How Much Do the Best Accounting Outsource Services Cost?
Small and medium-sized businesses across the globe have one common challenge these days and that is how to manage their accounting functions in a hassle-free manner. Though they can have an in-house bookkeeper, part-time or full-time, to look after their financial matter, it is not always the ideal solution. The employees do need a salary per month, plus overhead expenses, plus benefits. All this together accounts for a large sum of money that, obviously not all owners want to pay. In that scenario, the best accounting outsource services might meet your business needs.
In big cities like New York or Los Angeles, the CTC of a full-time bookkeeper adds up to between $3,000 to $4,500 per month. Neither part-time bookkeeper comes at a cheap rate as their salary also fluctuates between $400 to $800 per month. These figures are enough to give you an idea of how expensive it could be to hire a professional bookkeeper. However, to reduce the expenses, some companies train their office managers only to look into their financial matters. But what they don’t know that it could cost them heavily if managers will make even the slightest error intentionally or unintentionally. That’s the main reason why many companies are placing more and more trust in accounting outsourcing companies nowadays.
What determines the cost of bookkeeping for small and medium companies?
Well, the amount the bookkeepers charge for their services depends on a lot of variables. For instance, the size and lifecycle of your company, number of employees, number of monthly transactions, number of payable and receivable accounts, number of balances sheets to reconcile, credit cards, and much more. In addition to these, your monthly expense on bookkeeping also depends on how you want your reporting, policies, and accounting system needs to be set up and administered. Keeping all these things in mind you can lookout for a trusted accounting partner and choose the best accounting outsource services.
What is the role of a bookkeeper in managing the accounts of small businesses?
The main job of a bookkeeper is to manage the record of financial transactions of a company. They are responsible for entering all the data into accounting ledgers or software as and when they receive it. Not just that, they are also expected to maintain records, track transactions, and create financial reports of your business.
A couple of activities that bookkeepers also does include but are not limited to:
1 – Coding and entering the data
2- Paying bills
3 – Creating and sending invoices to clients
4 – Collecting the due amount from clients
5 – Combining bank and credit card accounts
6 – Maintaining payable accounts for vendors and receivable accounts for clients
7 – Managing CFO (Cash Flow from Operating Activities)
Apart from this, they also look into your tax matters and provide audit support when needed. So, when you subscribe to the accounting services from a reliable company, you can be sure of a higher return on your investment. You may not get the desired results with basic bookkeeping services but once you upgrade to full-service accounting, it will help you gain increased profits and improve cash flow.
The charges of full accounting services are way higher than basic bookkeeping, but then the former require very different levels of effort and expertise. So, everything boils down to a point that what is the accounting needs of your company and how you want to manage them. If you have started your company recently and willing to do major accounting tasks yourself, you can hire a basic bookkeeper for a little help. For you, they can do works like entering receipts, tracking employee timesheets, and look into accounts receivable and accounts payable. But if you are a full-fledged developed company, outsourced accounting services might be your need.
Concluding remarks on best accounting outsource services
Managing accounts of small or medium-sized companies is not an easy affair. It requires a high level of confidentiality to ensure things work smoothly. Though there have been many cases of foul play by in-house team members in the past, it is your accountability to look for an accounting partner whom you can trust. From that perspective, accounting outsourcing companies are a reliable choice as they have well-set, pre-built, leak-proof setup and accounting systems. They adopt the latest technologies and the highest safety standards to manage the financial transactions of clients. To be frank, in no way, you will have problems managing your accounting functions through them.
All you have to keep in mind while seeking a trustworthy accounting outsourcing company is that they are a certified public accountant firm. If you have ensured that in the first place, rest assured you will get the best bookkeeping services. The major advantage of outsourced services is that you will have to spend less on them as compared to a full-time bookkeeper.