Bookkeeping Rates - Cheaper V Quality

Written on the 2nd of December 2009 by Michelle Carr

Small Business owners searching for a bookkeeper tend to focus on the hourly rate charged by the bookkeeper and base their decision on what they anticipate will give them the best savings rather than looking or considering other factors that may influence what they will actually receive per hour for their investment.

Bookkeeping support from a subcontract bookkeeper to a dedicated Bookkeeping Company can vary from $30 per hour up to $60 per hour and there are many factors to consider what is a fair and adequate price to pay for your bookkeeping service.

If your Business requires an onsite bookkeeper then you can expect to pay a little more than an offsite bookkeeper. Is the service a one off assignment or ongoing, are your records adequately sorted or in despair.

Business Owners should beware that there could be a number of reasons that a bookkeeper is charging lower fees such as inexperience or lack of industry knowledge.
Some important factors to consider when considering comparing a lower rate to a higher rate would be the following.

• Will the bookkeeping be completed in the same time frame. A person who will charge $30 but be inexperienced may take 5 hours to do a 2 hour job and therefore your costs are higher. Consideration : A Bookkeeping Company or Administration Support Company who will package your service with a lower rate for data entry and a higher rate for the bookkeeping.
• Outsourcing your bookkeeping and Administration to a Bookkeeping Service Company completely can also be more cost effective for your business in the long term. You generally will have no software costs for upgrades or licencing. Consideration : Depending on your business it can also save on office space, rent and other overheads.
• Reliability is also an important issue to consider. A dedicated company will have accountability, no down time and other people to help you if your dedicated support person is not available. Consideration : This could save you thousands in fees with the Tax Office and other fees and charges and gives you a full time support.
• Knowledge and Industry experience. Outsourcing and paying a slightly higher fee will also ensure you are in experienced hands as Bookkeeping Companies constantly train and upskill their staff and have ongoing support from professionals. Consideration : Getting the appropriate tax deductions and offsets for your business to minimize tax.

Therefore it is evident that by engaging the cheapest bookkeeper you could actually be costing yourself and your business more time and more money. Business owners should seriously consider investing in a Bookkeeping Company that may have slightly higher rates but guarantee the highest quality, experience and maximise every dollar spent for your business.

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