How much should I pay for bookkeeping?
As an entrepreneur, there is always an aspect of the business, which you like and one that you dread. For example, you may like dealing with customers, but loathe restocking your shelves. If you happen to prefer doing anything other than your accounting, you should consider getting simple bookkeeping for a very small business. Most people tend to be uncertain when making this decision because they assume that the cost will be very high.
Here is what you should be paying for these services:
When you hire someone on a full-time basis:
Some people will prefer having an employee they can call in, on any day and at any time. If you fall into this category, then you might be better off getting someone to work full-time. A qualified bookkeeper will earn about 4,500 dollars per month or 50,000 dollars per year. This will not be inclusive of benefits like health insurance, which employees are entitled to. One advantage associated with this option is that you will have access to all the bookkeeping services since this person will technically be like your employee.
If you opt to get a part-time professional:
Most small businesses do not need to hire full-time professionals. Additionally, they may not have the financial capacity to make such a move. However, this does not mean that they do not need the services these experts can offer. You can have a bookkeeper handle your bills and financial records about once a week. Most will charge between 20 and 100 dollars per hour for this. Keep in mind that the bookkeeper might have a minimum number of hours, which they will work.
When you choose to outsource these services:
There are firms that offer consultancy on accounting and bookkeeping services. These firms will send you a professional to handle the work for you. For these services, you may need to pay between 500- 2500 dollars per month. If you are planning to go with this option, then you need to be organized with your invoices and receipts. This way, if you are required to hand over this information monthly or weekly, you know where everything is. An advantage associated with outsourcing professional services is you may not even need to deal with anyone in person. All the details and transactions can be handled online.
The charges for different bookkeepers will vary due to various reasons. One of these may be their work experience. You will notice that the more experience an individual has, the more money will ask for. Additionally, with someone like this, you may need to book their services in advance because they may be quite sought after. Another reason may be your location. Some cities and states are more expensive to live and work in than others. This, therefore, means that the professionals in that area may also charge a bit more money.
The services you require will also determine the rates quoted to you. If you only need basic financial record keeping, you will pay less than someone who wants, assistance with compliance, managing or payrolls and the payment of bills. In addition the size of your company, the number of transactions handled daily, weekly or monthly and also the size of your workforce, could also affect the amount of money you need to pay.
When you decide that you want to hire a bookkeeper, make sure you seek referrals from other business owners. This will ensure you locate someone trustworthily, competent and qualified. When going to see this expert, mention that you were referred to them. This might give you more credibility, which will work to your advantage when you are bargaining for lower rates.