Seven Mistakes Business Owners Make When Hiring a Remote Bookkeeper

Here’s a list of common mistakes we see small business owners make time and time again, along with our best advice on how to avoid them.

Hiring a friend that kind of, sort of knows bookkeeping

There isn’t anything inherently wrong with working with friends, as long as you hire a friend with accounting experience that translates to what your small business needs. We’ve seen small business owners hire the first friend that offers bookkeeping, only to find out that this friend doesn’t have any other small business bookkeeping clients.

Another common frustration is that folks hire friends at a discounted friend rate and get discounted services. When this happens, they don’t feel like they can say anything about the quality of service because their friend is helping them out and giving them a deal.

The best way to avoid this mistake is to hire a professional bookkeeper (or agency!) who takes their business seriously, cares about the client experience, and delivers their services with timeliness and professionalism.

Hiring a bookkeeper and expecting accounting or CFO services

Your business’ financial team will have various roles to fill by multiple players. For example, a web designer might not provide brand development, like a bookkeeper may not offer tax filing or consulting services. While some firms provide these services in a bundle, you might find that multiple people on a team provide different services.

During your initial conversations with potential bookkeepers, ensure you understand their roles and responsibilities and the limits to their services. 

Hiring someone because they were the cheapest option 

Not every business owner recognizes the value of an excellent bookkeeper. I’ve met many business owners who have gone for years without a bookkeeper, only to have frustrating tax seasons. These folks may fixate on bad experiences without realizing the potential for good ones. They may subconsciously devalue something valuable and vital to understanding their business. They may not want to spend money on something that has been a frustrating pain point in their life and business.

There is nothing wrong with being frugal with your funds. Make sure you’re not penny wise and pound foolish. Price is not the only factor when choosing a bookkeeper. Consider industry experience and expertise, which create efficiencies that could save you money and time. Also, consider the experience and value of working with an organized, communicative, proactive, and efficient bookkeeper. 

Not letting the bookkeeper do the bookkeeping

If you’ve been doing the bookkeeping for your business, you might have gotten used to that level of control. Sometimes letting go of it can be challenging. But if you want to free yourself up to work on other essential aspects of your business, it’s important to delegate work that’s outside of your zone of genius.

When you hire a bookkeeper, let them do the books. Instead of undermining them by redoing their work, schedule a time to have a conversation where you can address your expectations and get on the same page with workflow. Would you ever hire a plumber to fix your sink only to box them out, make them watch you try to fix it, or undo their work once they're gone? 

Expecting that a remote bookkeeper can do their job without your input

Some small business owners expect everything without having to do anything. They won’t provide invoice details, like payment terms, contact information, and billing info, only to wonder why their bookkeeper didn’t send invoices out. Or they’ll feel frustrated that their bookkeeper didn’t magically know that an Uber Eats charge was for a production meeting for a new project rather than an ongoing production.

Working with a bookkeeper, especially in a remote setting, requires the lines of communication to be open. 

You'll need to engage with your bookkeeper to ensure that deposits are matched to their corresponding invoices and that expenses are billed to the right job and organized to the correct category.

Not engaging with your bookkeeper regularly

Some small business owners will hire a remote bookkeeper but will go several months before ever opening a financial report sent to them or scheduling a meeting to review their statements. Hiring a bookkeeper is like getting a gym membership: you have to use as intended in order to see results.

The best way to leverage a bookkeeping service is to engage with your bookkeeper regularly. Set up a monthly review with your bookkeeper. Practice reading your financial statements and getting engaged with your business’ finances. Remember, as a business owner, freelancer, or self-employed individual, you must tend to and care for all aspects of your business. Working in your business is just as important as working on your business.

Not leveraging your bookkeeper’s expertise

Let’s say you’re an interior designer and hired a bookkeeper specializing in interior design bookkeeping and accounting. This bookkeeper recommends opening up additional accounts to help manage the money coming into the business. They want a more straightforward way for you to understand your design fees, cash for client purchases, and sales tax funds. 

As the business owner, you decide how you want to run your business, including what processes and procedures you want to implement. But it’s important to realize that your bookkeeper’s insight stems from seeing and being deeply involved in the daily inner workings of various businesses. In other words, just as you’re an expert in your field, with institutional knowledge of the work you do all day, every day, so is your bookkeeper.

What’s Hell, Yeah, Bookkeeping?

We're a remote bookkeeping agency that serves production companies, marketing agencies, creative agencies, event producers, interior designers, and other creative businesses. You’ll get a dedicated bookkeeper supported by our team of knowledgeable small business experts when you work with us. 

We’re here to take to make bookkeeping better. Reach out for a quote today!