Last updated: May 9, 2026
What are the essential questions to ask before hiring a bookkeeper for small business owners?
If you are in a hurry, these are the five most critical questions to ask:
- Are you a certified QuickBooks ProAdvisor or Xero Certified Advisor?
- Do you have experience in my specific industry?
- What is the exact scope of your monthly services?
- How do you handle data security and backups?
- What is your preferred method and frequency of communication?
To hire the right bookkeeper, you must evaluate their technical proficiency, industry experience, and communication style. This guide is for small business owners who want to move beyond basic data entry and find a partner who provides financial clarity. You should ask about their certifications (like QuickBooks ProAdvisor), their process for reconciling accounts, and how they handle complex tasks like sales tax or payroll compliance.
What qualifications should a professional bookkeeper have?
A professional bookkeeper should hold certifications from the software providers they use most. Most modern firms specialize in cloud-based systems. You should ask if they are a QuickBooks ProAdvisor or a Xero Certified Advisor. These certifications prove the individual has passed rigorous testing on the platform's latest features.
Beyond software, check if they belong to professional organizations like the American Institute of Professional Bookkeepers (AIPB) or the Institute of Certified Bookkeepers (ICB). These memberships often require a commitment to continuing education and a specific code of ethics. While a degree in accounting is helpful, practical experience with the daily workflow of a business like yours is often more valuable for bookkeeping roles.
Which accounting software should they be proficient in?
You should ask which specific platforms the bookkeeper supports and why they prefer them. Most small businesses in Los Angeles benefit from cloud accounting. This allows both you and your bookkeeper to access the "ledger" in real time. A ledger is the primary record where all financial transactions are categorized and stored.
If you currently use a specific tool, ask about their level of expertise with it. If you are starting fresh, ask for their recommendation. A good bookkeeper will explain the pros and cons of QuickBooks Online versus Xero based on your transaction volume and integration needs. You can learn more about this in our step-by-step guide to setting up QuickBooks or Xero.
How much experience do they need in my industry?
Industry experience is vital because every sector has unique "chart of accounts" requirements. A chart of accounts is a categorized list of every place your money can go or come from. For example, a restaurant has very different bookkeeping needs compared to a digital marketing agency or a construction company.
Ask the candidate if they understand your specific revenue streams. Do they know how to handle inventory? Are they familiar with the specific sales tax rules for your location? If they have worked with similar businesses, they will likely spot errors faster and offer better insights into your "accrual basis" reporting. Accrual basis is an accounting method where you record income when it is earned and expenses when they are billed, rather than just when cash changes hands.
What services are included in the monthly bookkeeping fee?
You must get a clear, written list of deliverables. Many business owners assume a bookkeeper handles everything, but "bookkeeping" can mean many things. Ask if the monthly fee includes bank reconciliations, accounts payable, accounts receivable, and financial statement preparation.
A "bank reconciliation" is the process of matching your bank statement to the transactions recorded in your accounting software to ensure every penny is accounted for. You should also ask if they handle "compliance" tasks. At Books LA, we focus on bookkeeping-adjacent compliance like sales tax filings and payroll tax management. We do not provide income tax advice. We work closely with your CPA to ensure they have clean data for your tax returns. For more on how these processes work, see our post on navigating financial clarity.
How do they handle data security and privacy?
Your bookkeeper will have access to your bank accounts, credit card statements, and potentially employee social security numbers. You should ask about their internal security protocols. Do they use password managers? Do they require Two-Factor Authentication (2FA) on all financial accounts?
Inquire about where your data is stored. Cloud-based systems like QuickBooks and Xero are generally safer than keeping files on a local hard drive. Ask how they share documents with you. Using a secure portal is much safer than sending sensitive financial PDFs via unencrypted email.
How will we communicate about my finances?
Miscommunication is the primary reason business owner and bookkeeper relationships fail. Ask how often you will meet to review your numbers. Will you have a monthly video call, or will they simply email you reports? You should also ask about their turnaround time for emails or phone calls.
