Bookkeeping & Accounting are a key component of a business’s success. Without it, their profits are hindered and their financial health is at risk. While most small businesses don’t need to worry about hiring a professional bookkeeper, some businesses do. When hiring a professional bookkeeper, it is always important to consider several different factors that should be considered before making a decision. Some of these factors include:
One of the primary reasons why businesses hire professional bookkeepers to perform their accounting responsibilities is to protect themselves from liability. Public accountants are generally viewed as being more knowledgeable and experienced in their field than bookkeepers, which is why many small business owners opt to retain them. Unfortunately, this is often not an accurate depiction of what other bookkeeping professionals are capable of. As stated above, public accountants are generally well-versed in the inner workings of the accounting process and can make a huge difference in the way their business is run.
There are many different types of public accountants on the market today. This is another reason why it is so important to research any possible candidates prior to making a final decision. Some of these professionals are entry level bookkeepers who have minimal experience in the field of bookkeeping. Other bookkeepers may have a decade or more worth of experience. No matter what level a bookkeeper has, it is always wise to choose a highly skilled professional with experience in your industry over someone who has never held a job in the field.
It is very common for clients to ask bookkeepers about professional indemnity insurance. Whether this type of insurance is right for your company depends on several different factors. The most important factor is the size and type of business you operate. Professional indemnity insurance for bookkeepers costs significantly less than other forms of insurance, but there are several other factors to consider as well. One of these factors is negligence.
Professional bookkeeping insurance policy may not actually protect a bookkeeper from financial loss or harm. However, it does protect them from being personally liable for certain errors or negligence that results in financial loss to a client. For example, if a bookkeeper accidentally enters wrong information in a journal, client files, or financial statements and the client is unaware of the mistake until it is too late, the bookkeeper may be held personally liable for the financial loss of the client. While no one likes to admit they made a mistake, professional bookkeepers are required to take steps to rectify financial errors. If they are not careful and enter the wrong information, they could be held personally liable.
There are many aspects to hiring the right workers’ compensation insurance for your accounting employees. If you choose to hire bookkeepers to help you with your day-to-day accounting needs, it is best to know whether the bookkeeping services offered are covered under your existing public accountants’ insurance policy. If they are not, then it may be necessary to obtain their own public accountants’ insurance policy. By comparing several different bookkeeping service providers, you can find one that offers the best benefits package to meet your accounting employees needs.