- April 8, 2021
- Posted by: Simply Finance
- Category: Accounting
Company Bookkeeping Fees and Rates
Managing a company is no easy task—between managing inventories, supervising staff, and expanding the client base, business owners have a lot on their plates. One of the most significant investments you can make to expand your company is to recruit a bookkeeper or accounting staff.
Making sure your books are in order will help you save money on taxes, reduce tension, and gain insight into how to maximize productivity and sales. If you want to outsource your bookkeeping or employ someone in-house, this is an essential role to consider when running your company. Let’s get into the specifics and look at your bookkeeping choices as a small or medium-sized company.
Why is Bookkeeper Important?
Running a business necessitates a great deal of planning and logistics. When you enter your busy season or struggle with employee turnover, it’s easy for company owners to become overwhelmed, resulting in inadequate infrastructure and a sluggish growth plan.
Bookkeeping and accounting are often one of the first divisions to fall through the cracks. What’s the big deal with that? Even if you’re “not a numbers guy,” or even if you’re running a non-profit, there’s no denying that cash flow is what keeps your company afloat.
As a business owner, you have to think about both revenue and expenses, and keeping it in order can seem difficult at times. Mismanagement of your company’s finances could result in less space for expansion and lower productivity. Hiring a bookkeeping professional to help you handle the nitty-gritty details of your accounting will save you time and enable you to refocus your efforts on profit growth and business strategy.
Aside from freeing up your time as a business owner, bookkeepers will have experience in financial regulations and account management, ensuring that your company complies with state and federal regulations applicable to your sector. Failure to file your taxes correctly or process employee payroll correctly could cost your company a lot of money and cause you a lot of headaches as a business owner. Professional bookkeeping comes with a variety of choices and fees; let’s look at the various forms and what you can expect to pay for financial accounting and bookkeeping.
Types of Bookkeeping
Financial management services are not needed at the same level for all business owners. You may need more or less assistance depending on your industry, the size of your organisation, the number of employees you have, and the length of time you’ve been in business.
Until you employ a bookkeeper, ask yourself, “Do I just need simple enforcement or do I need accounting assistance to boost my profits?” After you’ve answered this question, you should start considering your choices for simple or full-service bookkeeping.
Both have different prices and programmer, so doing your homework to find the best option for your company is critical! Let’s look at the variations between basic and full-service bookkeeping, and how to select the right one for your needs and budget.
If you’re just getting your company off the ground, you might want to start with simple bookkeeping services to ensure that you’re following all applicable regulations and staying on top of your accounts payable and receivable operations. Once you’ve developed a sales and overhead baseline, you can need to hire a full-service bookkeeping department to help you optimize your finances. So, what do you expect from basic accounting services?
- Financial compliance with the government and the economy.
- Accounts payable and receivable are two types of accounts.
- Transactions must be registered, and proper filing must be maintained.
- Payroll collection or administration at the most basic level.
Full Service Bookkeeping
Businesses with a longer history, more staff, or a focus on expansion may need more comprehensive bookkeeping services. Commercial real estate, for example, processes a high number of real estate transactions and staff, and will most likely need a full-service accounting system to effectively handle their operations.
A full-service bookkeeper will help you handle your finances by performing simple bookkeeping and, on top of that, by assisting you in optimizing your financial plan to maximize productivity and benefit. A full-service bookkeeper will provide you with the following services:
- Person or a dedicated accounting team.
- Monthly financial reporting and growth prospects are analysed.
- Tax preparation and consultation that’s ready to file.
- Maintaining accurate financial reports and accounts.
- Protection of a financial audit.
- Bank and credit card account management.
If you’ve determined the amount of bookkeeping assistance you need, you’ll need to determine how much bookkeepers cost in order to make the most financially sound decision for your company. Monthly bookkeeping fees vary, so get a reliable estimate from the team or employee before agreeing to work with them.
How much does a Bookkeeper Charge?
The cost of a bookkeeper varies depending on the size of the company, the market, and the financial services required. Depending on experience, in-house bookkeepers can charge anywhere from $18 to $23 per hour. Another option is to hire an outsourced bookkeeper, with monthly bookkeeping fees beginning at $99 per month. The average hourly salary for a Bookkeeper in the United States is $19.43 per hour as of March 10, 2021. While Zip Recruiter records hourly wages as high as $28.61 and as low as $10.10, the majority of Bookkeeper salaries in the United States currently range from $15.87 (25th percentile) to $21.88 (75th percentile).
Cost of an In-House Bookkeeper
In the United States, the average hourly wage for a bookkeeper is $20, but rates can range from $18 to $23 per hour, depending on schooling, experience, and additional skill sets. How you measure labor cost depends on whether you need a full-time or part-time employee. When comparing an in-house bookkeeper and a financial accounting firm, consider employee expenses such as wages, training, and time off.
Some business owners may find that hiring an in-house employee is a reasonable option, but for many high-volume companies, the cost of training, payroll, and the risk of inaccuracies outweigh the benefits of hiring an in-house employee.
Cost of an Outsourced Bookkeeper
Hiring an outsourced bookkeeping firm can seem intimidating at first, but it can be a very cost-effective, quick solution with numerous advantages that can help your company expand. Depending on your needs, the cost of outsourcing your bookkeeping can vary. Finance Pal provides a variety of bookkeeping packages, each of which includes a dedicated accounting staff, online access and mobile app, and monthly reconciliations.
Benefits of hiring an Outsourced Bookkeeper
- Person experience is usually higher than collective experience, which gives business owners more peace of mind.
- There’s no need to hire or train bookkeeping workers.
- Solution that is both cost and time effective.
- Internal and external tech solutions that are incorporated.
- Mobile access to your account data and bookkeeping assistance.
- Advanced technology tools to safeguard the company’s financial information.
- Account monitoring and tracking in one location to assist in the review of market insights and areas for change.