Over recent years, small business owners are becoming more and more privy to the advantages of back-office process outsourcing. Which is great–why throw all your time, resources, and budget into one or two staff members who may or may not work out, when you can hire experts in each individual field?
Outsourcing services can offer business owners support in fields like HR, payroll, IT, phone reception, bookkeeping, accounting, and more! And as we’ve discussed before, outsourcing doesn’t have to mean overseas outsourcing.
Of course, one big question looms–how much does this all cost? Each industry and specialty will have its own associated costs, but today we’re going to take a closer look at bookkeeping.
The Importance of Bookkeeping
Bookkeeping is an essential function for every business, no matter the size, industry, or age. Bank and credit cards accounts must be reconciled, accounts receivable and payable has to be done, and you (the business owner) NEED to have accurate financials to know where you and your business stand. After you grow out of doing all of this yourself, how much will it cost to get some help?
Before reliable back-office services companies became more prevalent, the first instinct was often to hire a person to do the bookkeeping (and usually, lots of other things). Now, thankfully there are many more options.
Back Office Outsourcing Services
A quick Google search will bring up a plethora of back office process outsourcing and bookkeeping companies, but let’s use someone we know well as an example: QuickBooks.
Did you know they offer bookkeeping support? It’s basic, but they do. Using QuickBooks live bookkeeping will cost you between $300 and $700 per month, based on your average monthly expenses.
Now, that’s only end-of-month work. QuickBooks does not do the day-to-day things like sending invoices, receiving payments, making sure your staff gets paid on time, reconciling to the POS system … the list goes on. BUT, this can still be a good solution for a simple or new business.
TheOfficeSquad Pricing Model for Back Office Outsourcing
Next, let’s look at TheOfficeSquad’s model and pricing. Because of the large list of possible services (a few examples given just above), our pricing can vary quite a bit. The bookkeeping basics start at $350 per month. Most businesses need hands-on support, so adding tasks like AR, AP, payroll processing, and more bank and credit card accounts usually drive the cost closer to $1200, with our average bookkeeping client paying $900 per month. This service includes a QuickBooks subscription (online or desktop), insured and accountable bookkeepers, cross-training, and client support, all under one local roof.
Finally, let’s do a little math on what it may cost to hire one person to help with your business’s back-office operations:
Conservatively, they’ll work 20 hours per week for about $20 per hour: $1600 per month.
Now let’s add 20% for payroll taxes and workers comp insurance: $1920. This is before PTO, benefits, sick days, etc. And, what happens when this person leaves? You start all over with training, and in the meantime, you’re once again stuck doing the bookkeeping yourself.
Final Thoughts
Investing in yourself and your business is never an easy task. Budgets are important to small businesses, but don’t forget to consider the long-term costs of NOT doing something. Spending money on good, trusted support is an investment in the future of your business. If we can ever answer any questions for you, please don’t hesitate to contact us.
