How to Hire the Best Bookkeeper in 2025

Summary:

In this episode, Sonja Jones discusses the critical differences between bookkeeping and accounting, the various pricing models for bookkeeping services, and the importance of understanding different financial roles within a business. She emphasizes the need for tax planning and the proactive measures business owners should take to manage their finances effectively. The conversation also covers the various levels of bookkeeping support available, from DIY options to full-service bookkeeping and the significance of asking the right questions when seeking financial assistance. In this conversation, Sonja Jones discusses the importance of understanding tax representation, the roles of CPAs and enrolled agents, and the nuances of nonprofit audits. She emphasizes the significance of proper tax filing for various business entities and the factors influencing pricing. The discussion also covers the selection of accounting software, the introduction of a DIY financial tracker, and the necessity of financial reports. Additionally, Sonja provides key questions for business owners to ask bookkeepers and tax preparers, highlighting the essentials of business compliance and best practices.

Takeaways:

• Bookkeeping is primarily data entry, while accounting involves analysis.

• Understanding the difference between bookkeeping and accounting is crucial for business owners.

• Pricing for bookkeeping services can vary widely based on the level of support needed.

• There are three main levels of bookkeeping support: DIY, done with you, and done for you.

• Tax planning is essential for reducing tax liability and should be done proactively throughout the year.

• Every bookkeeper does not file taxes; clarifying roles and responsibilities is important.

• Business owners should be aware of what constitutes a tax-deductible expense.

• Consultations with financial professionals should be prepared with specific questions.

• The relationship between bookkeepers and tax preparers is collaborative and essential for financial health.

• Understanding financial roles helps in making informed decisions about business finances. You need a CPA or enrolled agent for serious tax matters.

• Nonprofit audits differ significantly from for-profit audits.

• Tax filing requirements vary by business entity type.

• Pricing for tax preparation depends on the complexity of your business.

• Understanding your accounting software is crucial for financial management.

• The DIY tracker can help manage finances effectively without complex software.

• Financial reports are essential for assessing business health.

• Ask specific questions to ensure your bookkeeper understands your industry.

• Investing in your business is necessary for growth and compliance.

• Always check for compliance with local business regulations.

Chapters:

00:00 - Introduction to Bookkeeping and Accounting

01:28 - Understanding Bookkeeping vs. Accounting

05:22 - Pricing Models for Bookkeeping Services

12:04 - Different Levels of Bookkeeping Support

22:55 - Identifying Financial Roles: Bookkeeper, Tax Preparer, CPA

29:15 - The Importance of Tax Planning

32:35 - Understanding Tax Representation and Credentials

35:58 - Navigating Nonprofit Audits and Financial Reporting

36:55 - Tax Filing Essentials for Different Business Entities

40:55 - Choosing the Right Accounting Software

47:10 - Introducing the DIY Tracker for Financial Management

51:51 - The Importance of Financial Reports

55:10 - Key Questions for Bookkeepers and Tax Preparers

01:00:14 - Business Essentials: Compliance and Best Practices

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tags: bookkeeping, accounting, financial roles, tax planning, pricing models, bookkeeping services, business finance, financial documentation, tax preparation, bookkeeping support, tax representation, CPA, enrolled agent, nonprofit audits, tax filing, accounting software, financial reports, bookkeeping, business compliance, DIY tracker