When you started your business first, you maybe did your own bookkeeping; and it worked well. You were short on spendable capital and most of the essential tasks were the only way to start. But eventually, you came to a point where you really required concentrating on the production aspects of your business and hiring others to attend to the details. Recognizing when this point occurs is the first great challenge for the entrepreneur. Many will pass it by, believing that the way to keep track of their company is by doing all the counting themselves. This is a great trap to which almost everyone is at risk. Do not feel bad if it happened to you, just rectify it!
Accounting Assistant’s Duties
Then, when you have made this decision, you must decide between hiring an employee to keep the books and subcontracting the work to an accounting or bookkeeping company. Let’s first see what the accounting assistant expects. This can include a few or all of the following:
- Keep an up-to-date and correct record of all financial transactions of the company in journals and ledger or on a computer system.
- Periodically, usually, monthly, they balance books and prepare financial statements and other organization reports.
- Receive a register, deposit cash and pay the company’s invoices. The balance bank statements daily, investigating and correcting any discrepancy.
- Calculate the payroll and issue payroll checks. You can monitor this function with a third-party payroll company.
- Maintain inventory records and analyze product costs.
- Purchase of supplies
- Prepare purchase orders
In addition, you may want somebody to schedule, submit invoices, classify documents, complete in the switchboard and other duties that require someone in the company. You must take this into consideration.
Hire an Employee
The type of work described above can be called various things in various companies. Several typical titles are accounting, accounts payable or dependent receivable or billing clerk. To maintain consistency, we will call it an accounting or bookkeeping assistant. To hire an experienced bookkeeper for your company, you can expect to pay between $15 and $25 hourly, just depending on the experience. Add to this the extra costs of employees: paid vacations, sick leave, bonuses, insurance, retirement, benefit-sharing plans, etc. You will possibly find somebody who needs to work 40 hours a week more easily than a part-time worker, but that is not impossible. In any case, you will be blocked from paying a certain minimum amount of hours, regardless of the amount of work that actually exists.
However, you can outsource your regular accounting duties. There are several cost-saving benefits to take this route. It will not pay the expenses of the employer’s payroll tax, employee advantages, and liability insurance. These costs, of course, will be incorporated into the consultant’s rate, so it is a wash at best. However, you still save money, as you have no recruitment costs and interviews or training costs. If you are not satisfied with the service, there will be no extra recruiting, interviewing and training costs to replace your assistant. You will not have to worry about employee demands. You can free an outsourced bookkeeping assistant without increasing your unemployment rates.
Always keep in mind, “You get what you pay for”. If you decide to hire or outsource, the bookkeeping records are the core of your firm. Your business will have a hard time succeeding without excellent bookkeeping.