What questions should I ask before hiring a bookkeeper?
Start with industry experience. A bookkeeper who has worked with trade and service businesses will know what matters for your books. They’ll understand job costing, how to handle subcontractor payments, progress billing, materials tracking, and the deductions that apply to your type of work. A generalist can enter transactions but they won’t set up your chart of accounts in a way that actually tells you how each job performed.
Ask what accounting software they use and whether they have experience with your current setup. Most bookkeepers work in QuickBooks Online these days, but the important part is whether they know how to use it properly for your industry. A bookkeeper who just dumps everything into generic categories isn’t giving you useful information.
Find out exactly what’s included in the monthly fee. Some providers include bank reconciliation, financial statements, and bill tracking. Others charge extra for anything beyond basic transaction entry. Get a clear picture of what you’re paying for so there are no surprises. Ask about their pricing structure too. Is it flat rate or hourly? Does it go up as your transaction volume grows?
Ask how often you’ll hear from them and through what channels. If you want someone you can call with a question about a purchase or a tax issue, you need to know that upfront. Some bookkeepers work on a hands-off model where they do the books and send a report. Others take more of an advisory role where they’ll flag things, answer questions, and help you make decisions. Know which type you’re getting.
Ask what reports you’ll receive and how often. At minimum you should get a profit and loss statement and balance sheet monthly. For contractors and trades, you should also be getting job cost reports so you can see which projects are making money. If a bookkeeper can’t tell you what reports they provide, that’s a red flag.
Ask whether they handle tax preparation or coordinate with a CPA. Having your bookkeeper and tax preparer on the same page saves you money and headaches. When those two are disconnected, things fall through the cracks and you end up overpaying or missing deductions. Working with a CPA who specializes in construction and trade businesses means the books are built with tax time in mind from the start.
Finally, ask what they need from you. Good full-service bookkeeping should require minimal effort on your end, but every bookkeeper needs some level of cooperation. Knowing upfront whether they need weekly receipt uploads, access to your bank feeds, or a monthly check-in helps you decide if the arrangement is realistic for how you actually run your day-to-day.
The right bookkeeper will answer these questions clearly and without hesitation. If someone gets vague or defensive when you ask basic questions about their process, keep looking.
Long Beach's CPA for Contractors and Trades
The Next Step:
A Quick Conversation
Tell us about your business and where you need help. We'll ask a few questions, let you know what we can do, and give you a quick quote.
More Questions
What should a bookkeeper do for a contractor?
A bookkeeper for a contractor should handle much more than basic data entry. They need to track job costs, manage subcontractor payments, categorize expenses for maximum deductions, and deliver reports that show profitability by project.
Read answerCan a CPA represent me in front of the IRS?
Yes. CPAs have unlimited representation rights before the IRS. That means a CPA can speak, negotiate, and sign documents on your behalf for audits, collections, appeals, and any other IRS matter.
Read answerWhen should a small business hire a bookkeeper?
Most small businesses should hire a bookkeeper as soon as they have regular income and expenses flowing through the business. Waiting until tax time or until things feel out of control usually means paying more to fix problems that proper bookkeeping would have prevented.
Read answerI'm behind on my bookkeeping—where do I start?
Start by gathering your bank and credit card statements for the months you've missed. Figure out how far behind you are, then work forward from the last month your books were accurate. Prioritize anything tied to upcoming tax deadlines first.
Read answerCan I deduct gas and maintenance for my work vehicle?
Yes, but you need to choose between the actual expense method and the standard mileage rate. Contractors with trucks often save more using actual expenses, though both methods require tracking your business miles.
Read answerHow do I read a profit and loss statement?
A profit and loss statement reads top to bottom. Revenue at the top, then cost of services, then operating expenses, with net profit at the bottom. Each section tells you something different about how your business is performing.
Read answer