When you think of the next big idea, and start working on it. Like many others you probably don’t even consider keeping a bookkeeper or utilizing an accounting software. Usually because of the costs that come with having a bookkeeper and also because you feel that the business is way too new to keep a bookkeeper, given the limited number or files, slips and receipts that you would need.
Accountants just like all other consultants are an expensive ordeal to handle, the internet has made everything a lot more affordable. According to many leading researches, bookkeeping is the toughest part of the business for all small business owners. Yet they keep at it solely to save more money, and spend it on other business essentials. The costs of outsourcing a bookkeeper is much lower than keeping an in-house consultant. In order to understand the pricing system for bookkeepers it is first important to understand what they do, and what role they play in a business:
Bookkeepers in a nutshell are accountants that manage ledgers, maintain transaction history, update balance sheets, track cash-flows as well as create financial reports that illustrate your business’s standing at the end of every month. Bookkeepers also manage documentations for taxation, ensuring a smooth filing process. Along with all of these tasks they also handle the following and many more:
- Bill Payments
- Maintain Customer record and spending history
- Bank Settlements
- Account Reconciliations
- Identify discrepancies found in the accounts
If you’re more of the DIY kind of a person, than it is still manageable if you use accounting tools and software such as Monily, which is an automated bookkeeping and ledger maintaining application. It works by simply having bookkeeping information fed into it through pictures, or through manual entry. Such software reduce the hassle and brain-ache associated with bookkeeping.
A good bookkeeping software such as Monily has a minimum subscription, paid annually at $179/m, which includes you adding up to 5 accounts.
If you hire a full time, in-house bookkeeper, your expenses are definitely going to increase exponentially, not to mention the added cost of their office space. On an average a full time bookkeeper will cost you roughly around $35,000-$55,000 yearly. However, a fulltime bookkeeper will handle all your business’s day to day transactions.
A business’s core function is to make money and to save money, the best option for Small to medium businesses is to outsource their bookkeeping and accounting functions entirely, to online bookkeeping firms. This is the most cost effective and resourceful way to get bookkeeping done.
The benefit of having an outsourced bookkeeping firm such as Monily managing your accounts and books, is that you get the human capital of an entire business catering and safekeeping your financials.
Your business might be just starting or perhaps you’ve been at it for some time and are thinking on the best options to save money while managing it. The most sensible route for a small to medium business is outsourcing bookkeeping to a virtual platform, such as Monily. Which starts at only $20/ per month. Having it outsourced, will not only reduce your stress levels associated with bookkeeping, you will also be tax ready.