There are good reasons to outsource your company’s bookkeeping instead of having someone do it in-house. When a business is starting up there may not be much bookkeeping to do but what you have should be done right. The problem is that you may not be able to afford someone with the skills needed to do the job right. You may not be able to afford a full time person but you still need the job to get done. Outsourcing your bookkeeping lets you hire someone with the skills and experience that you need and for the amount of work that needs to be done. So, what is the cost of outsourced bookkeeping?
As with everything else in business, what you need to pay depends upon what you need. In the case of your business, how much bookkeeping you need depends on the number of employees, how you process payroll, your expense accounts, credit cards, invoices, bills payable, monthly transactions, and how many balance sheets need to be reconciled. In addition to basic bookkeeping work, you will need to consider your procedures and policies, reports required, and the nature of your accounting system. Many companies can get by with basic bookkeeping but others need more extensive accounting services.
The basics when you start out have to do with getting paid, paying your bills, making certain that your payroll is done correctly, following federal and state regulations, and paying taxes correctly. However, a successful business does not just tally up the figures when keeping the books. A successful business has financial reports that help guide smart decisions and uses advanced bookkeeping methods such as accrual-based accounting and makes decisions based on data and smart reports. Although you may think that you cannot afford to have more-advanced bookkeeping and accounting early in the game the fact is that you cannot afford not to. Here is where outsourcing your bookkeeping helps you both control costs and gets you the skills and experience that you need to drive a successful business. It is important to know when to make the jump to more-advanced accounting instead of basic bookkeeping and experienced accountants like Exigo Business Solutions in the Kansas City area can help you make the right decision.
A full time bookkeeper in-house will typically cost from $37,000 to $67,000 a year. You can add to this what you will pay for accounting services above and beyond basic bookkeeping. If you have a part-time bookkeeper, you should expect to spend time supervising them. If you try to train a current employee you will need to spend more time overseeing their work and occasionally asking an accountant to review your accounts.
If you outsource your bookkeeping, you will need to decide what functions to outsource and what, if anything, you can still handle in-house. This also allows you to take advantage of services like a virtual CFO to help you make important business decisions.
In general, the amount of bookkeeping you need will be a percentage of your revenue. At Exigo Business Solutions we offer outsourced bookkeeping, accounting, and virtual CFO services based on your company’s revenue. These services include the introduction of effective business methods such as the Profit First system for budgeting, cash flow management, and maximizing your profit.
When you outsource your bookkeeping services, you can benefit from expertise that you will not have in-house. You can benefit from business insights that your part time, in-house bookkeeper would not have. The bottom line is that you will be able to make smart business decisions that will grow your company faster and more profitably. This is why you will typically be able to outsource your bookkeeping and have it pay for itself.
For more insights and information about outsourcing your bookkeeping, accounting, and virtual CFO services, contact us at Exigo Business Solutions.