Acquiring the right type and quantity of data is the first step towards managing your business. Understand how bookkeeping helps in this process and why choosing online bookkeeping services is a wise option.
If you want to grow your business, you need a lot of data. Data that will tell you where you can improve your profit margins and where you are bleeding money. And, you can get this data by hiring a bookkeeper.
Many small business owners try to do this job themselves. But let me tell you that as a business owner, your time is a lot more valuable than that. You don't need to hire a full-time bookkeeper. It's really expensive. Rather, you can hire a part-time bookkeeper or even completely outsource the service. This way you can get your accounts updated every week or month.
You can even hire an online bookkeeping services agency. These online bookkeeping services do pretty much everything from simple data entry jobs to creating your tax returns. You can subscribe to any of their packages and expect a flawless outcome.
So, the ultimate question is, how much will all these different services cost? To answer that we can categorize them into a list of three. Here are three categories:
Part-time bookkeepers are paid at an hourly rate. These rates depend on the types of jobs they have to do. The average rates can vary from $20 to $50 per hour. Part-time bookkeepers do a lot of the basic tasks like managing receipts, create invoices, etc. When working with a part-time bookkeeper, it is always wise to have an accountant or management review their work. Part-time bookkeepers are more suited for small businesses.
A full-time bookkeeper is like any other employee. Full-time bookkeepers have an average annual salary ranging from $40,000 to $50,000. On top of that, you have to provide them with benefits like health insurance. They need an office space to work along with supplies. You can expect a full-time bookkeeper to do all sorts of jobs ranging from organizing receipts, balancing bank accounts to handling payroll and withholding taxes. If you have a pretty sizable business and can invest in expanding, you should hire a full-time bookkeeper.
The best thing about outsourcing is that you are in control of customizing your services however you need. By outsourcing, I mean online or virtual bookkeeping services. This can cost anywhere from $200 to $2500 per month. This cost depends on what kind of service you have opted for. For example, basic tasks like data entry, recording expenses, etc. are going to cost you way less than more advanced tasks like creating a tax return and calculating payrolls. These are the ideal bookkeeping services for small businesses as you can pick and choose what you want.
Bookkeeping services for small businesses have come a long way from the good old days. It doesn't matter, and whether your business is big or small, a good bookkeeper is essential in keeping your accounts in order. This will not only save your precious time but also minimize your chances of encountering accounts related mistakes.
