Cost-Benefit Analysis of Outsourcing Your Bookkeeping Tasks
By: vish ks
Submitted: 2009-09-21 05:42:29 | Word Count: 569
Bookkeepers are people who keep up-to-date and accurate records of accounts and financial transactions in a firm. They verify and enter information into journals and ledgers; nowadays into a computer. They regularly balance the account books and compile reports and financial statements. They may also calculate employee wages from plant records or time cards.
The pay for bookkeeping jobs depends upon experience, the level of responsibility and the Company or job location. Starting salaries range from a minimum wage of $ 15 per hour to $ 20 an hour. For bookkeepers having at least three years experience, the amount can go up to $ 25 an hour. Some employers provide fringe benefits such as paid vacations, life and health insurance, and bonuses. Other benefits that the employees may enjoy include retirement and profit sharing plans.
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There are clear advantages to outsourcing your bookkeeping functions. You can save on money by outsourcing because you won't need to pay for workman's compensation and general liability insurances, vacation, sick leave, health insurance and other usual benefits full time bookkeepers are entitled to. Just remember, these costs will be built into the consultant's hourly rates, and their fees will reflect these expenses. You may have to pay at least thrice the amount you would pay for getting the services of experienced bookkeepers.
In what all ways do you get to save money? Well, first of all, there will be no recruiting, interviewing and training costs. Most professional bookkeepers will have their own offices space, thereby saving you space within your office. So you will not be buying those extra desks, calculator, computer and computer soft wares. Your consultant bookkeepers might have to be dropped back at their office, or sometimes you may need to pick them. Although some of the bookkeepers offer remote bookkeeping service. By having your bookkeeping tasks completed off the site, your bookkeepers would be able to work more efficiently and accurately because he, in all probability, would feel comfortable working from his place.
By resorting to outsourcing, you get to have control on the amount of money spent on bookkeeping. Also you can go with just a few hours a month, and add on when you need to, and then go downward again should it be required. Can you picture an employee being asked to start with only four hours a month, then asking him to put in 20 hours a week for awhile, and then again down to four hours a month again? In all probability you would not keep them for long. You might go in for freelance bookkeepers willing to work around these variables; and even more importantly, on varying schedules.
Go for quality since your financial records constitute an important part of your business functioning. And without efficient bookkeeping functions, you cannot expect to succeed, no matter what type of business or industry you are operating in.
Some of the tasks they accomplish include posting accounts receivable and payable, preparing bank deposit records, recording payrolls, maintaining inventory records, purchasing supplies, preparing purchase orders etc. Bookkeepers may also have to make schedules, sort documents, and file the bills. These types of mundane jobs are found in every industry and carry various job titles such as accounts payable clerk, assistant bookkeeper and the like.
Author Resource:-
Vish is an SEO copy writer;for more information about Bookkeeping and Bookkeepers,visit lbks.co.uk
