How to reduce your bookkeeping costs?
In this economy, it is prudent to cut costs wherever possible. If you are a small business, you must try to reduce the expenses in every possible function of your business. Bookkeeping is one such function where you want to cut costs, but at the same time not lose accuracy or clarity on the status of the books.
How much does it currently cost for your bookkeeping? What are the bookkeeping rates you currently pay to the bookkeeping provider? The typical bookkeeping hourly rates start from about $25. If it is a bigger metro like New York you may be paying a lot more. That is the starting price. So, how can you bring it down?
You can use online bookkeeping service or outsourced bookkeeping service where the bookkeeping rates start from just $7 per hour. The bookkeeping services are provided from offshore country like India, but the quality of the books is very good. The bookkeeping rates of the outsourced bookkeeping service will be lot higher if the service provider is local in USA. You may not be able to see a big reduction in bookkeeping rates.
How will you calculate the bookkeeping rates if you have an in-house bookkeeping team? Just assume you pay a salary of 35k to your bookkeeper. If you calculate an overhead of 30% on top it will be about 50k per year or $4000 per month. If you divide them by 160 hours it is $25 per hour. So it does not really mater if you use a bookkeeping service or do it with in-house bookkeeper, the bookkeeper rates start from $25 per hour.
Weather you use in-house bookkeeping team or a third party bookkeeping service, the bookkeeping rates typically start from $25 per hour. If you want to reduce the bookkeeping rates, go for outsourced bookkeeping service.