Reliable bookkeepers provide a consistent schedule. For instance, you should know that your books will be "closed" by the 10th or 15th of the following month. Closing the books means all transactions for the prior month are finalized and the reports are locked. If you want to see how this impacts business growth, read about streamlining your financial processes.
What information do they need from me every month?
Bookkeeping is a partnership. You should ask what your "homework" will be. Most bookkeepers need access to your bank feeds and copies of your receipts. Ask if they use tools like Dext or Hubdoc to capture receipts digitally.
Using digital tools reduces the time you spend scanning and mailing documents. If a bookkeeper asks you to bring a shoebox of receipts to their office once a month, they may not be using the most efficient modern workflows. Efficient document management is key to a smooth relationship, as discussed in our guide to document and workflow management.
What is the cost comparison between DIY and professional bookkeeping?
Consider a Los Angeles business owner named Sarah who runs a small retail shop. Sarah spends about 10 hours a month trying to reconcile her accounts and manage payroll. She values her time at $100 per hour, meaning her "DIY cost" is $1,000 per month.
Because Sarah is not a pro, she often makes mistakes in "categorization." This is the process of assigning a transaction to the correct expense account for tax purposes. At the end of the year, her CPA charges her an extra $1,500 to clean up the mess before filing taxes.
By hiring a professional bookkeeper for $500 a month, Sarah saves 120 hours a year and eliminates the cleanup fees from her CPA. She also gets monthly reports that show her exactly where she is overspending.
About the Author
Jelena Arkula is the owner of Books LA, a premier bookkeeping firm located in Los Angeles. She is a QuickBooks ProAdvisor and a Xero Certified Advisor with years of experience helping small businesses gain financial clarity. Jelena and her team specialize in cloud accounting, payroll management, and sales tax compliance.
IRS/Tax Disclaimer: Books LA provides bookkeeping and financial management services. We do not provide income tax advice or file income tax returns. We recommend that all clients work with a qualified CPA for income tax matters. We are happy to coordinate directly with your CPA to provide the clean financial data they need.
Frequently Asked Questions
How much does a bookkeeper usually charge?
Fees vary based on transaction volume and complexity. Most professional bookkeepers charge a flat monthly fee ranging from $300 to $1,500 for small businesses.
Do I need a bookkeeper if I have QuickBooks?
QuickBooks is a tool, not a solution. Having the software does not mean the data is entered correctly. A bookkeeper ensures the software is configured properly and that your reports are accurate.
What is the difference between a bookkeeper and a CPA?
A bookkeeper handles the daily and monthly financial records. A CPA typically focuses on high-level tax planning, audits, and filing annual income tax returns.
Can a bookkeeper help me with my payroll?
Yes. Many bookkeepers, including Books LA, manage payroll processing and payroll tax compliance. This includes filing quarterly forms and ensuring employees are paid accurately.
How often should I hear from my bookkeeper?
At a minimum, you should receive financial reports once a month. Many business owners prefer bi-weekly updates or real-time access through cloud software.
What happens if my bookkeeper makes a mistake?
A professional should have Errors and Omissions (E&O) insurance. Ask how they handle corrections and if they charge extra to fix errors they caused.
Do I have to be in Los Angeles to work with Books LA?
While we are based in LA and love working with local businesses, cloud accounting allows us to serve clients anywhere in the United States.
How do I transition from my old bookkeeper to a new one?
The process usually involves a "read-only" access transfer of your accounting software. A good firm will have a transition checklist to ensure no data is lost. You can see our transition checklist here.
How to find the right professional bookkeeping partner?
Hiring a bookkeeper is one of the most important decisions you will make for your business's financial health. By asking the right questions about qualifications, software, and communication, you ensure that you aren't just buying a service, but gaining a partner. Remember to look for certifications like QuickBooks ProAdvisor and to clarify the scope of work before signing a contract. Accurate books today lead to a much easier tax season and better business decisions tomorrow.
If you are ready to stop worrying about your ledgers and start focusing on your growth, we invite you to contact us at Books LA for a consultation.
