Do you have less time than ever to keep up with your company's bookkeeping needs? If you find that your company sends invoices or payments less frequently than it should, it may be time to hire a bookkeeper.

For most small businesses, hiring a bookkeeper involves contracting one to work for several hours per month rather than hiring one outright. Typically, a bookkeeper will pay bills, issue invoices, record and deposit payments and reconcile your bank statements. Bookkeepers should also be able to track your inventory. Many can also handle payroll, either by processing it using payroll software or by interfacing with a payroll provider.

A bookkeeper will not be able to handle all your financial work, however. Bookkeepers primarily focus on recording your company's incoming and outgoing transactions. Activities such as preparing financial statements, filing taxes and analyzing your financial results are typically handled by an accountant.

When looking for a bookkeeper, it is absolutely critical that you find one who knows what they are doing. A reference, unless it comes from an accountant who has reviewed their work, is not enough. Test their knowledge of basic accounting practices during an initial phone screen. If you do not know what to ask, ask your accountant for some basic questions to ask (with answers).

Another way to test the bookkeeper's knowledge is to test his or her ability to quickly troubleshoot common bookkeeping errors. Ask what bookkeeping errors are often made and the typical sources for these errors. Requiring references of accounting firms can also be very helpful in evaluating the quality of bookkeeping services.

A detail-oriented work ethic should accompany this know-how. Look for a bookkeeper who exhibits good judgment, is honest and trustworthy, pays attention to detail, and is thorough and careful when they work. Since your financial reporting will depend on the proper handling of your transactions, you should look for a person who will be as careful as you when handling your books.

Ideally, your bookkeeper should be familiar with the accounting software package you use to ensure the most efficient use of time. It can also be useful to hire a person with industry-specific knowledge. However, it should not prevent you from hiring a qualified bookkeeper who does not meet both criteria if you are willing to invest the time to get the bookkeeper up to speed.

Bookkeepers are typically solo practitioners who bill on an hourly or monthly rate. Rates generally translate to about $20 to $35 per hour. depending on experience.

No matter who you hire, make sure to check their work weekly for the first few months that they start working with you. It is far better to trust and verify upfront than to trust and find your books riddled with errors that could have been prevented when tax time comes.

Outsourcing your bookkeeping is a big step for any business. But doing so can allow you to focus on bringing in more revenues for your company--and more work for the bookkeeper.