Choosing a Bookkeeper: What to Look for and What to Avoid
Whether you're a small business owner, freelancer, or real estate professional, having the right bookkeeper can be the difference between financial clarity and constant stress. Bookkeeping isn't just about recording transactions—it's about building a system that gives you insight, confidence, and peace of mind. So how do you choose the right person (or firm) to manage your books?
Here are the top things to look for in a bookkeeper—and the red flags to avoid.
What to Look For:
1. Experience with Your Industry
Not all bookkeeping is the same. A bookkeeper who understands your business model, common expense categories, and industry-specific tools (like CRMs or payroll platforms) will save you time and money.
Example: Realtors have unique needs like tracking commissions, marketing costs, and mileage. If you’re in real estate, a bookkeeper who’s worked with agents or brokers will already know what to expect.
2. Use of Modern Accounting Software
Look for a bookkeeper who uses cloud-based tools like QuickBooks Online, Xero, or Wave. These platforms offer real-time access, clean reporting, and automation.
3. Clear Communication and Reporting
You should know how your business is doing at any time. Your bookkeeper should provide monthly reports (P&L, balance sheet, cash flow) and be able to explain them in plain English.
4. Positive Reviews or Referrals
Ask for references or check online reviews. A proven track record builds trust.
5. Transparent Pricing
Avoid surprises. Choose a bookkeeper who offers flat-rate or clearly defined hourly packages.
What to Avoid:
1. No Contract or Engagement Letter
Professional bookkeepers always provide written agreements outlining services, fees, and responsibilities. If someone won’t provide that, walk away.
2. Unfamiliar with Tax Basics
While bookkeepers aren’t accountants, they should understand how their work feeds into tax prep. If they don’t know what a Schedule C or 1099 is, that’s a red flag.
3. Overpromising Results
Bookkeeping is about accuracy and consistency, not magic. Be cautious of anyone who guarantees huge tax savings or says they can "fix everything overnight."
4. Poor Communication
If they take forever to respond during the inquiry phase, don’t expect better once you’re a client.