Managing a business is not an easy task as you have to juggle between inventories, increasing your clients, supervising employees, and a lot more. Bookkeeping services are the most important part that defines the triumph of any small company. They not only build a firm foundation of your company but also monitor the daily financial transactions with extreme accuracy.
So, for any business to run efficiently, it is important to hire a bookkeeper to handle its financial records. This is an investment that you must make to enhance your business.
But the main question here is how much bookkeeping services cost for small businesses? What kind of bookkeeping services are affordable? In this informative post, we will explore the cost of bookkeeping services, but before that let’s understand the basics and significance of bookkeeping.
Brief Into Bookkeeping
In bookkeeping, the bookkeepers track the transactions daily and information concerning a company. It checks the financial transactions documentation is up-to-date, error-free, and all-inclusive. As we all know, maintaining accuracy is essential to all companies.
Simply, bookkeeping means documenting all the transactions of the company in an assembled way. Moreover, the person responsible for bookkeeping documents all transactions, mortgage payments, gives clearance for invoices, tracks asset devaluation, checks financial statements, etc.
List of Things Bookkeepers Do for Business
The responsibilities of bookkeepers in any business are:
Handling record books with accuracy every day.
Preparing data entries.
Remittance to vendors.
Tracking financial transactions.
Creating financial reports.
Making, filling, then sending clients’ invoices.
Settlement of various bank accounts.
Lending audit support.
Confirming corporate compliance.
These are just a few out of many responsibilities a bookkeeper has to perform. But they are very important for small businesses to maintain efficiency.
Bookkeeping Services Cost for Small Business: Part-Time Versus Full Time Versus Outsourced
Before hiring a bookkeeping manager, you need to find out what kind of services you need. Think first, whether you need a part-time, full-time, or outsourced bookkeeper. Let’s read them one by one below.
Cost of Bookkeeping Services:
DIY – NO CHARGE
PART-TIME – $400-$800/ MONTHLY + INCENTIVES
FULL-TIME – $3,000-4,500/ MONTHLY + INCENTIVES
OUTSOURCED – $500-$2,500/ MONTHLY + INCENTIVES (Read in detail further.)
Cost of Part-Time Bookkeeping
A part-time bookkeeper’s wage can vary. If we talk about the internal rates, part-time bookkeepers get around $20/hour according to the job description and location.
But here, you need to remember that since they are part-timers they perform basic bookkeeping duties and need monitoring. Once you hire a part-time bookkeeper, your company will still require an extra person to review his/her work.
If you can handle your job as well as some accounting but require a little more help, then hiring a part-time bookkeeper is good for you. They can input receipts, track employee timesheets, monitor receivable and payable accounts.
Cost of Full-Time Bookkeeping
A full-time bookkeeper’s wage is around $35,000 to $55,000 annually with benefits according to the location.
As per GlassDoor, In cities such as New York or L.A, a full-time bookkeeper fluctuates around $70K. Not only this, you have to include 20% apart from the wage for benefits including office space also.
The best thing about the full-time bookkeepers is “Accuracy.” So, they can perform work with utmost precision.
Cost of Outsourcing Bookkeeping
The average salary of outsourcing bookkeepers fluctuates from $500 to $2,500 a month. The wage depends upon the number of transactions and the difficulties of services. The best thing here is you can customize the services you get as per your bookkeeping requirements.
Bookkeeping Services Cost in India
In India, the cost may vary according to the location and qualifications of the bookkeeper. If your company wants to hire a part-time bookkeeper, then it would cost you around 5,000 to15,000 INR monthly.
Here, you need to note that it is recommended to recruit a part-time bookkeeper when your company can perform the main bookkeeping tasks on its own and need assistance from the provider only to complete the daily routine work like managing documents and filing papers.
If your company wants to recruit a full-time bookkeeper, then the cost would be around 25,000 to 50,000 INR monthly. You should hire a full-time bookkeeper when your company already has a stable client base and has been in the market for four to five years.
But the outsourcing price for the bookkeeping services derives between the range of 16,000 to 30,000 INR. It is performed online.
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Qualifications of Bookkeepers & The Cost
It is obvious that the more qualified a bookkeeper is, the more quality and accuracy you will get. But you will not get in for cheap as the cost of their services is proportional to the qualification of the bookkeepers.
Moreover, there are three certifications, and if a provider holds two of them then it is natural for him to charge more cost than the provider holding one certification.
The three certifications are:
National Association of Certified Public Bookkeepers
The NACPB is best for an individual who has a bachelor’s degree or associate degree in accounting. For NACPB members, this exam costs around $400, and for NACPB non-members – $600.
American Institute of Professional Bookkeepers
Folks who have no formal qualification in bookkeeping can go for this certification course. This certification exam and resource costs around $479 for AIPB members and non-members have to pay $574.
QuickBooks ProAdvisor Certification
Folks can increase their skills by going for a QuickBooks ProAdvisor Certificate. By this, you will be certified by the NACPB or AIPB. Moreover, this is best for the folks going for freelance bookkeeping services.
To Wrap Up
In this world where all businesses are competing with each other, bookkeeping services offer an extra edge. Hiring a bookkeeper not only makes your business look professional but also helps survive your company in a changing financial climate.
We hope that with the help of this post you were able to decide which type of bookkeeping services would suit your business best.
All in all, we have not only talked about the cost of bookkeeping but also its types and qualifications to help you understand it much better. If you have any queries or valuable opinions to share then write them down in the comments section below. We will definitely get back to you.