We are hiring a new freelance book-keeper and would like to know some good Qs we should ask them (along with some acceptable answers) that a good book-keeper should know?
First thing might be to look at the qualification - are they accountancy part trained or Certified Bookkeepers. Either of those should give a good idea of their skills. I am working on the assumption you want a bookkeeper rather than a fully qualified accountant.
Next, to me at least, would be do they hold a practice licence and if so with whom (something you can check) and if not are they a registered bookkeeper and can they show documentation to prove they are regulated for MLR (Money Laundering Regulations) again this should be something that can be checked though it might take longer.
That, with any luck, should get you a bookkeeper who knows enough to care about the rules.
It then depends on the job spec and what you actually want done. So if you have a specific software you wish to use you will need to ask about skills in that area. If you want payroll work you need to ask about that.
If you could give a little more information about exactly what you want your bookkeeper to do then I'm sure we can all come up with more questions for you to ask :)
As always good advice there from Theresa including the last part about us needing more information to help you with the right questions.
When interviewing its difficult to know what the answer should look like when there is often more than one way to get to it.
Also, when its not a straight yes / no type answer then how will you evaluate an answer that doesn't fit exactly, word for word with one given here?
Plus of course, with nearly a million hits of this site every month many bookkeepers will be reading the answers here the same as you do.
After the above, what sort of role is it? Is it that they need to know how to use your software or are you looking for general well rounded knowledge?
Are you looking for a bookkeeper able to give tax advice or one who knows Sage inside out?
How important is it that they know Excel?
People such as myself can evaluate a bookkeeper first from the CV and then in face to face interview but if you don't know bookkeeping / Accountancy then you are at a distinct disadvantage.
A good interviewer will ask a really simple question and then keep using the answers given becoming progressively more difficult, looking for areas of uncertainty and then probing them for further detail.
I've come across all sorts of not so good interviewers including those who try to catch candidates out, those who try to prove that they are better than the candidate and those with a sheet full of answers and if the candidates answer doesn't match exactly then they mistakenly think that it must be wrong.
Consider that everyone that gets as far as an interview from their CV already has the job. If not then there was no point in interviewing them.
Once sat in front of you then what comes out of their mouths is not convincing you to hire them (they already have the job remember) its convincing you that you were wrong about them.
As a general finding the good from the bad I've found that knoweldge around accruals and prepayments is generally a key indicator of competence.
After that there's identifying whether given expenditure is an expense, a cost of sale or an asset... Ask some questions where the answers can be put in multiple categories and see which way they go with the answer.... That doesn't make an answer wrong but it shows how the candidate thinks.
Get them to calculate the VAT already in a figure (with a calculator, you can't be cruel). Watch them do it and see how quickly and confidently they do the calculation. If they pause for more than a couple of seconds on that one or start doing lots of calculations to get to the answer then they are not the person that you are looking for.
Ask them about how they would record a finance lease and an operating lease.
Ask them what depreciation is (simple question with various lengths and complexities of answer.... You are not expecting any wrong answers, you are expecting people to show to what level they understand depreciation).
Ask them the difference between Gross and Net. Trust me you will find some who don't know!
Unless your looking for an accountant (whether they call themselves a bookkeeper or accountant is often immaterial) avoid questions in relation to tax (including Capital allowances) and financial statements.
The above are quite basic questions. As mentioned before, you are not trying to catch anyone out, you are just looking for a sound basic knowledge not the perfect response to a question on some element of bookkeeping that the bookkeeper will never use... You will find at interview that candidates are often better prepared for those ones than for the basics.
You will need to be able to judge the technical competence combined with the speed and confidence of the responses. I've not given answers as they are not those sort of questions with a one answer fits all.
If you are not knowledgable in this area it may be a good idea to ask your accountant to help you choose.
Where abouts in the country are you? There's the off chance that (at a cost) one of the many accountants or higher level bookkeepers who post on here may be able to help you with the interview process (CV reviews, shortlisting and face to face interviews).
Just a thought but worth you considering,
kind regards,
Shaun.
-- Edited by Shamus on Tuesday 18th of February 2014 11:11:44 PM
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Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
