Small business bookkeeper's cost, which service is better?
Having a small business means that you need to spend your budget wisely. Within your budget, you need to contemplate your customer service, marketing, sales, and any other team you need to make your company work, but should you do your business' finances on your own?
If you have a tiny business or starting your entrepreneur adventure, chances are you are already taking care of your business bookkeeping. But, as your business grows, you may realize that this task is not as easy as some say.
So, what are your options? In this article, you will explore four different options when it comes to maintaining your company's bookkeeping in check. Scroll down to find the best option for you.
Small Business Bookkeeper Cost: Yourself
The first option we will explore is doing everything by yourself. There is nobody you trust more than yourself to maintain a record of the cash flow that comes and goes in your business. But, before you decide that you are going to run everything yourself, you must understand this fact: You need to be organized.
Being organized is one of the things small business owners struggle with the most. Not only do you have to have a natural gift for organization, but you also need to keep dozens of spreadsheets updated to have a clear view of your earnings and expenses. There are a lot of apps, like Quickbooks, which can help you keep track of your finances, but the fact remains the same, if you are not organized and do not update the app regularly, you will encounter many problems.
Averge Pricing: $6 - $20 a month ($0 if you use sheets)
Small Business Bookkeeper Cost: Freelance Bookkeeper
You can find freelance bookeepers all over the internet on webpages like Fiverr. They can help you organize your transactions and even discover areas of opportunity where you can save a few bucks. Freelance bookkeepers can also be hired by the hour and maintain records of everything you send them.
On the downside, having a freelance bookkeeper is very similar to managing finances yourself. If they do not have access to the company's records, you will need to send them all the necessary information so they can perform their job. In addition, some business owners do not like to provide their company's information to freelancers due to fraud cases in the past. If you decide to go for this option, get to know the person first, and ask for background information with other enterprises the freelancer has worked for.
Average Pricing: $50 per project
Small Business Bookkeeper Cost: In-house Bookkeeper
Having an in-house bookkeeper gets rid of the trust issues planted with the freelance bookkeeper. You will need to interview this professional and get to know him every day you interact with him. Also, you will not have a problem sharing your company's finances with them.
On the other side of the coin, bookkeepers are trained in only general aspects of finances. While they possess some of the skills of an accountant, some may be prepared in another industry than your own, making them a little expensive when it comes to training them. But once the training is finished, they will perform their job superbly. If you decide to go with an in-house bookkeeper, keep in mind that you will also need to invest in recruiting, equipment, office space, training, and all other necessary perks you provide when hiring a regular employee.
Average Pricing: $42237 yearly
Small Business Bookkeeper Cost: Accountant
The most pricey of all the options, but definitely one of the best, having an accountant in your company can help you eliminate all the financial clutter you have in your enterprise. Sure, they cannot provide extra money if your company is in crisis, but they can help you save a few pennies here and there and make you forget about taxes in any given year.
An accountant is obviously the best option to hire when owning a small business. Still, the amount of money you will have to pay the accountant does not compare to those of a freelance, bookkeeper, or virtual assistant. Moreover, since you are trying to save a few dollars of your budget, you may want to consider this option in the future.
Average Pricing: $81660 yearly
Small Business Bookkeeper Cost: Virtual Assistant
Virtual assistants are experts in many fields. Fortunately for your company, they also possess accounting and bookkeeping skills. They can take care of most bookkeeping tasks while you focus on other aspects of your company like marketing or client nurturing. In addition, virtual assistants possess the lowest price on this list, and you will not have to worry about paying for equipment, benefits, perks, or training.
Virtual assistants work on one condition, though, communication. They require constant contact with the company which makes use of them. This communication is vital due to the fact that virtual assistants need the information to perform their job. In contrast with freelance bookkeepers, VAs are known to be trustworthy, and if you work with a virtual assistant agency, you can even make a team of VAs or switch to someone you can work with seamlessly.
Average Pricing: $650 a month
Bookkeepers for Small Business
As you can see, there are a few options you can explore when it comes to running the finances of your small business. Remember to do the proper research before committing to one and that just as you need your company to survive, your company also needs loyal workers you can count on to perform the necessary tasks for your business growth.
If you want to know more about our virtual assistant services and how we can help lower your small business' bookkeeper cost, do not hesitate to schedule a free consultation today! Our representatives are eager to take your call and will provide you with the right virtual assistant for your company in as little as 48 hours.
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