Bookkeeping Rate - The Cost of Hiring a Freelance Bookkeeper    by Amitaabh Saboo

in Finance / Accounting    (submitted 2010-02-27)

There are many concerns and aspects about the business that you need to look into. The most important thing is for you to generate profit. This means more promotion or more rapport with the customers. However, you can't deny the fact that bookkeeping is also important. But since you only have one body, you need to delegate the tasks. When you delegate the task for bookkeeping, your options are to hire an in-house bookkeeper, employ a freelance bookkeeper, or outsource the bookkeeping duties.

Getting a bookkeeper for your flourishing business is not a task that comes easy. This is because you would not only have to deal with getting someone who can perform the tasks that you need to be done like keeping your accounting books well-maintained. You must also take note of the bookkeeping rate that you would need to add on to your business expense. Presently, the range for this rate runs from $15 to more than a hundred for every hour. As such, when it comes to getting a freelance bookkeeper, you should always have a number of considerations in mind, as these could also greatly affect the bookkeeping rate that you need to pay.
Bookkeeping Rate Considerations in Hiring a Freelance Bookkeeper
Here are some of these considerations that you should look into before getting a freelance bookkeeper:
- A bookkeeper who has attained a degree in accounting come with a bookkeeping rate that is higher.
Although it is not imperative for a bookkeeper to have an accounting degree, those who have would be better off than those who do not. Because they already have a background on the matter, they understand basic business concepts like taxation, payroll and cash flow better. As such, their training would not be as extensive as those that would have to be done to those who do not have a grasp of the basics of businesses. So, if you are looking to pay a bookkeeping rate that is cheaper, then it is best that you hire a newly-graduated freelance bookkeeper who is just new to the field.
- The level of experience a bookkeeper holds is also a great determinant when it comes to his bookkeeping rate.
If a bookkeeper already has a wide experience in the field of accounting, then even if he has not attained a degree, he would still fetch a higher bookkeeping rate than others. This is because he would already have the needed knowledge when it comes to handling such business needs like creating financial statements, recording and organizing invoices, processing business papers and developing a payroll. Although this kind of bookkeeper would not come cheap, the cost of training them has been put to a minimum. So, if you want an experienced bookkeeper, then you would also have to be wise in judging if his experience measures up to his bookkeeping rate. If you are not all that convinced, then you could ask for more credentials or references to back up his said experience.
- A bookkeeper who is always updated on bookkeeping rules fetches a higher bookkeeping rate.
Change is always constant and this is the same when it comes to particular bookkeeping rules. So, if there is a bookkeeper who keeps himself abreast of these changes, then he is a definitely a good one. The modifications that this bookkeeper will have updated himself with will be reflected on his work. As such, it is best that you interview a bookkeeper stringently before hiring him. You could ask him questions about the changes that have already occurred in the bookkeeping world and his insights about them. This way, you will know if he has been keeping tabs on these changes or not.
- The bookkeeping rate should be commensurate with the tasks you will be giving a bookkeeper and his capacity to do them.
If a bookkeeper does an excellent job in keeping up with all the accounting tasks that you ask him to do, then he should be accorded with a higher bookkeeping rate. However, if you only need a bookkeeper who would only have to concentrate on particular aspects in your business like handling the invoicing or the payroll, then you could look for someone who fetches a bookkeeping rate that is much lower.