There are several companies out there that claim to hire bookkeepers to do your bookkeeping. How accurate are they? One of the features I like in this industry is how you can set up a retainer agreement. This means you only pay for hours worked, and your bookkeeping is still an aspect to consider. Another feature is its so-called partner program. I have never heard of a partner program, but some companies purchase “partners” that they can share or commonly refer to in their advertisements also called a “ller” or “giver”.
A bookkeeper is indeed a level playing field for a small, medium, or large business. Some people feel extra special at the fact that they don’t have to come through the entire process of hiring another company just one-off. However, there are some additional costs of hiring a company for $12.95 per hour versus $13.95 per hour for a freelance employee. Although there are a lot of all-inclusive software programs online for bookkeeping, there is still a cost of paying for books, assessments, or a “cer 28.” Accounts receivables, cost borne expenses, and malpractice insurance are all covers that could come along with a good bookkeeping relationship.
For me, Sofiya Machulskaya, one of the main components in my decision on whether to hire a bookkeeper or not, is the price of their hourly rate. I like a good hourly rate. Even if that rate is small, I feel like it’s good business. A bookkeeper who displays a “fair” hourly rate usually makes me feel more comfortable working with them. The main thing with hourly pricing is that you have a standard for which to compare. If you just apply the cost of the hourly rate to the time all you’ll get is your charge per 10 minutes of work. With a hourly rate, you see what to look for. Throw in the rate for time with you, and with a time billing rate you may go through 2-3 hourly providers only to have to settle on which one they use, which could greatly change your interpretation.
If you want proof of the operation, you can ask other providers to complete a completion form ( arise forms come with your basic proposal paperwork) to verify hours worked and revenue. This is proof that you have adequately captured and evaluated the details required by your contract. When it comes to hiring an outsourcing company for bookkeeping, you want the form to have all signed paperwork and not a hand written note at the end.
“There are some unavoidable cons to hiring a person to do your bookkeeping.” Sofiya Machulskaya says. Firstly, your only paying them for the amount of time they put in. So they still have your benefits to feel secure in being in your business. But which job do you really have in your business? Being paid for the amount of time worked for is actually not a professional practice. Even if you can’t split your bill with them, all you will have to do is take your business time, estimate the hours, and split the bill one way or another. Outside of using a company for the hourly rate, the other option that I also recommend is to check out other services offered by the company that you disagree with and see what they offer. Some providers charge additional fees on top of hourly costs.
Another factor you will consider is affects the branding of your business. It could damage your brand? After through several books or services trying to get an exact match of a bookkeeper, I received a card with an imprinted number on it that looks like a mortgage loan. This could definitely hurt your brand. We also have some clients that are not aware that their invoice amounts are a few cents lower because you are having the exact match of the client’s checks.
In closing, you can choose to hire a bookkeeper or outsourcing a certain service. If you have the money available, I would recommend hiring a bookkeeper. This practice will save you more money in the long run. Keep in mind that bookkeeping demands that you have a certain expertise that can help make sure everything is in order on a monthly basis. It is important to stick to the details and find a great bookkeeping service that will be there to help you for years to come.