| While I'm a strong advocate of hiring virtual | | | | month ends - give her a few days after that |
| assistants, there are two things that no | | | | date to reconcile your accounts and produce |
| entrepreneur should ever fully delegate: marketing | | | | reports. At a minimum, you want to see a profit |
| and bookkeeping. The marketing and the | | | | & loss, balance sheet and cash flow |
| bookkeeping of your business can easily make or | | | | statement. |
| break you (just think "new" Coke and Enron). | | | | Take the time to review the reports so you can |
| That said, if bookkeeping is not your forte, hire | | | | spot any irregularities before they blossom into |
| someone to do it - you will save so much in | | | | problems. Not sure how to read a cash flow |
| frustration - just be sure to keep your fingers in | | | | statement? Get a check/electronic funds transfer |
| the books. | | | | (eft or "auto debit") transaction detail instead. It |
| If you choose to hire a bookkeeper, keep the | | | | will help you see where the cash is going. |
| following in mind: | | | | 5. She must know accounting terms and still |
| 1. Get QuickBooks. | | | | speak "English". |
| For ease of use, I highly recommend using | | | | Your bookkeeper needs to know the difference |
| QuickBooks and hiring a QuickBooks ProAdvisor. | | | | between assets, liabilities, income, expenses and |
| QuickBooks ProAdvisors have taken certification | | | | equity and be able to provide your accountant |
| exams to insure that they know the system. I | | | | with the necessary data upon request. At the |
| have used QuickBooks both for myself and my | | | | same time however, if you are not "numbers |
| clients since 1996 and highly recommend it for its | | | | oriented", she also needs to be able to explain the |
| ease of use/understanding. | | | | financial statements to you in plain English. |
| The online version is great in that you can see | | | | 6. She must be trustworthy. |
| the latest version of your books at any time and | | | | Hiring someone to keep track of your |
| eliminate the annoyance of emailing files back and | | | | bookkeeping requires a level of trust between |
| forth and wondering who has the latest version. | | | | you both. You need to feel comfortable that she |
| 2. She must see both the forest AND the trees. | | | | will keep track of your information and maintain |
| You want your bookkeeper to be detail-oriented | | | | your confidentiality. At the same time, if she pays |
| AND to see/understand the big picture. She needs | | | | your bills and has access to your bank accounts, |
| to know what happens consistently - every | | | | you must also trust that she will not abuse that |
| month - and update your books without bothering | | | | privilege. And make no mistake, it is a privilege to |
| you for items she should know about. | | | | have someone (particularly in a virtual relationship) |
| At the same time, she needs to be astute | | | | trust you with their finances, their checkbook and |
| enough to see the larger picture and warn you of | | | | their business. |
| any impending problems before they happen. If | | | | Good business sense demands that you protect |
| you purchase a piece of equipment, she should | | | | yourself "just in case". I highly recommend that, in |
| know how to properly enter it into your | | | | addition to a confidentiality agreement, you insure |
| bookkeeping software to avoid problems - and | | | | that your bookkeeper is bonded and you get a |
| therefore save time and money - with your | | | | copy of that bond. |
| accountant (and the IRS) later on. | | | | 7. She must have great communication skills. |
| 3. She must know your industry. | | | | If your bookkeeper will be communicating with |
| You don't want to have to train your bookkeeper | | | | your clients and vendors, she must represent |
| on your industry language, standard industry | | | | your business as you would. Whether virtual or |
| income or expense categories or other basics. | | | | in-house, it's critical that your bookkeeper be a |
| The more up-to-speed she is, the faster she can | | | | positive force that further enhances relationships. |
| hit the ground running and the sooner you will | | | | The question of money can, at times, be a |
| have good data. If she doesn't know your | | | | sensitive matter. You need someone who |
| industry however, be sure to give her a rundown | | | | recognizes that and communicates appropriately. |
| of lingo and how you refer to your customers | | | | Always remember - these are your books and |
| clients/tenants in order for you to get the most | | | | this is your business. While you may hire someone |
| meaningful reports out of the gate. | | | | to manage the details of tracking your finances, |
| 4. She must provide timely reporting. | | | | and should do so if this is not one of your |
| In hiring your bookkeeper, insure that you put in a | | | | strengths, the ultimate responsibility for oversight |
| provision for when you want to see monthly | | | | is yours. Michael E. Gerber of the "E-myth" series |
| financials. The date will depend on when your bank | | | | said it best: "Delegate, don't abdicate. |