4 pitfalls to avoid when hiring bookkeeping services in New York City
November 21, 2021at4:00 PM
Accounting and bookkeeping may seem like simple tasks that you can do yourself in the initial phase of the business. However, as the business expands and the paperwork starts to pile up, crunching numbers and maintaining accurate financial records becomes more complicated.
Unless you have the wherewithal to staff a fully functional in-house department, the next best option is to hire professional bookkeeping services. Because of the importance of such a decision, it’s important to get it right from the start. The last thing you want is an outsourced bookkeeper that isn't a good fit for your business.
With that in mind, let’s walk you through the four biggest pitfalls to avoid when hiring professional bookkeeping services in New York City.
1. Not defining what you need
This is a huge, often costly mistake waiting to happen. When it comes to your business finances and tax obligations, you need to be explicitly clear on what you need from your bookkeeper or accountant. What kind of services are you expecting them to perform? Do you need them to create cash flow projections and forecasts? How often should they provide reports?
By taking the time to prepare a comprehensive job description, you’ll be able to avoid any confusion on the scope of work and deliverables, down the line. This invariably saves you from the frustration of working with the wrong person or company.
2. Hiring without verification
It’s the digital age and anyone with a good-enough knowledge in document processing can manipulate their details and fabricate certifications. Unfortunately, many business owners don’t know what skills and qualifications to look for in an accounting or bookkeeping service. Remember, whomever you hire is going to be dealing with your company’s financial records. Make sure they’ve got what it takes to get the job done in an efficient and transparent manner.
One of the best ways to gauge the competency of who you’re hiring is to cross-check with their previous clients. Check online for reviews about their services or ask the bookkeeper to furnish you with a list of their past clients. If possible, they should show you clients in a similar industry as yours, so you have full confidence in their ability to deliver tangible results for your business.
3. Overlooking soft skills
Sometimes business owners are all too eager to be done with the hiring search, so they start looking for shortcuts in the hiring process. This often results in them sacrificing soft skills in favor of technical abilities.
Yes, you’re not hiring the bookkeeper or accountant as a full-time staff, but they still need to be able to fit into your work culture. In addition to being competent with crunching numbers and ensuring your business’s compliance with tax regulations, they should have strong problem-solving and communication skills. This would make it easier to work with them and avoid issues arising from miscommunication.
4. Not taking advantage of the latest technology
Technology has dramatically changed the business landscape, especially with how transactions are recorded and how reports are generated. Advanced tools and systems now allow you to gain insight into your business financial records at the click of a button. More importantly, they allow work to be done faster and with more accuracy.
A bookkeeping service that still uses manual methods for accounting and tax preparations may not be a good fit for your business, or any other legitimate business for that matter.
Need professional bookkeeping services in New York City?
Vilardi & Company is a trusted accounting and bookkeeping service with over 20 years of industry experience. We understand just how challenging it can be for small business owners to find a reliable accountant that is committed to seeing their business succeed. Your search ends here. Vilardi & Company has got you covered. We are your accountant, bookkeeper, tax strategist, and even fractional Chief Financial Officer (CFO).
Talk to us about your business’s bookkeeping needs today. Call us at 917.848.0006 or fill out our contact form to get started.