The short answer
Look for someone who has kept books for businesses like yours, works in software you can use, follows a written monthly process, uses their own login instead of yours, and puts the scope in writing before work starts. Credentials help, but they answer different questions. A good bookkeeper also says plainly what they do not do: tax returns, tax advice and audits belong with a CPA or enrolled agent.
Start with the job you need done
Most owners start looking for a bookkeeper at one of three moments. The books are months behind and tax season is coming. The business has grown past the evenings you can give it. Or a lender, partner or buyer has asked for financial statements you cannot produce with confidence.
Each of those calls for slightly different help. Books that are behind need a cleanup or catch-up project first, then a monthly routine. A growing business needs monthly recording, reconciliation and reports on a set date. A lender request needs a reliable profit and loss statement and balance sheet. Write down which situation is yours before you talk to anyone, because it shapes what you ask.
It also helps to know what a bookkeeper is not. Bookkeeping is recording, reconciling and reporting. Preparing your tax return, giving tax advice and performing an audit or review are different jobs, usually done by a CPA or an enrolled agent. Many small businesses use both: a bookkeeper during the year and a tax professional at year end. If you are still deciding whether to hire at all, compare the options in in-house vs. outsourced bookkeeping.
Six things to check in any bookkeeper
Use the same list for every candidate and write the answers down. The differences show up quickly when two or three people answer the same questions.
- Experience with businesses like yours. A contractor needs job costing, a shop needs inventory and card settlements, a salon needs booth rent and tips. Ask what kinds of businesses they keep books for now. The industry pages show where each trade's books usually go wrong.
- Software you can live with. Ask which accounting software they work in and whether the file will be in your name. You should be able to log in and see your own books at any time.
- A written monthly process. Ask what happens each month and in what order. A good answer includes reconciling every bank, card and loan account to its statement and delivering reports on an agreed date.
- Security practices. Look for a separate, named login for the bookkeeper, view-only bank access where that is enough, and a secure way to exchange statements. The SBA suggests checking whether your financial, accounting and payroll accounts offer multi-factor authentication.
- A written scope before work starts. What is included, what is not, the schedule and the fee should be on paper before anyone touches your books. See what a bookkeeping scope of work should spell out.
- What they do not do. A careful bookkeeper names their limits without being pushed, and says who handles tax returns, payroll filings and sales tax returns.
| Credential | Who issues it | What it tells you | What it does not tell you |
|---|---|---|---|
| CPA | A state board of accountancy; in Idaho, the Idaho State Board of Accountancy | Passed the Uniform CPA Examination and met education, experience and good character requirements | Whether the CPA offers monthly bookkeeping, or knows your software |
| Enrolled agent | The IRS | Passed the IRS Special Enrollment Examination; may represent clients before the IRS on any tax matter | Whether they keep books or reconcile accounts month to month |
| QuickBooks ProAdvisor | Intuit, the maker of QuickBooks | Passed Intuit's exam on the software, with yearly recertification | Anything about tax or accounting licensing |
| PTIN holder only | The IRS issues the preparer tax identification number | Authorized to prepare federal tax returns for pay | No right to represent you before the IRS |
What the credentials mean
Credentials answer different questions, so read each one for what it is. The table above shows who issues each one and what it does and does not tell you.
CPA. In Idaho, certified public accountants are licensed by the Idaho State Board of Accountancy, which is part of the Division of Occupational and Professional Licenses. Idaho law reserves the CPA title for people licensed under the state's accountancy chapter, and only registered firms may provide attest services or compilation reports. You can check a license with the board's online license search.
Enrolled agent. Enrolled agents are licensed by the IRS. According to the IRS, they pass a three-part Special Enrollment Examination and complete 72 hours of continuing education every three years. Enrolled agents, CPAs and attorneys have unlimited rights to represent clients before the IRS. The IRS explains how to verify an enrolled agent's status.
QuickBooks ProAdvisor. ProAdvisor certifications are issued by Intuit, the maker of QuickBooks, and Intuit asks certified ProAdvisors to pass a recertification exam each year. A certification shows tested knowledge of the software. It is not a tax or accounting license. How to verify a QuickBooks ProAdvisor covers the directory and the certification levels.
A degree, years of experience and references round out the picture. None of them replaces asking what the person will actually do each month.
Warning signs worth taking seriously
None of these proves bad intent. Each one tends to cause trouble later, so ask about it before you sign.
- They ask for your online banking password or want to share your login instead of having their own.
- They will not put the scope and fee in writing, or the scope says only "monthly bookkeeping".
- They offer to prepare returns but hold no preparer tax identification number, which the IRS requires of anyone paid to prepare a federal return.
- They offer tax or legal opinions that belong with a CPA, enrolled agent or attorney.
- They cannot say who will actually do the work or who covers when they are away.
- They are vague about when reports arrive, or which reports you will get.
- They promise that your data can never be at risk. No system is completely risk-free.
- They want the accounting file in their name, or there is no plan for handing back access if you part ways.
Compare two or three candidates the same way
Hold a short consultation with each candidate. Bring a list of your accounts, the name of your software and a note on how current the books are. What to bring to a bookkeeping consultation has the full checklist, and it keeps the conversation specific.
Ask each candidate to describe a normal month in your books, and ask to see a sample of the reports they deliver with client details removed. If they can offer references, ask whether reports arrived when promised and how questions were handled. Then read each written scope side by side.
If you want names to start with, the site keeps a list of Treasure Valley bookkeepers, built from what each firm publishes about itself. Choosing for a church instead? Use the 15 questions to ask a church bookkeeper.
How to hold Danielson Bookkeeping to the same list
Carey Danielson holds an MBA and is a QuickBooks Online Advanced ProAdvisor, with 20+ years of bookkeeping and financial management and, separately, 30+ years across business, consulting, technology and systems. Carey is a bookkeeper, not a CPA, an enrolled agent or an attorney. Danielson Bookkeeping & Consulting does not provide tax preparation or tax planning, audits or reviews, legal advice, or investment advice.
The process starts with a consultation and a records review. What is included, what is not, the schedule and the fee are then agreed in writing before work starts, followed by onboarding and reconciled books and reports on an agreed monthly date. The steps and security practices are on how we work, and the services are on small business bookkeeping.
