Wondering how much does a bookkeeper cost? Let’s find out.
It is not an easy task to manage your business- it requires a lot of hard work where you have to closely manage your inventory, employees, and the ever-growing client base at once. In this ever-ending struggle, the most important task that should not be sidelined is the handling of the company’s financial accounts. To make sure you do not miss any transactions or make an error, it is essential to hire a bookkeeper or an accountant to handle your business.
This will make sure that all your financial transactions are correct, which will go a long way to save up on taxes and lots of stress. Bookkeeping will help you make your business more efficient and in turn, it will improve the revenue and growth of your company. If you decide to hire a bookkeeper for your business, you have two options- hire an in-house bookkeeper, or outsource the bookkeeping. Choosing either of the two is an important decision to make and requires a lot of planning and research to make sure you make the right decision. Let’s see what are the types of bookkeeping and the cost of hiring an in-house or outsourced bookkeeper for your business.
Also Read: What Is Virtual Bookkeeping
Types of Bookkeeping
Every business has different financial needs and different levels of accounting or bookkeeping personnel. The type of accounting that supports your needs depends on the industry criteria, company level whether big or small, the total number of employees in your company, and how fast your company is growing.
First, you need to question yourself and look for an honest answer: “Why do you need to hire a bookkeeper? Just to fulfill the basic needs, or do you need support to grow your company and its profit”.
Depending on the answer you can figure out whether you need to opt for basic bookkeeping or full-time bookkeeping. Let’s find out the difference between the two and see which will suit your requirement and budget.
Basic bookkeeping is suitable for you if your business is in the initial phase. It will ensure that your business will comply with the rules and regulations of the US accounting norms. Let’s see what all services you will get from the basic bookkeeper that you’ll hire:
- Compliance of your business with government rules
- Management of your accounts
- Management of transactions and assistance in the tax filing
- Payroll management
If your business has been operating successfully for more than a year or two and you have a fair number of employees, you can hire those bookkeeping services that are full-time and robust.
This type of bookkeeping will be beneficial in financial management and carving the future strategy based on your financial health. A full-time bookkeeper will offer the following services.
- An accounting team looking after your business transactions
- Analyzing the financial growth and status of your business.
- Assistance in the tax filing
- Systematic management of financial data.
- Yearly audit
- Manage the Credit cards and bank accounts
After you’ve decided whether you need full-time or basic bookkeeping support, you need to see how much will be the cost of hiring a bookkeeper to look after your financial needs. We can only provide a rough figure the actual fees of the bookkeeper will vary according to the team and the quality of the services they will offer.
How Much do you need to pay the Bookkeepers?
The cost of hiring a bookkeeper depends on the business level, type, and the number of services you need. The cost of in-house bookkeepers range about $400 per month on the low end to $4500 per month on the high end, and it varies according to the experience. You should also consider additional costs for hiring an in-house-bookkeeper, such as the benefits, bonuses, office equipment, insurance, office space, etc. On the other hand, outsourcing your bookkeeping needs can become a great benefit to your business. On one side the services are based on your actual needs and the fee you pay can adjust monthly, realizing great savings. Additionally, outsourcing monthly flat rates starts as low as $89 per month and come with a great number of features.
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Cost of an In-House Bookkeeper
Since the hourly rates of hiring a bookkeeper are around $18-$23, actual cost to your company will be higher when adding all other cost typical to hiring a staff in your company. Further, the exact cost will depend on the qualification, experience, and skills of the bookkeeper you intend to hire. Moreover, the cost will also depend on the type of bookkeeping assistance you need, whether full-time or part-time basis.
While hiring an in-house employee may look tempting, let’s not forget to add the cost of training you need to provide them, payrolls, and the risk of any potential blunder.
Cost of an Outsourced Bookkeeper
While you may be skeptical about the idea of outsourcing the bookkeeping department at the early stage, the outsourcing approach has the greatest advantages. From financial transparency and compliance, effectiveness of handling your financial accounts to money savings, all benefits small and large companies can enjoy.
The cost of bookkeeping packages will depend on the services you want to opt for. These cost ranges, starting from $89.
Also Read: How To Manage Employee Expenses?
Perks of hiring an outsourced bookkeeper
- A team of experts, giving business owners peace of mind since the accounts are handled by experienced bookkeepers
- Save time and effort
- Professional team of bookkeepers that sync with your schedule
- Round the clock bookkeeping support for your business
- Reduce risk
Professional Accounting Solutions, Inc,
Convenient, cost-effective, practical bookkeeping service approach to meet your business challenges.
- Monthly/Quarterly financial statements
- Monthly/Quarterly management reports
- Month-End closing:
- Posting and classification of transactions
- Bank and Credit Card reconciliation
- Lines of Credit, Liabilities, and Loans reconciliation
- A/R & A/P (Invoicing and Bill Paying)
- Inventory management
- Asset depreciation
- State sales tax reporting
- Preparation of year-end 1099’s