Successful businesses require the input of an accountant or bookkeeper to manage financial records. Once you realize this, you will also want to know how much bookkeeping services cost to determine what is within your budget. The answer to this question will not always be straightforward since you can hire an in-house employee, a traditional brick-and-mortar firm, or an online bookkeeping service provider. Seek the help of our experts at Williams Accounting & Consulting for honest and diligent services. This article provides more information about bookkeeping and the approximate fees for services:
The Difference Between Bookkeeping and Accounting
It is essential to understand the difference between accounting and bookkeeping before breaking down the cost.
This is because people use them interchangeably and ignore the significant difference between the two terms.
Bookkeeping is the recording of business transactions in a particular way. Usually, it is recommended that businesses follow a consistent way of doing things for the best outcome. Bookkeepers record and pay bills, record financial transactions, create invoices, process payrolls, and track sales taxes. The complexity of doing these things depends on the size of the business and the number of transactions per day.
On the other hand, accounting is the use of information recorded by bookkeepers to come up with higher-level reports. Accountants prepare adjusting entries, prepare and analyze financial statements, plan taxes, advise businesses, and complete income tax returns. An accountant will provide you with a deeper understanding of financial reporting and reduce taxes where possible.
The Cost Breakdown
As discussed above, the complexity of bookkeeping and accounting will be determined by the business size and the number of transactions. The cost of a bookkeeper will also vary depending on your business and their experience. You can also agree to pay an hourly rate or a monthly fee. A bookkeeper’s rate will range from $49-$249 monthly, subject to the number of accounts, transactions, and credit cards in a month.
What To Look For When Hiring A Bookkeeper
You want to ensure that the bookkeeper you are hiring does not have hidden costs in their fee structure and only charges a fixed monthly fee within your initial agreement. Having a bookkeeper that offers full service instead of just the basic bookkeeping services is also beneficial to your business. Full-time service includes tax planning, financial audit defense, management of credit card accounts, and monthly reporting to analyze growth opportunities and current financial status.
In-House vs Outsourced Bookkeeper
The cost of hiring a bookkeeper will also vary depending on whether you have used an in-house employee or outsourced a bookkeeper from an agency. Outsourcing is better because it is cost-effective, even though you may find it overwhelming at first.
Contact us at Williams Accounting & Consulting
At Williams Accounting & Consulting, we understand the hustle of owning and operating a business. That is why we have developed bookkeeping and accounting packages for you to choose what suits you best. For more questions on bookkeeping services, reach us online or call the offices directly at 770-964-4100.