Do you feel like your business is falling apart? Are you spending more time on bookkeeping than on growing your company? If so, the solution may be outsourcing bookkeeping services. The process of hiring a bookkeeper and paying them to keep tabs on company finances can be extremely costly. Outsourcing bookkeeping services, however, can cost much less while still having the same impact on your business. The right outsourced bookkeeping services will save you time and money while also freeing up your time so that you can focus on growing your business as opposed to worrying about financial statements and quarterly tax returns.
If you’re looking for ways to reduce your accounting and bookkeeping costs while still ensuring that you have complete and accurate financial statements, you should consider outsourcing your bookkeeping services. Keep reading to learn more about how they can save you time and money.
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Pay a flat rate in place of costly in-house salaries and benefits
If you are considering hiring someone in-house to manage your company’s accounting, you will need to budget for salaries, benefits, and overhead costs. This can quickly become very costly, especially if you are looking for a skilled accountant. Even if you are only paying your in-house accountant a modest salary, the costs quickly add up. On the other hand, you will usually have to provide benefits no matter who you hire. When you outsource bookkeeping services, however, you pay a flat fee for each month. You do not have to worry about paying benefits or providing a salary. On top of that, many outsourced bookkeeping services give you access to their team of accountants and bookkeepers. This means you can work with highly skilled experts who keep track of your company’s finances every month.
Saves the cost of hiring, onboarding, and training new hires
While hiring the right accountant or bookkeeper in-house is important, hiring and onboarding new employees can be costly and time-consuming. When you are hiring someone, you need to run background checks, get references, and schedule multiple interviews. This can take weeks, and hiring even one incompetent employee can have a ripple effect on your entire business. Once you have hired and onboarded your new accountant or bookkeeper, it will take them time to learn about your company and how it works. This means you will need to hire them and let them onboard while they are learning the ins and outs of your business. This can be incredibly costly and time-consuming.
No or less office space is needed when you outsource
Office space is a major cost for any company, but especially for growing companies that need room to expand. When you are outsourcing bookkeeping services, however, you will likely not need as much office space. This is because accountants and bookkeepers who are managing your finances remotely only need a computer and a quiet place to work. This means you can save money on office space and utilities. If you are outsourcing bookkeeping services to an online bookkeeping firm, you do not even need an office. You can work from home, somewhere else, or even remotely. This is especially true if you are looking for a virtual bookkeeper who works remotely and on their own schedule.
Pay for only productive work (flexibility costing)
Bookkeeping service providers work on different pricing plans, so there is always an option that suits you the best. There are options of flat rate, weekly or monthly plan rate, one-time contracts rate, and hourly plan rates available. Some even provide tailor-made pricing according to the kind of service you want, resource requirement, and complexity of your work. This means you pay for only productive work.
Dedicated resource
Accounting companies, especially accounting firms, are incredibly precise and organized. They know your finances inside and out and use those numbers to help you make better business decisions. However, most accountants and bookkeepers who work in-house also have other duties. They manage your payroll, complete HR paperwork, and manage your company’s taxes. This means that while your accountant or bookkeeper is working on your financials, they may be less focused on the other aspects of their job. This can lead to mistakes and errors, and even something as simple as misfiling paperwork can cost you time and money. In an outsourced bookkeeping service, you can hire accountants and bookkeepers who work for your company’s finances alone. This means you get more focused work from more precise and organized accountants and bookkeepers. This can save you both time and money.
Reduce errors mean cost saving
If you are hiring in-house accountants and bookkeepers, you will likely have to pay for errors in their work. In many cases, you even have to pay for the time spent fixing their mistakes. However, you only have to pay for completed work when you outsource bookkeeping services. You do not have to worry about paying for the time spent fixing mistakes or errors. This ensures that you only pay for productive work. If the outsourced bookkeeping services make a mistake, they are responsible for fixing it. This means if you are working with an accounting firm, they will fix any errors at no cost to you, and you do not have to spend time fixing the mistake.
The cost difference of outsourcing to a developing nation
When you are deciding whether to outsource bookkeeping services or hire an in-house bookkeeper, you may also want to consider the costs of hiring in a different country. When you hire an accountant or bookkeeper in the United States, you pay the average salary of an accountant in the United States. This can be anywhere from $37,000 to $70,000 per year. This can quickly become very costly, depending on how many hours you work with your accountant and bookkeeper each month. However, when you outsource bookkeeping services, you can hire an accountant or bookkeeper in a developing country and save up to 70% of the costs. This is because accountants and bookkeepers in developing countries, such as India and the Philippines, have lower salaries as compared to accountants and bookkeepers in the United States.
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Conclusion
The process of hiring an accountant and paying them to keep tabs on company finances can be extremely costly. Outsourcing bookkeeping services, however, can cost much less while still having the same impact on your business and streamline your accounting and bookkeeping process. The right outsourced bookkeeping services will save you time and money while also freeing up your time so that you can focus on growing your business.