Saturday, 13 June 2015

What are the different type of outsourced bookkeeping service fees?

Having understood the need and importance of bookkeeping for your business. Now you must be having wide array of questions:

  I. How to get started?
 II. What are the different type of outsourced bookkeeping service fees?
III. What fees structure will be good to me?

I. How to Get Started?

Lets start with outsourcing bookkeeping to good bookkeeping firm. My point is to go for the good bookkeeping firm not the premium bookkeeping firm. An affordable bookkeeping service does the same job, a high price bookkeeping firm will do for you.

But yes, bookkeeper will help you with preparing and filing your payroll and sales tax return. Ideally a bookkeeper is not the one handling your income taxes.

An outsourced bookkeeping service works as your own accounting department, where your staff does every thing from recording financial transactions to financial reports preparation, preparing and filing payroll and sales tax returns. A bookkeeper can also handle your accounts payable and receivable management, enabling you to focus on core business.

Now you have a fair idea on activities of accounting and bookkeeping service, you may need internal and external bookkeeper help:

01. Recording financial transactions
02. Cash Management
03. Preparing financial reports
04. Preparing and filing payroll and sales tax returns
05. Preparing and filing income taxes

First four activities can be done on various frequencies (Weekly / Monthly/ Quarterly / Yearly) based on nature of your industry and business size. Last one is normally a yearly exercise, unless you are a large corporation.

II. What are the different types of outsourced bookkeeping service fees?

There are 3 types of bookkeeping service fees for first four activities mentioned above:

01. Hourly Fee
Under this model you are charged for the time spent by bookkeeper. It is the "Pay for what you use" model.

02. Fixed Monthly Service Fee
 As the name suggests, you are charged for fixed monthly fee based on the needs of your company. The prime advantage of this system is that you do not see any surprise, fee is fixed irrespective of time spent by bookkeeper for your business. You know how much you have to pay each month.

03. Project Cost
This applies to one time projects. You may need help for data entry, pdf conversions to words docs or excel files, or to catch up your pending bookkeeping.

III. What fee structure will be good to me?
You are the best person to evaluate your needs. Prepare a list of activities for bookkeeper to perform. Ask for price  form affordable bookkeeping service provider online.

I, Paula Barbuda, is associated with Max Data PRO an offshore bookkeeping service company based in India since 2006. Your can reach me by filling the form posted in the footer of this web page.