Bookkeeping - How Much Should I Pay For A Good Bookkeeper?

Introduction:

My name is Beverley Hall. I am a Norfolk based freelance travelling bookkeeper. This means that I am self employed, fully qualified and certified to practice within the UK. The bookkeeping services that I offer are what is known 'Client Based' bookkeeping services. This means that I visit and work from my clients place of business. This offers my clients several benefits.

Firstly, they are able to keep control of their paperwork in-house. This saves them time because a home working or office bound bookkeeper will require the business owner to either photocopy each receipt, invoice, bank statement etc and prepare them for email or post.

Secondly, it provides the client with peace of mind that their paperwork stays within their own premises, maintaining security and adhering to personal data legislation. The last thing you want is your business accounts getting into the wrong hands.

Thirdly, your 'Client Based' bookkeeper should be insured and affiliated to a bookkeeper trade body. This offers both peace of mind and access to a huge knowledge base when problems arise.

What to look for in a good Bookkeeper

In these times of financial restriction it is essential that your business manages its overheads in a sensible and logical fashion. You do not want to paying over the odds for your services, but you also realise the need to get the best service available for your budget. Many company owners look to reduce their business expenses by seeking services from a third party and accountancy / bookkeeping charges are one of the first charges that will come under scrutiny.

There are a few variables that must be considered when you start your search for a bookkeeper. The term 'bookkeeper' is not only a generic term for someone who looks after the recording and organising of day to day company financial transactions, it is also a qualification which holds specific requirements including examinations, experience, insurance and organisation memberships / fellowships.

In your search for value you will encounter various prices for what seem to be the same bookkeeping services. Unfortunately, business owners who opt for the cheapest price that they can find could have a shock in store when it comes to the level of service that they receive.

Examinations

An excellent way to appraise the quality of your bookkeeper is through the qualifications that he or she holds. Although anyone can call themselves a bookkeeper, only a small percentage have what it takes to pass the high standards that are set by these courses / examinations.

For my part, I undertook the following examinations:

• Pitman Level 1 Book-Keeping & Accounts - First Class

• Pitman Level 2 Book-Keeping & Accounts - First Class

• Pitman Level 3 Accounting - First Class

• Pitman Level 4 Accounting - First Class

• IAB Diploma in Computerised Accounts (Sage Line 50) - Credit

• Pitman Level 1 Computerised Accounts (Sage Line 50) - First Class

These courses, I feel, offer my clients the maximum level of knowledge that a bookkeeper can hold, without being a fully trained and experienced accountant. These qualifications are incredibly difficult to pass and many who start the process fall by the wayside as the workload is very demanding.

When appointing a bookkeeper for our business you should always ask to see their qualifications & diploma's. With these you can research their value by visiting the course organisation website or telephoning them for information. Obviously, if you are operating a very small business, you may not need the level of bookkeeping services that I offer, but if you are given the option and the price is right go for the qualification every time.

Experience

Bookkeepers will often state that they have been working as a bookkeeper for many years. This may be true, but this does not necessarily equate to the amount of experience that they have.

It is essential that someone who is offering bookkeeping services has worked as a professional bookkeeper directly for an accountancy practice. Most bookkeepers will have spent a great deal of time working for a company, maybe in the accounts department. This is not a rounded experience of bookkeeping services. Spending your day on bought and sales ledger maintenance is not bookkeeping and anyone entering the world of professional bookkeeping services with only this experience behind them will immediately be out of their depth.

Any professional bookkeeper should have worked for at least six months in the problem department of a small, hard pressed accountancy firm. Anyone reading this, who has actually experienced this, will know exactly what I am describing. In this environment you will see the worst kept accounts, the ones that have several thousand outstanding transactions. You will encounter a broad variety of business types and probably meet some dodgy characters along the way. Spending time trawling through these accounts will give a professional bookkeeper all of the confidence needed to survive in the real world. It is essential for a bookkeeper to spot problems and address them. It is also essential for a bookkeeper to be knowledgeable enough to realise when they are being misled by a client.

When finding your ideal bookkeeper you should always ask them how much 'Accountancy Practice' experience they have. It does not have to be years, just enough to have grounded them.

Industry Organisation – Fellowship or Membership

Your bookkeeper should hold a certificate to practice bookkeeping from one of the respected bodies in the industry. If your bookkeeper is offering a professional service they should hold membership to one of the following organisations IAB ( International Association of Bookkeepers ) or ICB ( Institute of Certified Bookkeepers ). This proves that they have passed the proper level of qualification to adequately offer private practice in the UK.

For my part I am am FIAB ( Fellow of International Association of Bookkeepers ). The IAB website describes this as “A Fellow is entitled to use both the designatory letters FIAB and the title of ‘Registered Book-keeper'”. They will have checked both my qualifications and experience and found that I fit the 'advanced' level required to display the letters FIAB after my name. The IAB is my back up when I need information regarding current legislation, latest industry information and any advice regarding client difficulties. They have proved themselves to be invaluable to my both my clients and myself.

It is definitely in your interest as a business owner to retain a professional bookkeeper with certificate to practice from either the IAB or the ICB. Otherwise you will have to research their qualifications and judge whether you think they are sufficiently qualified to undertake your particular needs.

Insurance

Just as a footnote, I would advise you to only work with a bookkeeper who has adequate insurance. Although you will probably never have to call upon it, it is best practice for a bookkeeper to have cover for the services that they offer.

So, how much should I pay for my bookkeeper ?

The price that a bookkeeper charges will reflect a number of service / environmental factors. You should expect to pay more for a bookkeeper who offers services to city centres, travelling and parking are a big expense. You should expect to pay more if your bookkeeper is experienced / fully qualified. You should pay more if a bookkeeper is driving and working from your place of business, but you at least witness the hours that you are invoiced for, which can provide peace of mind.

I charge £15.00 per hour (Jan 2010 price), I am fully qualified and I travel and work from my client's base, including city centres. You might find someone cheaper and as long as you have checked their references, qualifications, certificate to practice, experience and insurance, you should be able to judge whether they are a offering a good deal or not.

If you would like to discuss my bookkeeping services please visit my website, where you will find contact information etc.

Thanks for reading.

Beverley Hall - FIAB DipCB

Article Source: http://www.articlesbase.com/accounting-articles/bookkeeping- how-much-should-i-pay-for-a-good-bookkeeper--1797362.html

Beverley Hall offers Professional Norwich Bookkeeping Services in association with her husband Colin, A Norwich web designer and SEO Specialist.