Most small business owners manage their accounting duties independently as they develop and establish their operations. Businesses require accurate bookkeeping services to succeed in the ever-changing economy.
So what are bookkeeping services and why are they necessary for small business success?
Small and independent businesses can grow slowly or rapidly, and maintaining bookkeeping records is critical for financial success and longevity. As a CEO or active manager, keeping up with transactions and receipts can be overwhelming.
Professional bookkeepers take on the role of maintaining your books daily, regulating data entry, recording financial transactions and tax information, and creating financial summaries. Other tasks such as balancing accounts payable and receivable, and managing vendors, are also fundamental bookkeeping roles.
There are several options for bookkeeping services for small businesses, and rates can vary depending on your needs and preferences. As a successful business operator, it is important to analyze the financial health of your business and assess the type of bookkeeping service that works best for you.
Part-time bookkeeping is a great option for small business owners who can manage most accounting responsibilities, but require some extra assistance. Part-time bookkeepers help you with receipts, employee time sheets, and any other miscellaneous duties.
On average, part-time bookkeepers cost $45-65/hour, at about 15-25 hours weekly. This is a great option for business owners who can handle most financial duties on a monthly basis. If you need consistent, long-term accounting help, other bookkeeping options might be more appropriate.
A strong and successful business must have accurate and up-to-date books. Full-time bookkeepers are responsible for daily accounting operations. If you do not have the time or dedicated resources for full-time accounting, a full-time bookkeeper is a highly effective solution.
A full-time bookkeeper focuses on billing clients, managing payroll and analyzing financial data. As a company owner, you still have the responsibility of overseeing bookkeeping results and guaranteeing accuracy as your business operations develop.
The average service fees for full-time bookkeeping range from $35,000-$55,000 annually, plus benefits. Office space is likely required as well unless the bookkeeper is operating out of their own space. For small businesses facing financial growth and expanding employees, a full-time bookkeeper will provide financial stability and effective management that will greatly benefit small businesses.
Outsourcing bookkeeping services might sound intimidating or unnecessary for small business owners, but it may actually make the most sense depending on your business needs. Modern technological advancements have made outsourcing both an efficient and cost-effective option.
Outsourcing provides many benefits to your business that you cannot achieve with in-house bookkeeping services. Outsourcing companies can be tailored to your needs. Project outsourcing, flat service fees, hourly rates, and specialized packages are all available to fit the requirements of unique independent businesses.
The average rates for outsourcing bookkeepers ranges from $500-$2,500 per month. Modern and advancing small businesses can benefit from this range of customizable accounting services.
Which Bookkeeping Option is Best?
Any small business owner or entrepreneur must make the decision when it is time to recruit someone to take control of the books. The average business can outsource most financial tasks until you have surpassed 30 employees, or your revenue hits half a million annually.
If your business has expanded beyond this point, it may be necessary to hire full-time bookkeeping services that will keep your accountant busy and your business running smoothly.
Maintaining peace of mind with your finances is a critical component any small business owner needs to focus on. Choosing a bookkeeping platform that keeps your operations running smoothly will guarantee your company thrives and continues to generate profits, while minimizing losses.
Trust your instincts and don’t be afraid to try innovative outsourcing accounting programs while your business is emerging.
NuVest Management Services is an outsourced accounting and bookkeeping company with flexible solutions for all types of small and medium-sized businesses. Contact us today to see how outsourcing your bookkeeping helps reduce your business expenses.