Bookkeeping Rates - Evaluating the Actual Cost of Bookkeeping    by Amitaabh Saboo

in Finance / Accounting    (submitted 2010-03-04)

Getting into a business is not an easy job; it is not even a relaxing thought. It takes an extra special person who would do the herculean task of managing the entire business: product or service enhancement, marketing, customer satisfaction, employee relations and who will see to it that the business goes nowhere but up. When the business expands, more so the task of maintaining the financial records becomes demanding. Companies would certainly need help in organizing their financial data and that is when they think of outsourcing a bookkeeper.

The entire bookkeeping process is not a thing to be taken for granted. It has now become a necessity for most businesses to outsource their bookkeeping function as their scope widens. Legalities, taxes, and others have to be considered since businesses are registered under the law and are bound by certain rules. Bookkeepers are the ones adept and knowledgeable on financial laws. Hence, it is more practical to get one, and bookkeeping rates should not hinder your business from hiring one.
Although there is surety in hiring a certified public bookkeeper when it comes to handling the whole bookkeeping process of your business, you have to consider that as an in-house employee, this person would have to be paid a salary every month. Doing bookkeeping services usually take longer period of time and if you were able to get an experienced and well-known CPA, then you would end up paying a higher rate for this. However, you can get the same kind of expertise that these CPAs could provide. This is because you will be availing of the service of this system, which you can use for months or years at a time, but comes with a one-time mode of payment.
There are a lot of things to bear in mind when you contract a bookkeeper. First thing is that you need to consider and evaluate the bookkeeper since you will be entrusting your entire financial data to him. Outsource bookkeeping sees to it that strict confidentiality is observed. Security tools are being applied that will safeguard every detail and data the clients hand in. The second thing is that you might think that bookkeeping rates would be costly. While it may be true, outsourcing your bookkeeping service is the way of reducing your bookkeeping rates a reasonable cost without sacrificing the income of the business. You cut back on expenses as you pay them only on specific periods of time or as their services are needed.
With the onset of firms offering bookkeeping service today and with competition mounting in the market, each firm offers unique packages to their clients Bookkeeping rates may likewise be lowered as bookkeeping services have promotional packages unique for every firm and ensuring that companies get their money's worth.
Bookkeeping rates are structured as follows:
- Hourly bookkeeping rates would apply for those small clients, are time-bound, and need financial data for specific requirements only.
- Monthly bookkeeping rates are for those clients who have already established rapport and need the bookkeeping service on a long-term basis.
- Project bookkeeping rate apply to medium-sized or large companies whose financial data are voluminous. An estimate is done on how long the bookkeeping process would take and discounts are offered based on the hourly bookkeeping rate.
- Transaction bookkeeping rate are given selectively and are for those clients with a high volume of transactions. Basically, this would apply for large companies.
Bookkeeping rates vary on the services and quality of work to be done. Before any quote is made, the volume of transaction and the complexity of work involved are evaluated first. Another factor to be considered is the turnaround time set by the client. It is then important not to just look at the rate when searching for a person with whom you can delegate the accounting task of your business. It is also equally important that you get quality service from the most reliable person handling the most confidential document in your business. And again, it usually goes with the price.