As a business owner, it can be challenging to take care of the business side of things as well as the finances. You may find yourself wondering if hiring a bookkeeper is a good idea.
Hiring a certified bookkeeper helps businesses keep finances organized, and can help a small company grow. You may be tempted to get the cheapest bookkeeping services available, but you should consider much more than just cost.
But how to find a bookkeeper in Canada? The process is similar to searching for any other kind of professional. You simply need to choose the best method for your needs. The first step is checking your resources.
How to Find a Bookkeeper in Canada in 7 Easy Steps
1. Ask Clients and Colleagues for Referrals
Old-fashioned word of mouth can be the best way to find a bookkeeper. Ask those you work with their recommendations for options you can trust.
2. Search Online
You can use the internet to find a bookkeeper near you. Use Google to search “bookkeeping services near me,” or “certified bookkeeper Canada.”
3. Post Ads on Job Banks and Hiring Sites
Posting an ad can mean less work for you. Potential employees will answer your ad. This can lead to wading through many applicants.
4. Utilize Talent Sites
It is possible to find good bookkeepers here, but keep in mind that professionals will only be showing their good side. They may entice businesses with low prices.
5. Find Bookkeeper Groups and Organizations
Use Canadian bookkeeping resources like the Canadian Bookkeepers Association. Bookkeeping firms will put their member’s needs in mind over yours.
6. Find Business Groups and Organizations
Local organizations, such as the Chamber of Commerce, can point you in the right direction. This is a great way to find someone local.
7. Contact Placement Agencies
This can be a good way to find talent that is more focused on your needs. These can be pricey and may have a limited number of bookkeepers available.
Your Bookkeeper’s Role
A bookkeeper’s job is to handle a business’ finances on a daily basis. Their job duties can include:
- Record activity; transactions and bills
- Keeps track of invoices
- Taking care of tax returns
- Tasks like balance sheets, income statements, and cash-flow statements
- Working in tandem with an accountant on accounts receivable and accounts payable.
Why Is Bookkeeping Important?
It takes a lot to run a small business. You have to worry about your customers, your inventory, as well as cash flow. It is important to get the finances right or you risk not being as productive or not growing as quickly as you envisioned. While it is possible for you to learn how to do your own bookkeeping, focusing on other tasks may be more essential.
Often business owners don’t see the benefits of having a bookkeeper on their team. Do-it-yourself bookkeeping can be of poorer quality, and you run the risk of making serious mistakes. Hiring a certified bookkeeper can help avoid many problems that can be costly.
How Much Does It Cost to Hire an In-House Bookkeeper?
Having a full-time bookkeeper on staff can be rewarding. They can handle the books, all of the accounts, and any financial or tax forms. However, this can be expensive.
A full-time certified bookkeeper’s salary can run anywhere from $34,000 to $77,000 in Canada. Factor in work equipment, benefits, and vacation pay, and it gets costly.
Pros of Hiring a Full-Time In-House Bookkeeper
- You get a better understanding of your business’s finances and can make better choices.
- They are present in the office; they can provide clarification/communication on anything you need.
- They can address any financial concerns you have right away.
Cons of Hiring a Full-Time In-House Bookkeeper
- Having a full-time bookkeeper, with benefits and salary, may not be the best value for a small business.
- Adds money to overhead costs, especially for equipment and continued training.
- If they quit suddenly you must spend time and resources finding a replacement.
Hiring a part-time bookkeeper can be a great middle-ground in terms of cost and benefits.
How Much Does It Cost to Hire a Part-Time Bookkeeper?
How much do bookkeepers charge in Canada? Self-employed bookkeepers in Canada are of good quality for the cost. Here’s what you need to know about part-time bookkeepers:
- They work on contract so there are no payroll costs and no benefits.
- You will be charged an hourly fee depending on the work being done.
- They come to the office at different times and will not have set hours.
- Typically, they charge $20 to $50 per hour.
Pros of Hiring a Part-Time Self-Employed Bookkeeper
- They are physically in the office.
- Have skills necessary to do the job well.
- Flexible hours mean they can come more or less often as needed.
Cons of Hiring a Part-Time Self Employed Bookkeeper
- They may not be available at all times due to multiple clients.
- As your business grows larger, they may not be able to handle the workload.
- If they quit suddenly you have to spend time replacing them.
- If they have all of the business’s financial documents, those could be lost if the relationship doesn’t end well.
Hiring an outsourced bookkeeping service can be a great option. It is affordable, but will not have quite as many resources as an in-person bookkeeper.
How Much Does It Cost to Hire a Bookkeeping Service?
This can be cost-effective while still having access to a whole team of bookkeepers who are knowledgeable.
- Manage your finances virtually, using cloud accounting.
- Easy to customize bookkeeping services to your needs; choose which services you want from payroll, fractional controllership, etc.
- Usually will charge a one-time fee and a flat monthly rate starting around $500.
Pros of Hiring a Bookkeeping Service
- Having a team vs one person means a wider array of expertise and experience
- Easily growable to meet expanding business needs
- No extra costs such as payroll or benefits.
- You can hold them accountable for their work.
Cons of Hiring a Bookkeeping Service
- They have many clients and may not always get tasks done quickly.
- Not physically there, so the quality of communication may be lower.
You can find a bookkeeper by word of mouth, online, or through an organization. Choose from options like a full-time bookkeeper, part-time bookkeeper, or bookkeeping service. Ultimately, a business owner must decide which options are best for them and their growing business.