Introduction

Similar to boarding a plane, onboarding with a bookkeeper can be time-consuming and a bit stressful but you’re excited to make it to your final destination. And just like the airline staff, bookkeepers try to make the onboarding process as fast and smooth as possible. Bookkeepers normally conduct an initial consultation to get an overview of your business’ needs, send out an independent contract for you to sign, and get educated about the transactions specific to your business.

INITIAL CONSULTATION

Most bookkeepers I know provide new clients with a free 30-minute initial consultation. During this consultation, they will ask you questions about your business structure, how many business bank accounts and credit cards you have, if you have outstanding loans, how many transactions you have per month, etc. This is their way of figuring out how much time they are going to spend on setting up and organizing your chart of accounts, and how much to charge you. Some bookkeepers will charge a flat rate setup fee with a flat rate for ongoing monthly bookkeeping services, and others will charge an hourly setup fee with an hourly ongoing monthly bookkeeping rate. And then there are those bookkeepers that do a mix! My biggest piece of advice to you is to be as honest and transparent as possible at the beginning. Every transaction has a story behind it, and it is the bookkeeper’s job to figure out what the story is so they can properly categorize it.

INDEPENDENT CONTRACT

The Independent Contract, or Independent Contractor Agreement, is distributed to a prospective client to review and sign BEFORE starting on your books. This is to ensure that both parties understand the scope of work being performed, pricing, account privacy, cybersecurity, etc. There is a great amount of legal jargon in these contracts, but it’s well worth it to read it thoroughly and ask questions if you have them! As an added precaution, I advise you to ask your bookkeeper if they carry business insurance. Specifically, Professional Liability (also known as Errors & Omissions) and Cybersecurity. That’s just the old insurance agent in me talking ;).

TRANSACTION EDUCATION

This is the most important and most time-consuming part of the onboarding process. Your bookkeeper will need access to your bank accounts either in the form of statements or an online account. I like to have online access with my own login because then there is a solid audit trail of when I logged into their account versus when my client did. The bookkeeper will upload these transactions into their accounting software and begin organizing them into your chart of accounts. After they are done, they may have a few questions about some transactions. For example, you may have accidentally used your business account for a dinner on your personal trip to the Bahamas. The bookkeeper will put this into a “Suspense” or “Miscellaneous” expense account for you to review and provide them with the details about the transaction. Once the bookkeeper reconciles your accounts for a couple of months, they will get the hang of your business expenses. Then it’s smooth sailing!

Conclusion

The onboarding process with a bookkeeper consists of an initial consultation, an independent contract, and transaction education. Be as honest and transparent as possible at the beginning to help ensure a smooth onboarding. Take the time to read the independent contract thoroughly and ask all of the questions that pop up. Even if you think they aren’t worth asking, just ask! There are no “dumb” questions when it comes to your business. If you feel like it’s necessary, ask the bookkeeper if they carry Professional Liability and Cybersecurity insurance policies. The bookkeeper will have a learning curve to your business transactions, so be diligent and ready to answer any questions they may have regarding your transactions. Similar to a long flight, the onboarding process can be lengthy but the final destination is worth it. With that in mind, “make sure your seat backs and tray tables are in their full upright position, your seat belt is securely fastened, and enjoy the ride.” Your tax season is about to become a breeze thanks to your new bookkeeper!

Thank you for tuning in, and be sure to check out next month’s topic: Who Should Do Your Payroll?

Sincerely,

Kayla Maldonado