Comparing Bookkeeping Rates
Most Small Business owners considering hiring a bookkeeper will focus on the hourly rate charged. They anticipate that by getting the cheaper rate they will be saving their business money rather then looking at all the facts and factors that may influence that hourly rate.
Bookkeeping hourly rates can differ significantly between a Bookkeeping Company and a sole trading subcontracting bookkeeper. You can expect to get bookkeeping services from anywhere between $30 to $60 per hour and Small Business owners should consider other factors such as experience and support and other benefits before making their decisions.
If your Business requires an onsite bookkeeper then you can expect to pay a little more than an offsite bookkeeper. Is the service a one off assignment or ongoing, are your records adequately sorted or in despair.
Small Business Owners should consider carefully the reasons why they are offered lower bookkeeping rates. The reasons a bookkeeper would offer a lower hourly rate could be through lack of experience or little to no industry experience and this could be dangerous for your business.
Following are some important factors to consider when doing a comparison of lower to higher rates
* Time Frames – If a bookkeeper is charging a lower rate and is inexperienced then your bookkeeping may actually take a lot longer and therefore cost you more money ! If you look at a 2 hour job for $60 per hour = $120 but a 5 hour job for $30 per hour = $150 ?? A bookkeeping company should also give a cheaper rate for data entry.
* Outsourcing your bookkeeping and Administration to a Bookkeeping Service Company completely can also be more cost effective for your business in the long term. You generally will have no software costs for upgrades or licencing. Consideration : Depending on your business it can also save on office space, rent and other overheads.
* Business Owners should consider reliability and accountability as an important factor. A subcontract bookkeeper will often not have the right insurance and no back up for service. Bookkeeping Companies will have this accountability, generally always have a backup and invest in cross training for no downtime for your business.
* Knowledge and Industry experience. Outsourcing and paying a slightly higher fee will also ensure you are in experienced hands as Bookkeeping Companies constantly train and upskill their staff and have ongoing support from professionals. Consideration : Getting the appropriate tax deductions and offsets for your business to minimize tax.
Business Owners should see that it is evident that engaging the cheapest rate will not necessarily save their business money but in fact could cost them a lot more. By considering and employing a Bookkeeping Company they will making a progressive move for their business and actually investing in the welfare and best interest of their business.
Want to find out more about Bookkeeping, then visit Michelle Carr’s site on how to choose the best Bookkeeping Services for your needs.
