What is a bookkeeper’s role in your organization? BOOKKEEPERS maintain complete, accurate, and current records of accounts and financial transactions. Bookkeepers validate and enter data into journals, ledgers, or a computer. They balance the books on a regular basis and compile reports and financial statements. Additionally, bookkeepers receive, record, bank, and distribute cash. They reconcile checkbooks and bank statements on a monthly basis. They may calculate and issue payroll checks based on plant records or time cards. Additionally, they may be responsible for posting accounts receivable and payable, preparing and depositing bank checks, recording payrolls, maintaining inventory records, purchasing supplies, preparing purchase orders, and preparing expense reports. Additionally, bookkeepers create schedules, sort documents, and file bills. These jobs exist in every industry and may be referred to as accounts payable clerk, accounts receivable clerk, or assistant bookkeeper.
The cost of a bookkeeper varies according to experience, clerical skills, the level of responsibility, and the location of the job. Salary ranges from minimum wage to $ 15 per hour for entry-level positions. A skilled bookkeeper can earn up to $ 20 per hour. After three years with the same company, a bookkeeper can earn up to $ 25 per hour. A bookkeeper typically works 40 hours per week; however, overtime may be required on occasion. Certain employers provide fringe benefits such as paid vacation and sick leave, life and health insurance, and bonus opportunities. Additional benefits that an employer may provide include membership in a credit union, as well as retirement and profit sharing plans.
The benefit of contracting bookkeeping work to a professional bookkeeper is as follows:
Outsourcing your bookkeeping functions has a number of distinct advantages. The primary objective is to save money. You get what you pay for, and if you are not willing to pay for quality, you will receive substandard service. However, outsourcing will save you money because you will not be responsible for employer payroll taxes, workman’s compensation and general liability insurances, vacation, sick leave, and health insurance, among other benefits that a good full-time bookkeeper will expect from his or her employer. Bear in mind, however, that these costs will be factored into the consultant’s hourly rate and will be reflected in their fee. Any bookkeeping consultant who has not factored these costs into their fees is not the bookkeeper you want – if they do not know enough about these costs to include them in their fees, they do not know enough about your business to be of assistance. You should budget at least three times as much as you would for a full-service bookkeeper.
And how exactly do you save money by paying three times the salary of an employee? Let us see. There will be no costs associated with recruiting, interviewing, or training at the outset. Furthermore, if you are dissatisfied with the services, there will be no additional recruiting, interviewing, or training required to replace your bookkeeper. Additionally, you will be protected from lawsuits alleging sexual harassment, wrongful termination, age discrimination, and sexism. Or an increase in your unemployment rate as a result of terminating an employee who you desired to terminate but lacked legal grounds to do so. Thus, we immediately save time and money, as well as potential hassle if things do not go as planned.
Naturally, you will not be required to pay worker’s compensation or general liability insurance premiums. Additionally, any deserving bookkeeper will expect at least two weeks vacation, sick time coverage, health and dental insurance, and possibly additional benefits.
The majority of professional bookkeepers have their own offices, which frees up space in your office. As a result, you will avoid purchasing an additional desk, calculator, computer, and computer software. All of this will be included in your bookkeeper’s fee. There are no costs associated with software updates, computer maintenance, or training. Naturally, if you prefer to have access to your computerized bookkeeping records from your office, a small investment in software installed on your computer makes this possible. Additionally, there are no office supplies to be purchased. You will be surprised at how many pens, pencils, and sheets of paper a bookkeeper can use. Your consultant bookkeeper may request that you drop off work at their office, pick it up at yours, or offer remote bookkeeping services. Additionally, by outsourcing your bookkeeping, your bookkeeper will be able to work more efficiently and accurately, as her/his office will likely have fewer distractions than your crowded office. All of this is designed to save you money.
And perhaps the most compelling reason to outsource is that you retain control over the amount of money spent on bookkeeping. This means that the person you hire to do your bookkeeping will be focused exclusively on that task – not on answering the phone, dealing with walk-ins, or conversing with other employees. Additionally, you can begin with a few hours per month and gradually increase as needed, before adjusting downward again if necessary. Can you imagine hiring an employee on a four-hour-per-month basis, then asking them to work 20 hours per week for a while before returning to four hours per month? I doubt you would keep them for long, but a freelance bookkeeper is accustomed to working around these variables and, more importantly, anticipates working with flexible schedules.
Thus, have I persuaded you yet? If this is the case, keep in mind that “you get what you pay for.” Choose superior quality because your financial records are the lifeblood of your business, and without excellent bookkeeping, no matter what type of business you have, you cannot expect to succeed.