Managing business finances and keeping track of “the books” is never an easy task; things tend to get quite complicated relatively quickly if you don’t have a degree in accounting. It used to be that when we need help bookkeeping, we look to a freelance bookkeeper or an on-staff accountant. While those are still options today, many companies, as well as individuals, are outsourcing their bookkeeping needs in order to cut down on expenses. Bookkeeping services can become costly, especially if you frequently, or consistently need the services. Bookkeeping is an essential part of any well-run company or business and can be invaluable to a company’s profit margin. When looking for a bookkeeping service, it is important to understand how these different businesses may charge for their services. There are a variety of ways that freelance or employed, bookkeepers or accountants tend to charge, and they can be the same as outsourced companies. However, outsourced bookkeeping services have been doing it a little bit differently, which makes them attractive to consumers for several key reasons. Overall, the newest trend in bookkeeping is outsourcing, and that is partly due to the typically lower cost.
Hourly charge is the typical way
One way that bookkeeping services are estimated is an hourly charge. This is the most typical way for accountants who work individually to charge their clients. If there is an employed bookkeeper on staff, it is likely that you pay them hourly. This is unfortunate, because often bookkeeping services are not required around-the-clock, costing you more, and more money hourly. Getting a good understanding for the real amount of work that needs to be done in bookkeeping services daily will help you get a better idea of how often you need those services, and a general understanding of how long it takes to perform those tasks. After all, you are utilizing bookkeeping services to track your expenses and improve company productivity and efficiency.
Outsourcing bookkeeping task is the smartest decision
Another way that bookkeeping services are calculated is typical of outsourced bookkeeping companies, the newest and most current form of bookkeeping. These companies tend to charge a flat rate that accounts for the hourly expense of their employees. The reason why this has become so attractive to consumers is that not all companies require bookkeeping services five days a week. Cutting down on costs and hiring a team of professionals to handle your accounting on an as-needed basis is one way to better streamline your business. Saving the money on an on-staff employee will eliminate an unnecessary expense, and a flat rate is a good way to save the cash.
Customized flat rate is a great deal
Another way and perhaps the most efficient way of pricing bookkeeping services is with customized flat rates. These are a good way to make sure everyone in the deal is happy. Customizing the rate is based on each customer’s specific needs and goals with their bookkeeping services. Sometimes smaller companies can benefit more from this option because they are not paying a flat rate that accounts for “medium-sized” quantities of bookkeeping that need to be done. Instead, the bookkeeping company estimates how much they will charge based on a number of services you require, and how long it will likely take to finish the job. This is a fair way to do business not only for the customer but for the service; sometimes bookkeepers get the short end of the stick by applying a flat rate where they are required to do a significant amount more work.
Compare and ask questions
It is important to consider both sides of this issue when looking for a bookkeeping service that prices fairly. Whether you choose to go with an outsourced bookkeeping service, or an employed individual to handle your accounting, it is always important to look at pricing and compare and contrast the differences you find. The lowest price isn’t always the best price, particularly when it comes to hiring reputable companies to keep track of your finances. There are many ways that bookkeeping service rates are decided, and that depends on the individual or company you choose. Everyone charges for their services differently, and it is most important that you ask the pertinent questions to make sure you get the best, and most fair deal.