Is it cheaper to outsource accounting?
How much should I pay an accountant for my small business?
Most accountants charge by the hour and their prices vary depending on their expertise and services that they offer. You can expect to pay between $30-300 per hour based on all of the factors and the area that you live in. If you are wanting to bring an accountant on board as an internal employee, you will need to offer an hourly rate or a salary that is commensurate with the experience you are seeking and your industry standards. Overall, the average cost of accounting services for small business is between $35,000 to $55,000 for a bookkeeper’s salary or between $250-2,500 per month for outsourcing your accounting.
Can you outsource accounting?
Absolutely! Many small businesses reach a point in their growth where the day-to-day financial tasks are overwhelming, but they can’t quite stretch to bring another employee in—or do not want to train an internal accounting hire. Outsourcing accounting services for a small business is a great solution to take the burden of those tasks off of business owners or senior employees. These days, because a lot of financial transactions take place online, it’s very easy to set up software and give access to an outsourced accountant so they can integrate smoothly and easily without ever having to set foot in your business (and you won’t have to spend tons of time figuring out what information you need to provide them). Outsourcing accounting is typically painless, especially with an outsourcing solution that is experienced and provides comprehensive coverage.
Should a small business outsource accounting?
While it’s clear that you can, the question remains: should you outsource accounting? What are the pros and cons? Some small business owners get nervous about the loss of control, since they may not be touching all the financial transactions every day as they have previously. However, with proper communication and clearly defined roles and procedures, outsourcing your accounting can actually give you better control over your finances because these experts can help you understand and give you a clearer picture of your overall financial health.
Additionally, business owners may worry that you can’t walk down the hall and talk to your accounting team or that there may be hidden costs when outsourcing. These disadvantages can be present if the outsourced solution you choose is the wrong fit, but won’t be an issue if the outsourcing firm is communicative and transparent. Hiring an external accountant comes with the benefit of having extra eyes on your finances to help catch silly mistakes (and prevent fraud!) and having expertise and resources that you may not otherwise be able to afford or access. Overall, the advantages of outsourcing your accounting often vastly outweigh the negatives, and with an experienced and dedicated accounting firm, you will find that your back office doesn’t have to be a burden or a worry any longer.
Is it cheaper to outsource accounting?
The answer is…probably! Of course there are variables, and your business may be in a situation where it is more cost effective to bring a new employee on board to handle the accounting, but generally outsourcing accounting is more cost effective for small businesses. We recommend you reach out to an outsourced accounting firm to get a proposal so you are able to accurately assess value. Another aspect of outsourcing your accounting that makes it cheaper for you is that transferring those tasks to someone else frees up your time – which is valuable! So not only can you save money on overhead and salary, you also can look at how many hours you save at your own hourly rate. After outsourcing accounting, business owners often wonder why they didn’t outsource sooner, as they have time to transition to business critical tasks and problems that can only be solved by an owner.
Where do you start when looking for outsourced accounting?
If you are looking for a flexible, affordable, and customizable outsourced accounting solution, look no further than Milestone. Our team of CPAs and industry experts is here to be your team and to help you streamline financial operations and maximize efficiency. From bookkeeping and accounting to outsourced CFO, Milestone has the solution that works for your unique needs. Don’t take our word for it though! Bryan Neale, the founder and CEO of Blind Zebra, says that “The Milestone team is fantastic. They keep my financials in good shape and provide the information I need to make smart decisions.”
We are proud to be part of entrepreneurs’ success and to help enable them to reach their dreams. Discover the difference today and see what you can achieve with Milestone.
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