For most of the small business owners, locating the right bookkeeper is the main decision that shapes the overall business strategy alongside growth. Bookkeeping as seen often is not a reactive approach because the process fuels the overall cash flow decisions and compliance needs projecting growth on the long run. This article clearly explains what to look, where to locate in a good bookkeeper and helps you review if you’re opting for the best fit according to your business needs.
At Profitjets, we help the small business owners who are looking for precise bookkeeping service. From our extensive experience in bookkeeping in many of the situations, the issue isn't a lack of awareness. The main problem we have noticed is that most of the business owners do not have a structural understanding of the business rather they carry out the tasks on assumptions. The listed process explains in detail about the standards we routinely follow as quality check when curating teams supporting our clients.
A great bookkeeper does far more than record transactions. They help create financial clarity, maintain compliance, and give business owners greater confidence in the numbers that drive their decisions.
What Does a Bookkeeper Do?
A bookkeeper keeps track of your business’s income and expenses, documents every financial transaction, categorises them correctly, and generates financial statements that reflect the health of your business. Here is a breakdown of the core tasks:
| Task | Description |
|---|---|
| Data Entry | Recording every financial transaction accurately and on time |
| Bank Reconciliation | Matching bank statements to internal records to catch discrepancies |
| Payroll Processing | Calculating salaries, managing deductions, filing payroll taxes |
| Accounts Payable & Receivable | Managing invoices, bills, and payment collections |
| Financial Reporting | Preparing P&L statements, balance sheets, and cash flow reports |
| Tax Preparation Support | Organising records and assisting with tax filing requirements |
| Software Management | Maintaining accuracy in QuickBooks, Xero, or similar platforms |
How Much Does a Bookkeeper Cost?
Pricing depends on experience, location, and the scope of services:
- Freelance bookkeepers: $25 to $75 per hour
- Bookkeeping firms: $300 to $1,000 per month (typically for full-service packages)
- Virtual bookkeeping services: $150 to $500 per month (for smaller businesses with lighter needs)
Note: Cost should never be your only criterion. A bookkeeper who prevents one significant error or missed deadline will pay for themselves many times over.
The biggest mistake businesses make when hiring a bookkeeper is focusing only on cost. A bookkeeper who saves you from one missed tax deadline or one misclassified expense will pay for themselves many times over.
Ankit Sarawagi, CPA, CA, MBA · LinkedIn
How to Find a Bookkeeper: Step by Step
- Define your needs: What transactions do you have? What software do you use? Do you need payroll support? Tax prep? Monthly reporting?
- Ask for referrals: Your accountant, attorney, or business network are the most reliable sources of genuine recommendations
- Check credentials: Look for the CB designation (Certified Bookkeeper) or relevant accounting qualifications
- Review online profiles: Check LinkedIn, professional directories, and Google reviews for evidence of consistent quality
- Interview shortlisted candidates: Ask about their experience with your industry, their software proficiency, and their communication style
- Request references: Speak to at least two past or current clients before making a decision
- Sign a contract: Document scope, fees, turnaround times, confidentiality terms, and what happens if the engagement ends
Online platforms like Upwork and Fiverr can surface candidates quickly, but they require more thorough vetting than a personal referral. Prioritise platforms or agencies that verify credentials.
Bookkeeping Methods Explained
Double-Entry Bookkeeping
The professional standard. Every transaction is recorded in at least two accounts, one debited, one credited, keeping the books in balance at all times. Produces comprehensive, reliable financial reports.
- Pros: Highly accurate, self-balancing, accepted by all tax authorities, supports detailed reporting
- Cons: More complex, requires software or a skilled bookkeeper, higher cost to maintain
Single-Entry Bookkeeping
A simpler system that records each transaction once in a central register, similar to a personal bank statement. Suitable only for very small businesses with minimal transactions.
- Pros: Simple, easy to manage, minimal software investment
- Cons: Error-prone, limited financial detail, not suitable for tax authorities in most jurisdictions, poor decision-making support
Choosing the Right Bookkeeping Method
For most businesses, double-entry bookkeeping is the right choice from day one. Single-entry may be adequate for a sole trader with very low transaction volumes, but the moment you have employees, multiple revenue streams, or any external reporting requirements, double-entry is non-negotiable.
Book a free consultation and we will show you exactly how we would run your books.
Frequently Asked Questions
Where is the best place to find a bookkeeper?
The best starting point is a referral from your accountant, business network, or professional association. If you need to search independently, look at bookkeeping firm directories, LinkedIn, and platforms like Upwork, but always verify credentials and check references regardless of source.
How much does it cost to hire a bookkeeper?
Freelance bookkeepers typically charge $25 to $75 per hour. Full-service bookkeeping firms charge $300 to $1,000 per month. Virtual services for smaller businesses start from $150 to $500 per month. The right choice depends on your transaction volume and how much support you need.
What questions should I ask a bookkeeper before hiring?
Key questions include: What accounting software do you use? Do you have experience in my industry? How do you handle discrepancies? What is your turnaround time for monthly reports? Can you provide references? What is included in your fee?
Is it better to hire a freelance bookkeeper or a firm?
Both can be excellent. A freelancer offers personal service and flexibility but may have bandwidth limits and less backup cover. A firm provides team capacity, system redundancy, and a broader skill set. For most small businesses, a reputable bookkeeping firm provides better reliability.
What is the difference between a bookkeeper and an accountant?
A bookkeeper records and organises your financial transactions on an ongoing basis. An accountant uses those records for tax planning, audits, and financial strategy. You typically need both, bookkeeping is the foundation that makes accounting possible.
Conclusion
Finding the right bookkeeper is one of the most important financial decisions a small business owner makes. Take your time, verify credentials, check references, and choose someone whose communication style fits yours. The right bookkeeper does not just keep your records clean, they become one of the most valuable people in your business.
Written by
Ankit Sarawagi, CPA, CA, MBA
Ankit leads the finance team at Profitjets, where he has worked with 500+ businesses across the US on bookkeeping, tax and CFO-level strategy. He writes about the habits that keep small business books accurate all year. Connect on LinkedIn
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