Bookkeeping isn’t a licensed profession like accounting or law. There’s no state board granting permission to practice and no required exam. That means qualifications vary wildly from one bookkeeper to the next, and it’s on you to evaluate what someone actually brings to the table.

At minimum, a good bookkeeper should understand double-entry accounting, accrual vs. cash basis reporting, and how the three core financial statements connect to each other. If someone can’t explain what a balance sheet tells you or how it relates to your profit and loss, they’re doing data entry, not full-service bookkeeping.

Software proficiency matters more than people think. Most small businesses run on QuickBooks Online, and a bookkeeper should know it well enough to set up a chart of accounts properly, run meaningful reports, and troubleshoot problems without guessing. A QuickBooks ProAdvisor certification is a good signal because it means someone invested real time learning the platform beyond surface-level familiarity.

Formal education helps but isn’t everything. An accounting or finance degree gives someone the theoretical foundation to handle situations like loan amortization, depreciation schedules, or revenue recognition under different accounting standards. But a bookkeeper with a decade of hands-on experience and no degree will often outperform a recent graduate who’s never reconciled a real bank account. Look for some combination of education and practical experience rather than treating either one as a dealbreaker.

Industry experience is underrated. A bookkeeper who has worked with businesses like yours already understands the common transactions, typical expense categories, and nuances specific to your field. Someone experienced with restaurants knows about tip reporting and food cost percentages. Someone who works with contractors understands job costing and progress billing. That context saves you time and prevents costly misclassifications.

Look for professional certifications beyond software credentials. The American Institute of Professional Bookkeepers offers the Certified Bookkeeper designation. The National Association of Certified Public Bookkeepers offers the Certified Public Bookkeeper credential. Either one shows someone takes the work seriously enough to pursue professional development and stay current on best practices.

Communication separates adequate bookkeepers from great ones. Your bookkeeper sees your financial activity before anyone else does. If they can’t explain what’s happening in plain language or don’t flag problems when they spot them, their technical skills don’t help you much. You want someone who proactively says “your cash flow is tightening this month” or “this expense category is running way over last year” without being asked.

Attention to detail sounds obvious, but it’s where many bookkeepers fall short. Small reconciliation differences might seem minor, but they often point to larger issues. A good bookkeeper chases down every discrepancy instead of making adjusting entries to force things to balance.

When you’re evaluating a bookkeeper in Franklin or anywhere else, ask about their background and what kinds of businesses they’ve worked with. Someone with Big 4 experience or a history of working with complex financial operations brings a different level of rigor than someone who learned bookkeeping from online tutorials. The answer tells you whether they can handle your specific needs or whether they’ll be figuring things out on your dime.