The most important thing is Tennessee-specific tax knowledge. Tennessee doesn’t have a state income tax on wages, which sounds simple until you realize it still imposes franchise and excise taxes on most businesses. It also has one of the highest combined sales tax rates in the country. A virtual bookkeeper working from another state might not know any of this, and that gap shows up as missed filings, surprise tax bills, or incorrectly categorized transactions. Ask directly whether they’ve worked with Tennessee businesses before and whether they understand the state’s business tax obligations.

Technology matters because it’s the foundation of the entire virtual relationship. Your bookkeeper should be proficient in cloud-based accounting software, ideally QuickBooks Online since it’s the most widely supported for small businesses. They should also be comfortable with receipt capture apps, shared document storage, and whatever payment platforms you use. If their process involves emailing spreadsheets back and forth or asking you to mail bank statements, that’s a sign their systems aren’t built for virtual work.

Communication is where virtual bookkeeping relationships succeed or fail. Before you hire anyone, ask how often you’ll hear from them, how quickly they respond to questions, and what their preferred communication channels are. A good virtual bookkeeper has a defined rhythm, whether that’s weekly check-ins, monthly review calls, or a shared dashboard you can check anytime. If you have to chase someone down to get answers about your own finances, the arrangement isn’t working regardless of how skilled they are.

Look for experience in your industry. A bookkeeper who works with restaurants will know how to handle tip reporting and food cost tracking. One who works with contractors will understand job costing. Generic small business bookkeeping is fine for simple operations, but if your business has any complexity at all, industry-relevant experience means your books actually reflect what’s happening in your business.

Pricing transparency is non-negotiable. You should know exactly what you’re paying and what’s included before you sign anything. Some bookkeepers quote a low monthly rate and then charge extra for reconciliations, financial statements, or year-end work. Others bundle everything into a clear monthly fee. Ask what happens if your transaction volume grows or if you need something outside the normal scope. Surprises on invoices erode trust quickly.

Finally, check credentials and references. A QuickBooks ProAdvisor certification means they’ve demonstrated competency with the software. References from other Tennessee business owners tell you whether they actually deliver. And look for someone who can grow with you. A bookkeeper who only handles transaction entry won’t help when you need budgeting, cash flow planning, or financial reporting that supports real decisions.

The right virtual bookkeeper should feel like a partner, not a vendor. They should understand your state’s requirements, communicate proactively, and provide full-service bookkeeping that gives you confidence in your numbers every month.