Are You Overpaying for Bookkeeping?

Bookkeeping is the process of managing all financial data of a company. Without a bookkeeper, organizations would not be aware of their financial status as bookkeepers ensure that they record all business transactions daily.

If you fail to do bookkeeping for your company, here are things that will happen:

  • Your financial options will be limited
  • You will experience problems with payroll
  • It will be tricky to manage all your expenses
  • You will have unreliable records to refer back to
  • Invoicing will fall behind

It can be tempting for business owners to skimp on bookkeeping. After all, it is among the least favorite tasks for a business to do. However, this is not the right way to operate your business. 

Instead, you need to look into all the nitty-gritty details that can have impacts on your company, directly or indirectly.

How Much Should You Pay for Bookkeeping?

The money you will spend on bookkeeping depends on your firm’s size and the roles your bookkeeper will play. When selecting an accountant in Austin, you must consider their level of experience and their specialty. 

This is because some bookkeepers are more conversant with sectors such as retail, law, healthcare, and non-profit organizations, to mention a few.

Bookkeeping payment will also depend on the number of transactions in your business, employees, the number of balance sheets, expense accounts, invoices, credit cards, and unpaid bills. 

Additionally, you can also decide whether to outsource bookkeeping services or conduct them in-house. On average, amongst most states in the US, a bookkeeper can earn between $15-$23 per hour.

Basic vs. Senior

An essential bookkeeper with little experience should typically earn between $10-$35 per hour. A senior bookkeeper with basic accounting skills should make anything between $40-$75 on an hourly rate. And lastly, a bookkeeper who is also an accountant should earn between $20- $150 and beyond.

Part- vs. Full-time

Note that you should also factor in whether your bookkeeper is working full- or part-time. Basic bookkeeping payment for a person working part-time should range between $400-$800 per month. An in-house part-time bookkeeper can earn an average of $20 per hour, but you will have to factor in location and job description.

A bookkeeper working full-time should receive payments ranging from $3000-$4500. Furthermore, you should provide benefits for both types of workers. Full-time bookkeepers will earn between $35,000-$55,000 per year with extra benefits and overheads.

Outsourcing

Outsourcing bookkeeping services may seem overwhelming at first, but it can save your business a lot of hassle. You will save on the time and money you would have spent in recruiting and training bookkeepers. Plus, you are guaranteed to get high-quality and professional services.

If you happen to outsource bookkeeping for your business, you can pay anywhere between $500-$2500 per month. However, the cost of outsourcing this service will depend on the unique needs of your business and the kind of package you get. 

A complete package will incorporate a dedicated and available team, monthly reconciliations, mobile applications, and access to online services.

The above are some of the average rates of payment for bookkeeping services. Depending on the size of your business, you should have a clue of how much you are supposed to be spending on this service.