Advantage of Outsourcing
your Book Keeping to Professional Bookkeeper
What is a
role of a bookkeeper in your organisation :
keep complete, up-to-date, and accurate records of accounts and
financial arrangements. Bookkeepers verify and enter information
into journals and ledgers or into a computer. They periodically
balance the books and compile reports and financial statements.
Bookkeepers also receive, record, bank and pay out cash. They balance
checkbooks with monthly bank statements. They may calculate employee
wages from plant records or time cards and issue payroll checks.
Some of the other work they may do includes posting accounts receivable
and payable, prepare and make bank deposits, record payrolls, maintain
inventory records, purchase supplies, prepare purchase orders and
do expense reports. Bookkeepers may also make schedules, sort documents,
and file bills. These type of jobs are found in every industry and
may have various job titles, such as accounts payable clerk, accounts
receivable clerk or assistant bookkeeper.
of a Bookkeeper :
pay for these jobs depends upon experience, clerical skills,
the level of responsibility and the job location. Beginning
salaries go from minimum wage to $ 15 per hour. Experienced
Bookkeeper can make $ 20 an hour. After having worked for
three years with the same firm, a Bookkeeper can earn at $
25 per hour. A Bookkeepers usually work 40 hours a week; sometimes
it may be necessary to work overtime. Some employers have
fringe benefits such as paid vacations and sick leave, life
and health insurance, and bonuses. Other benefits that the
employer may include are participation in a credit union,
or retirement and profit sharing plans.
of outsourcing Bookkeeping work to a professional bookkeeper :
several distinct advantages to outsourcing your bookkeeping functions.
First and foremost is saving money. You get what you pay for and
if you don't pay for quality than you won't have quality service.
However, you can save money by outsourcing because you won't be
paying for employer payroll tax expense, workman's compensation
and general liability insurances, vacation time, sick time, health
insurance and other benefits a good full time bookkeeper will expect
from his/her employer. Just remember, however, that these costs
will be built into the consultant's hourly rate and their fee will
reflect these costs. Any bookkeeping consultant who has not taken
these costs into consideration is not a bookkeeper you want - if
they don't know enough to include these costs into their fees, then
they don't know enough to be a help to your business. You should
expect to pay at least three times what you would pay an experienced
full charge bookkeeper.
And just how do you save money by paying three times the amount
you would pay an employee? Well, let's see. There will be no recruiting,
interviewing and training costs for start. And if you should find
yourself unhappy with the services there will be no additional recruiting,
interviewing and training to replace your bookkeeper. Also, you
will not have to be concerned about law suits such as sexual harassment,
unlawful firing, age discrimination, sexist, etc. Or an increase
in your unemployment rates because you laid off an employee that
you really wanted to fire but had no lawful cause to do so. So right
away we have less time and money spent and potentially less hassle
if things don't go well. And of course you will not be paying workman's
compensation and general liability insurance premiums. Also any
worthy bookkeeper will expect at least two weeks vacation, coverage
for sick time, health and dental insurance and even perhaps more
professional bookkeepers will have their own offices saving
you space within your office. So you will not be buying that
extra desk, calculator, computer and computer software. Your
bookkeeper will be providing all of that as part of his/her
fee. No software updates, computer maintenance, training costs,
etc. Of course should you prefer to have your computerized
bookkeeping records available to you at your office, a small
investment in software installed on your computer makes this
possible. Also no office supplies to be paid for. You will
be amazed at just how much pens, pencils, and paper can be
used by a bookkeeper. Your consultant bookkeeper will either
ask you to drop off the work at their office, will pick it
up at your office or some may even offer remote bookkeeping
by having your bookkeeping done off site, your bookkeeper
will be able to work more efficiently and accurately because
her/his office will most likely offer less distractions than
your busy office. All of this is saving you money.
And the best reason for outsourcing is that you control the amount
of money spent on bookkeeping. What I mean by this is that the person
you hire to do your bookkeeping will be doing just that - not answering
the phone, dealing with drop-bys, chatting to other employees, etc.
Also you can start with just a few hours a month and add on when
you need to and then adjust downward again should it be necessary.
Can you imagine finding an employee to start with only four hours
a month, then asking them to put in 20 hours a week for awhile and
then back down to four hours a month again. I don't think you would
keep them for very long, but a free lance bookkeeper is able to
work around these variables and even more importantly expects to
work with flexible schedules.
So have I convinced you yet? If so, then just remember "you
will get what you pay for". Go for top quality because your
financial records are the core of your business and without great
bookkeeping you cannot expect to succeed no matter what type of
business you have. After all don't you think you are worth it ?
Contributing Writer: Mr. Bhaskar Thakkar is
a qualified Chartered Accountant and professional bookkeeper from
He is a president of M/s. BT Associates, Chartered Accountants.
The said firm provides Book keeping, Accounting, Auditing and Tax
preparation services to various Chartered Accountants in UK, US
and Canada. The firm is also specialized in preparation of VAT returns,
Payroll Processing. Visit http://www.btassociate.com A
division of said firm provides various outsourcing solutions please
visit http://www.jobs2india.com., to get more details.