Tuesday, July 2, 2013

The Benefits of Hiring a Bookkeeping Firm

Having managed an operation, I know firsthand how difficult a decision it can be to outsource a service.  We fear a loss of control which could ultimately result in failure of our business.  We are concerned that somehow our business will receive a lessor quality from a firm than it will from employees. 

While caution should be exercised in making a decision of this type, there are times when selecting a professional service provider over an employee is a good move.  Not all services should be outsourced.  But day to day bookkeeping for the small business can often be provided by the right bookkeeping firm much more effectively than hiring a bookkeeper as an employee.  Consider the following:
  • Cost Savings
Even if you hire an employee for a low-wage, after adding tax costs and benefits, you face much higher costs than you would expect.  Consider hiring an employee for $10 hourly.  Even with no other benefits, you face a pay rate of over $11 hourly once taxes and unemployment insurance have been added.  Then multiply this times 2,080 hours annually and you'll find yourself paying over $22,000 annually.  If you decide to only hire someone half time, that's still over $11,000 a year.  Now consider the cost of hiring a professional bookkeeping firm.  A professional firm will accomplish tasks in a much more efficient manner than an employee normally will.  Plus you are not charged for down time, only for billable hours.  Also, negotiating a flat fee per month will prove a great option in the long run.  If you would hire a part-time bookkeeper at 20 hours weekly, you should expect to pay a professional firm around $300-$500 monthly for this service.  Let's just assume you average $400 monthly.  That's $4,800 annually instead of the $11,000 for a part-time bookkeeper. 

  • Reliability
Turnover can be detrimental to the small business.  Losing the bookkeeper at the wrong time can leave the business owner or manager in a huge lurch.  This should not be an issue when you hire a reputable bookkeeping firm. Even if the bookkeeper assigned to your business leaves the firm, you can rest assured the firm will assign someone competent to the job. 

  • Higher Quality of Service
While you may be able to hire just the right person as a bookkeeper, more times than not this will not be the case.  Many times, you unfortunately hire someone who turns out being less than qualified and essentially causes a huge cleanup of your books to be necessary which can cost you big dollars.  But by hiring a high quality bookkeeping firm, you should be able to trust their work and you can know there are better avenues to hold the firm accountable legally should they underperform.  Quality can be the difference of success or failure.

In conclusion, don't be afraid of considering a great bookkeeping firm to provide services to your business.  Here at Sutton Business Solutions, we stand ready to assist you by providing these services to you.  Call today for an affordable proposal for your business.

Bobby Sutton
Managing Director
615-534-0117
907-331-0135