Bookkeeping Rate - Know The Hidden Costs!

by Amitaabh Saboo

One of the most important factors that drive business owners to outsource bookkeeping is that it allows them to avoid costs and save money. Hiring full time employees will usually involve the cost of training, monthly salaries, payroll taxes, benefits, turnover etc. It also involves the costs of managing at least one more employee and providing office space, equipment, and supplies.
Business owners can avoid those costs by outsourcing bookkeeping which also allows them to ensure that their books are accurate and well-maintained. When tax season arrives, everything should run smoothly and accountants on hourly wages need not waste any time.

Outsourcing bookkeeping can save businesses a lot of money but only if they hire one that suits their budget. Numerous capable individuals and firms are currently available and, apart from qualifications and compatibility with the company, business owners must also carefully evaluate each service provider's bookkeeping rate. Depending on the level of experience and expertise, the regular bookkeeping rate ranges from $30 to $50 per hour. The total monthly cost of outsourcing bookkeeping will differ according to the amount of work that needs to be done and the number of hours required from the bookkeeper.

Nowadays, the most basic bookkeeping service often include recording all financial transactions, organizing income and expenditure into appropriate accounts, and preparing bank reconciliation and basic financial statements. This many also include the added benefits of having online access to your books, getting help when it comes to cost control, and receiving end-of-the-year statements to prepare your books for an accountant. This basic set of services can make the hourly bookkeeping rate add up anywhere from $250 to $500 per month.

Some businesses often require more from their bookkeepers than the basic services. For this reason, some bookkeepers can expand their services to include preparing reports, payables and receivables, administering payroll, and providing advice when it comes to cash management. When these services are included, the bookkeeping rate can easily add up to $500 per month and even more.

There are also businesses that require much more from their bookkeepers. Sometimes, mostly for larger corporations, custom-made reports are needed. If services are expanded further to include these and much more, the bookkeeping rate can add up to $750 per month.

The costs of outsourcing bookkeeping services generally depend on how much work is required because the usual bookkeeping rate is pretty much standard. Although monthly totals seem to be very high, these costs will not compare to how much a company would spend on hiring a regular, full time bookkeeper.

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