Friday, August 29, 2008

Bookkeeping Rate - How Much Does a Bookkeeper Cost

What do you do when you can no longer keep track of your accounting books anymore? Even if you know the rules in taxation and in creating financial statements, when your business is going uphill, you definitely need some help. That's when you start looking for a freelance bookkeeper.

Hiring a bookkeeper, though, is not a joke. First of all, you have to look for someone who can do the job that you require. Second, you need to consider about the bookkeeping rate, which today can range from $15 to hundreds of dollars per hour. It's important that when you're in the selection process, you have some criteria in your mind. You can make use of the following:
  1. Level of education. Keep in mind that a bookkeeper doesn't really have to possess a degree in accounting. Nevertheless, those who do will always have an edge for those who are none. Since they already have a good background, they are much easier to train, and they basically understand the concepts in business, such as payroll, taxation, and cash flow, to name a few. Normally, those with degree could have a higher bookkeeping rate. What you can do is to look for those who are just starting out in the field, perhaps a new graduate. They could give you a much cheaper bookkeeping rate, and they can start building their portfolio in your company.

  2. Experience. Experience plays a great role in determining the bookkeeping rate. Even if he may not be a graduate in accounting, but if he has intensive experience in the field, his wage per hour can definitely go up. He already knows how to develop a payroll, organize and record invoices, create financial statements, and even process your business papers. They could be pretty expensive, but you will be able to save a good amount of time for training them. Needless to say, however, you don't have to go overboard. Be a good judge if his experience is truly commensurate to his bookkeeping rate. If in doubt, don't be afraid to ask for references or more credentials.

  3. Level of know-how. There are certain rules in bookkeeping that do change. A good bookkeeper is someone who is very much aware of them. He should always be updated and be able to reflect the modifications in the way he does his bookkeeping job. It pays to interview your potential bookkeeper first before you hire him or give his bookkeeper rate. You can ask for his insights about the world of bookkeeping and what changes are already in place. You too can also read an overview of some of them, so you can come up with your own questions.

  4. Capacity to do the job. Most of all, the bookkeeping rate should be based on what job you are going to give him and how well he is able to do it. If he is going to perform almost 90 percent of all the bookkeeping job, then his bookkeeping rate should be higher. If he only needs to focus on certain aspects, perhaps payroll or invoicing, then you can search for someone with much lower bookkeeping rate.

  5. Overheads. You need to add all the benefits like payroll taxes, medical benefits, social security, office space etc to really understand the effective cost of the bookkeeper.

About the Author:

Many offshore bookkeeping firms offer good Bookkeeping Rates. There are many reputed and experienced Bookkeeping Firms that offer attractive Bookkeeping Rate and cater to small and medium businesses and CPA Firms worldwide.

2 comments:

shubh said...

Indeed, a nicely written article guiding people to hire a freelancer to accomplish book keeping tasks at low price. An article ‘Selective ----- Perspective’ at http://outsorcerer.com/blog/?p=46 too may be a good source to know more about hiring a perfect Virtual Assistant.

Belle said...
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