The cost of bookkeeping services varies in different businesses. It completely depends on the needs and the type of services your business wants. You must be clear about the bookkeeping services that you want for your business.
The types of services that are generally included in bookkeeping services are number of expense accounts, number of credit cards, number of invoices sent, reconciliation of balance sheets, payment of bills, payroll processing etc.
The cost of bookkeeping services mainly depends on the size and lifecycle of your business and the number of employees working in your company. Today in this article we will give you a complete overview of the cost of bookkeeping services for small businesses.
Comparison Between Basic Bookkeeping Services and Full Accounting Services
If you are running a small business, you might be opting for Basic Bookkeeping services which mainly focuses on compliance such as bill payments, keeping of the transactions made, increasing payroll accuracy and following all the state and federal guidelines.
As the time passes by your business will grow and then you have to focus on detailed financial reports to manage your business more efficiently. Then you have to use more advanced bookkeeping services in order to get more detailed financial reports. These financial reports will definitely help you to make effective decisions based on the data present on these reports.
Thus you must be clear about the needs of your business, so that you can use proper bookkeeping services for your business.
The basic bookkeeping services will cover the needs of your business at the initial stage but you must use the Full accounting services in order to increase the profit and to increase the growth of your business at a later stage.
The cost of Full accounting services is much higher than the cost of basic bookkeeping services because the services provided by the Full accounting services will be more advanced to increase the profit and to increase the growth of your business.
Duties of a Bookkeeper for Small Businesses
The main duty of a bookkeeper is to keep a look at the books of your business each and every day. Bookkeepers either use any accounting software or any accounting ledger in order to maintain all the entries of your company.
The bookkeepers record all the transactions of your business, make data entries to record them and then create reports to give a complete overview of the financial status of your business.
Let us have a look at some of the basic duties of a Bookkeeper
- Bill payments and Recording the bills.
- Invoice creation and sending them to the customers.
- Account Receivable due collections
- Reconciliation of Accounts which are associated with your business.
- Managing the vendors and customers of your business for account payables and account receivables respectively.
- The bookkeeper also helps with the paperwork at the end of the month to pay the taxes.
- The bookkeepers also prepare “Client Source Documents” for audit support.
Types of Basic Bookkeeping services and Their Costs
If you want to use the basic bookkeeping services for your business, then you must know about the types of basic bookkeeping services available.
There are 3 different types of basic bookkeeping services and the cost of each of them is different.
The 3 different types of basic bookkeeping services are as follows
- Part Time Basic Bookkeeping services.
- Full Time Basic Bookkeeping services.
- Outsourced Basic Bookkeeping services.
Part Time Basic Bookkeeping Services
If you are able to manage the accounting of your business by yourself but need a little extra help, then you can choose a part time basic bookkeeping service for your business.
The cost of part time basic bookkeeping service varies widely and depends on the job location and job description. The average cost of a part time bookkeeper is 20 Dollars per hour.
A part time bookkeeper will do all the basic duties of bookkeeping such as input receipts, manage the timetable sheets of the employees, managing the vendors and customers of your business for account payables and account receivables respectively. You have to always keep a check on the work of a part time bookkeeper.
Full Time Basic Bookkeeping Services
The average cost of a full time bookkeeper varies widely between 35,000 dollars to 55,000 Dollars per year. The cost of a full time bookkeeping service depends on the location of the job.
In many developed and costly cities the cost of bookkeeping creeps towards 70,000 Dollars per year and you also have to pay extra 20% for benefits and overhead including office space.
The full time bookkeeper will keep a track of the day to day transactions and will manage all the accounting works of your business. The full time bookkeeper will maintain your books which will help you to know about the financial status of your business.
The full time bookkeeper will pay the bills, make bills for the clients,manage the timetable sheets of the employees,manage the payroll processing etc.
A full time worker will thus allow you to focus on other matters of your business rather than spending your time in the accounting works of your business. But you must review the work of the bookkeeper at a regular interval of time.
Outsourced Basic Bookkeeping Services
The average cost of Outsourced Basic Bookkeeping services varies widely between 500 Dollars to 2500 Dollars per month.
The cost of Outsourced Basic Bookkeeping services depends on the type of services required and also on the number of transactions made in your business.
When you use outsourced bookkeeping services for your business, you will be able to choose and customize the services you require to fulfill the accounting needs of your business.
If your business grows day by day, then you should outsource more advanced management accounting in order to receive a complete “Virtual accounting department”. You should upgrade your bookkeeping and accounting to accrual based accounting in order to increase the profitability of your business.
You must switch from in-house bookkeeping services to Outsourced bookkeeping services because outsourced bookkeeping services will give you more advanced technologies at low cost to increase the profitability of your business.
There are different kinds of services available in outsourced bookkeeping services that you can choose to fit the needs of your business. In an outsourced bookkeeping service you can also change the role of an existing employee.
Thus you have to be clear about the accounting needs of your business and then look at the cost of each bookkeeping service to choose the best fit bookkeeping service for your business.
We hope that now you completely know about the cost of bookkeeping services for small businesses.
You should always keep in mind the financial status of your business and also the accounting needs of your business in order to choose the best bookkeeping service at a reasonable price.