Should You Hire a Bookkeeper or a Full Charge Bookkeeper?
When considering a bookkeeper or a full charge bookkeeper, you will need to consider which one is right for your business. There is an almost endless list of struggles when it comes to running a business. From managing all of their employees to keeping track of their budget and ensuring that the business remains profitable. Managing money is an incredibly important concern for business owners. No matter what kind of business you are running, you want to be sure that you can keep track of where money is coming in and going out. You have to stay on top of expenses, build up your profit margin, and improve your inventory.
This is what bookkeeping is there for; bookkeeping allows you to manage business income and expenses, making it easier for you to pay the right expenses and manage a budget. The challenge of bookkeeping comes from choosing the best way to keep your books balanced and managed.
Many business owners may attempt to manage their bookkeeping before ultimately deciding that it is just too much to manage both the books and accompany the same time. Some other business owners may hire a bookkeeper – either part-time or full-time or full-charge – which all offer different services at different price tags.
Outsourcing your bookkeeping is another method of staying on top of the books. This is a team of financial advisors who do all of the bookkeeping for your business and put everything onto a secure server that you can access whenever you need it. There are advantages and disadvantages to each of the solutions, and choosing the right bookkeeper for you depends on a range of factors, from services offered and value to the overall speed and security of your personal information. Many business owners that are unable to manage their books the case of the outsourced bookkeeper vs. full charge bookkeeper is to determine which one will be the best suitable for their business.
What Do Full Charge Bookkeepers Do?
There’s more to keeping track of money as far as managing business finances is concerned. There are plenty of different financial factors involved in running a company, and this is what a full charge bookkeeper is for. A full charge bookkeeper is considered to be much more important than a regular part-time or full-time bookkeeper. This is because they manage accounting and bookkeeping for a company.
The main downside of using the full charge bookkeeper is where they are used; small and large businesses in their ways of managing their finances, and may be unable to effectively use a full charge bookkeeper. A full charge bookkeeper is typically a hardline average sized company that doesn’t need an accountant. They will manage things such as preparing financial statements and tax returns at the end of the fiscal year, managing accounts payable, and anything else necessary.
A full charge bookkeeper will typically handle two important aspects of the business: first, they will handle accounting, managing tasks such as invoices, accounts payable, checks, among other things. Second, they also deal with the entire banking work for a company, including tracking all money flowing into and out of accounts, reconciliations, and checking for any irregularities.
A bookkeeper whether full or part-time generally handles less when it comes to accounts. They tend to focus solely on managing and keeping track of money, with the extra accounting and bookkeeping services offered by full charge bookkeepers and outsourced bookkeepers not being offered at least not at affordable rates.
What Do Outsourced Bookkeepers Do?
Outsourcing bookkeeping is a pretty straightforward and simple process. All you need to do is upload your invoices, receipts, and bank statements each month and then they take care of everything from there. They will quickly and efficiently manage your books for you and store them on the server ready for when you need them.
Not only will you get the benefit of tracking your money, but you can also get extra services at a surprisingly low fee. This includes having your bills paid, preparing your taxes, and even more. One reason that business owners will hire a remote bookkeeping service is that they offer these services at low costs, but they may still have worries about the potential downsides of remote bookkeeping; particularly employees and security.
The good news is that remote bookkeepers ensure the servers are kept as secure as they possibly can be and that employees are also as efficient as they can be. Outsourced bookkeeping businesses are required to follow regulations and laws related to cybersecurity, and they take precautions against problems by having off-site backups and cyber insurance policies.
Employees of an outsourced bookkeeping service are not ordinary employees; potential employees will all be vetted, subject to a background check, interviewed, and will have to sign non-disclosure policy agreements to ensure that they are competent and secure. Employees work with one another on tasks to give you several people working on your books at once to expedite the process.
Cost Efficiency of Outsourced Bookkeepers vs. Full Charge Bookkeepers
Business owners can usually expect great service with both outsourced bookkeepers and full charge bookkeepers. A key deciding factor is the cost. It doesn’t matter how efficient a service is if you are unable to afford it after all. That’s why you must compare the cost of hiring different kinds of bookkeepers.
A part-time or full-time bookkeeper can cost $35,000-$43,000 annually, and they don’t offer much in the way of extra bookkeeping services. Business owners generally have no trouble deciding they have to go with a full charge bookkeeper or an outsourced bookkeeper. Then they must compare the advantages and disadvantages of both options to make their choice.
Both bookkeeping services provide efficient services with few if any, downsides. When considering price though, it becomes obvious that outsourced bookkeeping is the way to save money. It’s just not possible to hire a full charge bookkeeper for anything less than $35,000 a year. A remote bookkeeping service, on the other hand, can save you up to $30,000 a year; depending on the extra services you want.
If you were to add some extra services and took full advantage of an outsourced bookkeeping service, then you can still expect to spend less than $20,000 a year on the service. If you don’t order any special services and receive training in handling your finances, then you could be paying as little as $3,600 a year for an outsourced bookkeeper.
It’s obvious than when crunching the numbers between a full charge bookkeeper or an outsourced bookkeeper, then it’s best to hire outsourced bookkeeping services. Start comparing your options with a free quote from bookkeeping.com.