The average annual salary of a bookkeeper in the United States is $45,560, not counting benefits and office space costs.
On top of the initial expenses, bookkeepers also need to stay updated on accounting regulations and might require training for new software or processes.
Outsourcing bookkeeping to a third-party company can be a cost-effective solution for small businesses, as it eliminates the need to hire and train in-house staff.
Outsourcing was once seen as a tool only for large companies, but it has become increasingly popular among small- and medium-sized businesses in recent years (Evanson, 2010). The rise of digital communication tools and online platforms has broken down geographical barriers and allowed small businesses to access a wider pool of resources and talent.
The idea of outsourcing accounting tasks to outside vendors started because companies wanted to save money and make more profit (Mueller, 2011). Outsourcing makes it easier to match project hours with business needs, and it cuts down on costs like taxes, insurance, and office space.
Outsourcing enables businesses to scale their accounting resources based on their current needs instead of maintaining a permanent in-house accounting team that may face periods of underutilization or overload.
Small businesses also consider outsourcing their accounting tasks due to limited resources. They work with a reliable accounting firm instead of hiring full-time bookkeepers to manage activities like accounts receivable and payable, and payroll processing.
The amount of cost savings that a company can achieve through outsourcing depends on a number of factors, including the type of work being outsourced, the location of the outsourcing provider, and the company’s own operational efficiency.
According to a 2018 study, approximately 62% of companies experienced cost savings of 10-25% through outsourcing. The remaining 38% of companies achieved savings of up to 40%.
Ever tried assembling a puzzle without all the pieces? That’s what managing in-house bookkeeping costs can feel like – a guessing game with surprise expenses waiting around every corner.
Outsourced bookkeeping offers a straightforward, upfront pricing structure. No hidden surprises – just a clear picture of what you’ll pay.
When a business grows quickly, its financial operations become more complex. You will need to handle more transactions, invoices, and financial data. This can be a lot of work for an in-house bookkeeping team, and it can be difficult to find and train staff with the right skills.
Outsourcing providers have the resources and expertise to handle the financial needs of even the largest and most complex businesses. They have teams of experienced bookkeepers who are familiar with the latest accounting software and technology. They can also scale their services up or down as needed, so businesses only pay for what they use.
As a small business owner looking to save money and improve efficiency, outsourcing bookkeeping is one way to do both. It’s a wise investment that can help you to focus on running your business and growing your profits.
You can avoid the upfront costs of hiring and training an in-house bookkeeper, and you can also benefit from the scalability and flexibility of an outsourced provider.
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