Hiring a bookkeeper can be daunting and scary for small and even medium-sized businesses. While interviewing a bookkeeper or a bookkeeping company, most business owners often ask the wrong questions. Thus, the bookkeeper or bookkeeping firm are unable to get a full grasp of the needs of the business. If you’ve been through many firms or if you’re new at this, here are some interview questions that will allow you to get to hire a bookkeeper or bookkeeping company.
Question 1: Which is better for business management – accrual or cash basis reporting?
Choose a bookkeeper or a bookkeeping agency that will tell you that while accrual basis bookkeeping offers better financial reports, cash basis is commonly preferred for taxes. Professional bookkeepers keep financial statements on accrual basis in order to manage reports. While the tax accountant can do the adjustments for cash basis taxes. If a bookkeeping company or bookkeeper tells you about his experience in the field and not give you such answer, then you should shy away from said bookkeeper.
Question 2: What is a balance sheet is or what is the balance sheet equation?
You know you’ve met a good bookkeeper if the one you’re interviewing explains that the balance sheet contains assets, equity and liabilities. Knowledge in this area is important for anyone who you will expect to give you accurate financial reports. Typically, a bookkeeping company will tell you that the equation is ‘Assets = Liabilities + Equity’. However, not many can explain it in words. If this happens, then ask for a description of asset and liability account.
Question 3: Rank Sales, Teamwork, Quality, Integrity, Profitability and Service according to importance
While there is no right or wrong answer to this one; however, it should tell you if the bookkeeping company you’re interviewing is aligned with your business culture. In addition, it will also help demonstrate the candidate’s critical thinking skills. Ask the interviewee to justify his or her answer. Then ask yourself if it aligns with how you would answer the question.
Question 4: Have you ever have a disagreement with your boss over something that he wanted you to do?
The correct answer for this question will depend on the personality that you are looking for. So, before you ask this question, you should know whether you want a follower, an advisor or a mix of the two personalities. Although there are some business owners who prefer to hire someone who will follow everything they say. There are some who prefer to hire bookkeepers and accountants who can confidently speak their mind but are also willing to follow directions from time to time.
If you’d like to know more about hiring a bookkeeper or if you have more bookkeeping questions, please talk to us. ACT Bookkeeping Group is a trusted bookkeeping company in Australian Capital Territory for many years. Our bookkeepers know how vital it is for small and medium sized businesses to get professional advice. Talk to us now and we’ll see how we can help your business grow through proper bookkeeping!
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ACT Bookkeeping Group Pty Ltd. has taken all reasonable care in the preparation of this material.
ACT Bookkeeping Group Pty Ltd. makes no warranties, representations, express or implied as to the accuracy, currency, reliability or completeness of the information contained. Users of this information should satisfy themselves that they have correctly interpreted and applied the information to their particular circumstances. Except as prohibited under any applicable legislation, ACT Bookkeeping Group Pty Ltd. does not accept any liability for loss or damage (including economic) whatsoever or howsoever incurred by any person whether direct, indirect, incidental, special or consequential, arising from the use of or reliance upon this material.
