CHOOSING A BOOKKEEPING SOLUTION Step 1: Determine skill requirements (The chart below is offered as a general guide to creating a job description.) Basic Bookkeeping Advanced Bookkeeping Accounting Finance Recording basic daily Recording more Handling accounting Handling other financial transactions such as: complex transactions functions such as: and managerial ‐Receipts & Deposits such as: ‐Processing payroll activities such as: ‐Disbursements ‐Payroll ‐Maintaining fixed asset ‐Budgeting ‐Vendor bills & credits ‐Credit card activity schedules ‐Projections ‐Customer invoices, ‐Journal entries ‐Inventory valuation ‐Cash flow analysis credits and statements ‐Inventory ‐Work‐in‐process ‐Financing ‐Project/Job costing Accounting ‐Tax preparation or ‐Estimates ‐Overhead allocations interfacing with your ‐Purchase orders ‐Cost of good/services CPA ‐Allocation by profit accounting center ‐Tax reporting (sales & ‐Bank and credit card use, gross receipts, account reconciliation 1099, payroll taxes) ‐Interfacing with a point of sale system ‐Internally prepared financial statements Job titles may include: Job titles may include: Job titles may include: Job titles may include: ‐Data Entry Clerk ‐Bookkeeper ‐Office Manager ‐Accounting Manager ‐Payables and/or ‐Senior Bookkeeper ‐Staff Accountant ‐Director of Finance Receivables Clerk ‐Full charge Bookkeeper ‐Accountant and/or Accounting ‐Entry Level Bookkeeper ‐Junior Accountant ‐Payroll Accountant ‐Chief Finance Officer ‐Bookkeeper ‐Office Manager ‐Senior Accountant Education required: Education required: Education required: Education required: ‐High School ‐High School ‐Bachelor Degree ‐Bachelor Degree in ‐Associates Degree ‐Associates or Bachelor Accounting or Finance Degree Training/experience: Training/experience: Training/experience: Training/experience: ‐None ‐Bookkeeping courses ‐4 or more college ‐Prior accounting and ‐Some college accounting courses finance experience accounting courses ‐Prior bookkeeping or ‐Prior bookkeeping accounting experience experience No supervisory duties Minimal supervisory Often includes Includes supervision of duties supervisory duties accounting and/or administrative staff Step 2: Determine time and frequency needs ___Once a month‐after the fact (Number of days___ /hours ___) You handle the invoicing, receipts and disbursements but need someone to record the transactions and create financial statements. ___Twice a month (Number of days___ /hours ___) ___ Every other week (Number of days ___ /hours ___) ___ Every Week (Number of days ___ / hours ___ ) Step 3: Consider your future needs Is your business: ___Stable‐3 to 4% annual growth ___Expanding‐5% or higher annual growth ___Seeking to merge or be acquired Step 4: List other job requirements such as industry experience, willingness to travel, additional duties (examples: administrative, sales, marketing), unusual hours, etc… Step 5: Evaluate the solutions Have your CPA Hire, train and Hire and manage Outsource to a do the manage an an independent Professional bookkeeping employee bookkeeper (1099) Bookkeeping Service Is it easy to get Yes No No Yes started? Will I have service Maybe No Maybe Yes options? Will my sensitive Yes Maybe Maybe Yes information be adequately protected? Can I have real time Maybe Yes Maybe Yes access to my books? Will my reports be Maybe Maybe Maybe Yes easy to understand? Will it be easy to get Maybe Maybe Maybe Yes my questions answered? Is small business No Maybe Maybe Yes bookkeeping their area of expertise? As my business Maybe Maybe Maybe Yes grows, will they be able to meet my needs? Step 6: Investigate After selecting the option(s) best suited to your needs, use the information above to begin your investigation. • Discuss your needs with prospects. • Ask for and carefully question references. • Compare the value and benefits the prospect offers, not just the cost. • Consider the difficulty and expense involved to discontinue or change should it not work as well as expected. • List the benefits and limitations on paper. It often makes the best choice stand out. .