and reconciles your books every month. A CPA takes those clean books and prepares your tax return. We do the bookkeeping and hand the clean books to your CPA.

How often should my books be closed? Every month. Monthly closing keeps your numbers current and catches problems early. We close by day 10.

Do I need to give you my bank password? No. We use read only access through a secure connection. Your bank password stays with you.

Do you do my tax return? No. We do bookkeeping and payroll. We keep your books clean and hand them to your CPA for the taxes.