The cost of bookkeeping for a small business or non-profit organization depends on many variables. Company size and life cycle, number of monthly transactions, number of employees and payroll processing, expense reports, credit cards, invoices to send, invoices to pay, balance sheets to reconcile, etc. In addition to these basic accounting activities, bookkeeping rates per hour and the costs will be impacted by how your accounting systems, policies and procedures, and reporting requirements are set up and maintained. Therefore, bookkeeping services fees might vary depending on the factors.
Basic Accounting vs. Full Service Accounting
Many small business bookkeeping and accounting are primarily concerned with compliance in the early stages – paying bills, getting paid, recording transactions, ensuring payroll accuracy, and complying with state and federal regulations. Bookkeeping services cost and the related methods won’t even cross your thought. At some point, your business will cross a threshold, and you will begin to emphasize the need for timely and accurate financial reporting and information. This is when you need more advanced accounting, accrual accounting, and managerial or managerial accounting to help you make data-driven decisions. It can lead to the decision of choosing an outsourcing partner and also accounting pricing packages.
So, the first thing to consider is whether you just need compliance - basic accounting - or if you're ready to move to full-service accounting that will help you get higher profits, better cash flow, and growth. The average cost of bookkeeping services is also dependant on it. They require very different levels of commitment and expertise; as you can imagine, the monthly bookkeeping fees of full-service accounting is much higher. However, most companies that take the plunge see the value and quickly experience ROI. What does an accountant do for your small business?
Accountants are responsible for keeping your books up to date daily. They typically do the entry of all data into books or software. They focus on recording a company's financial transactions through record keeping, tracking, and financial reporting. Bookkeeping cost per month varies according to it.
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Other tasks include:
- Enter, code and pay your bills
- Create and send customer invoices
- Collect overdue debtors
- Reconcile bank accounts and credit cards
- Maintaining suppliers for creditors and customers for debtors
- Support CFO / Controller and External CFO by preparing:
- Account analysis
- Working documents for month-end closing and audit support
- Scan and attach documents for tax and audit support
- Prepare customer resource documents (PBCs) for audit support
- The real cost of internal accounting and bookkeeping
Basic Accounting Cost - Part Time vs. Full time or Outsourced
If basic accounting is all your business needs at this stage, you must decide whether to do the accounting internally or outsource it. If you decide to hire and manage an accountant, you will also need to decide whether the position is part-time or full-time. If you decide to outsource, there are a few ways to go: local accounting services, local CPA companies offering accounting services, and specialized outsourced national accounting firms and the bookkeeping services cost will be defined according to that. Bookkeeping price packages will vary depending on your various ideas.
Part-time accounting for small and medium-sized businesses
The cost of a part-time accountant can vary greatly. Hourly rates for part-time in-house workers average $20/hour, depending on job description and location. They generally perform basic accounting tasks and need to be supervised and managed and the bookkeeping transactions will take care.
If you can handle your work and some of the accounting each month but need a little extra help, a part-time accountant could be a great fit for your business and the cost of bookkeeping services for small business or the bookkeeping prices is decided. You can perform tasks such as entering receipts and tracking employee timesheets, accounts receivable, and accounts payable. When hiring a part-time accountant, management should always have someone to review the accountant's work which might lead to an increase in bookkeeping cost.
Companies often seek to train an office manager or other employee with the skills to become a part-time accountant who would take extra bookkeeping charges. While this can work and is often the cheapest option on paper, there are risks if the part-time employee or office manager's output isn't up to standard. And the cost of supervision, usually over the entrepreneur's time, can be significant and might also be more than bookkeeping packages for small business offered elsewhere.
Full-time accounting for small and medium-sized businesses
The current average salary of an accountant fluctuates between $ 35,000 and $ 55,000 per year, plus benefits and overheads, depending on the position. According to various platforms, current ads in high-cost cities like New York or Los Angeles show salaries rising as high as $ 70,000. Also, you need to add about 20% more to your salary for benefits and overheads, including office space. This can prove to be higher than the monthly bookkeeping packages and bookkeeping services pricing.
A full-time accountant takes care of the day-to-day accounting duties of your office. Keeping your books organized and up-to-date is the foundation of your company's financial strength. Hiring a full-time accountant in this situation might be the right solution for you. This also varies the level of service that you take. The QuickBooks bookkeeping costmight be different from a normal accountancy work.
You can expect a full-cost accountant to carry out tasks related to paying bills, billing customers, managing timesheets and pay slips and processing end-of-month financial statements. As a business owner, you still need to look at the deliverables to ensure accuracy and the bookkeeping packages pricing are also not too high or off your budget.
Outsource accounting for small and medium-sized businesses
As with hiring an internal accountant and defining his or her role, you need to decide which areas of financial management make sense to outsource, including the accounting function. The average price for outsourced bookkeeping rates of full charge bookkeeping for your business needs ranges from $ 500 to $ 2,500 per month, depending on the number of transactions and the complexity of the services required. A key benefit of outsourcing is that it allows you to tailor the services you receive to your accounting needs. And this would then decide the bookkeeping and payroll services cost.
When going for the outsourcing solution, you need to take care of the following:
- Bookkeeping Cost Per Month
- Accounting Pricing Packages
- Full-Service Bookkeeping
- Monthly Bookkeeping Services
Additionally, you can outsource more advanced management accounting and auditing functions to get a complete "virtual accounting department," which will surely add to your monthly costs, but this may be what you need at this stage of your growth cycle. You also have the liberty to bookkeeping cost per hour and much more. If your business is in a growth phase, consider moving to full accrual accounting, with financial and management reporting to help you scale. Most of the time, you need this level of financial management not only for yourself but also for your key stakeholders, including banks, investors, and advisors.
If part-time or internal accounting is not the ideal solution, moving to bookkeeping or outsourced accounting may be the best option.
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Advantages of Outsourcing Your Bookkeeping to Velan
- Over a decade of experience in serving clients across the US
- Manage $1 billion worth books of clients in various industry spectrum
- Serves from small, medium to Fortune 500 businesses
- Access to full-service accounting from basic to financial management
- Well-trained professionals with the required domain expertise
- Ability to scale the operations on a short notice
- Certified and frequently audited data security practices
Velan Bookkeeping has over a decade of experience offering robust, reliable and quick, offshore bookkeeping services to some of the biggest accounting firms in Dover. We operate from an offshore delivery centre, which acts as an extended office, serving you relentlessly, day-in and day-out. Put an end to your search for the ideal outsourcing partner. Choose Velan and choose liberation.