How Much Should You Be Paying for Accounting Each Month?
September 7, 2018
admin@ohi
The process of accounting forms the thrust of every business functioning and is perhaps considered one of the most important finance-related administrative work that a management undertakes.
Talking specifically about small and medium businesses, the accounting needs for such businesses vary greatly.
For instance, a small business that has just started its operations may only need to undertake basic bookkeeping while a business that is beginning to expand its operations might require an advanced accounting system.
In this article, we give you a gist of the prices of different types of accounting services that small or medium enterprises incur.
When considering accounting services for a firm, there is a range of options to choose from. If you require only basic bookkeeping, you can hire a part-time bookkeeper. Bookkeepers are essentially in charge of maintaining your accounts including but not restricted to payment of routine bills, maintaining ledgers, and recording everyday financial transactions in the account books. In case you feel that your accounts need to be managed with greater precision, opt for a full-time employee or for that matter, outsource the accounting operations, depending on your budget.
Part-time Accounting
The cost of accounting services charged by part-time accountant’s ranges around $20/hour and varies depending on the location of your business and the expected job profile. Such accountants are capable of undertaking basic accounting jobs such as tracking daily transactions, managing billable and the like.
Full-time Accounting
Full-time accountants charge anything between $35,000 to $55,000 per annum along with perks and a permanent office space. If a small or medium business is operating from a big city in the USA like New York, the salary expected could be as high as $70,000. It is, therefore, advisable to hire a full-time accountant only when your accounting needs are complex and require constant attention.
For small and medium businesses that cannot manage a big office space or who find it difficult to accommodate a permanent accountant, there is always an option to outsource their accounting needs. While the price that accounts outsourcing firms charge varies from location to location, the setup and the experience level. The average price could be between $600 to $2,500 per month.
It is no surprise that most small or medium-sized enterprises opt for outsourcing their accounting jobs since the cost of accounting services is quite affordable along with several other benefits that come attached with outsourcing, some of them being:
Professional accounting and bookkeeping by highly skilled workers
Advanced tools and programs to analyze business finances
Saving of operational cost of the business with respect to salaries of accountants or managing additional space for accountants
Helping small businesses to focus on their core operations and policy-making
Choose the right fit for your needs
There is no single best option to manage accounting. Figure out which type of accounting works best for you by examining your business needs and suitability to maximize your utility.
Conclusion
Determining the appropriate monthly expenditure for accounting services is a nuanced decision that varies based on the size, complexity, and needs of each business. While it’s tempting to seek the most cost-effective solution, it’s essential to recognize the value of accurate and timely financial management. Investing in quality accounting ensures not only compliance but also provides invaluable insights for informed decision-making. Businesses should assess their specific requirements, consider the scalability of services, and weigh the potential long-term ROI of their accounting investments. Ultimately, the right monthly spend on accounting is one that balances cost-efficiency with the assurance of financial accuracy and strategic insight, positioning the business for sustained growth and success.
