Regular monitoring of your company’s day to day activities and overall performance while running a business plays an essential role, even if you operate a small scale business, start-up or a …
Regular monitoring of your company’s day to day activities and overall performance while running a business plays an essential role, even if you operate a small scale business, start-up or a big organisation. Moreover, with the chances for mistakes and fines, it is essential to keep the bookkeeping updated.
Every business owner has thousands of things to focus upon for a smooth business flow. A bookkeeper can manage books for you.
This post will find a list of things bookkeepers can do and consider while hiring a bookkeeper.
What is the role of Bookkeepers?
Bookkeepers are experts who aid with the preparation of accounts and record day to day monetary transactions. There’s a specific amount of bookkeeping-related clerical work, and that’s where the distinction lies between these two terms, i.e. accounting and bookkeeping.
Although tracking everyday transactions is the duty of bookkeepers, accountants look at the collected information and produce meaningful insights and reports. You can use the reports, like management accounts, financial statements, cash flow reports, to make critical business decisions.
A bookkeeper focuses on the everyday recording of transactions. In contrast, an accountant focuses on the broader vision, i.e. summarising and interpreting financial data into meaningful information requiring involvement from professionals or experts.
If a business owner needs assistance from a bookkeeper instead of an accountant, here is a shortlist of the various financial activities they will support you with regularly:
- Billing of clients
- Maintaining Payroll
- Recording of expenses
- Regular spending and payment of bills
- Recording revenue forms
- Bank Accounts reconciliation
- VAT return preparation and filing
How much would it cost actually to hire a bookkeeper?
When hiring of a bookkeeper takes place, certain cost variables continue to feed regarding how much it would cost to hire a bookkeeper. These are as follows:
- Determining the Services and time frame
The first and foremost step in deciding how much your organisation will pay a bookkeeper is determined by analysing the type of services a business owner requires from them.
Financial aspects can be managed by bookkeepers, such as payroll handling, producing specific financial reports, managing or paying receivables. Make pointers of all the resources you may need and how much you need to perform these activities.
The second step is to estimate how long you will need services from a bookkeeper? Most bookkeepers work on an hourly basis. Rates vary; for example, a central London bookkeeper visiting your office may cost you more than a remote one. Length of contract and number of hours can influence the price.
You can consider outsourcing your bookkeeping to a bookkeeper based overseas. This will have several advantages like lower costs, time flexibility. However, it is not free from its challenges, like language, time zone, quality of work, data security and technological issues.
- Expertise and Experience
There may be several situations where, based on various certifications, expertise, and on-the-job experience, bookkeepers’ duties overlap with that of an accountant.
However, it will cost an individual more if he/she finds themselves having a bookkeeper with a more incredible experience. Professional expertise, advanced training, and certified degrees or certifications influence a bookkeeper’s hourly rate.
- Business Complexities
Suppose your company has complicated factors, such as different locations in different cities or some cases, a variety of contractors or suppliers. Also, you are using tracking functions to track transactions between other stores or geographic areas. In that case, having a professional or experienced bookkeeper on your side will help in dealing with these kinds of situations.
The experience and the skills to manage more complicated and, sometimes, more crucial financial details could make it more costly to employ the right fit.
If you hire a bookkeeper who is already familiar with the software or application your business is running, you will also be paying more for that expertise and experience. Search for various systems available and decide if any particular method or program requires your bookkeeper’s expertise.
Several factors influence how much it would cost you to bring a bookkeeper to an organisation. The tasks you need them for, the time duration (for how long you require a bookkeeper), the complexities you expect them to manage, and the condition in which your organisation is working. These factors will influence how much money a business owner wants to set aside in their given budget.