How much does it cost to outsource bookkeeping?
For small organizations, the cost of outsourcing accounting and outsource bookkeeping can range from $500 to $5,000 per month. There are numerous things to consider when determining the cost of outsourcing accounting for every company. Although this may appear complicated or frightening, the accounting partner you’re speaking with performs this daily and should be able to simplify and perhaps even make the scoping process enjoyable. For some, change can be frightening, while for others, it can be exciting.
The obvious objectives are to acquire new skills, save money, and strengthen systems and internal controls.
Your ultimate goal should be to locate the ideal partner for you, one who shares your values and is a good fit for your company.
“Outsourcing your accounting can save you 40% – 60%.”
WHAT FACTORS AFFECT THE OUTSOURCING COST?
Profitability
For some industries, revenue may be one of the most important measures of price potential. The more your sales, the more work your accounting team will have to do. This isn’t always the case; consider a pre-sales backed startup. There may still be a lot of work to be done with no money in the bank.
INDUSTRY
The business model of most industries has inherent complexities and common demands. Professional services must fully comprehend work costing to flourish in an industry with specialized accounting needs. Inventory-based accounting is necessary for ecommerce enterprises, and they must be built to scale.
HEADCOUNT
Employees can indicate the amount or complexity of a project. Some firms require a large number of people to expand, while others may expand quickly with few human resources.
Cash flow
HOD
Although the goal is to automate as much of the accounting process as possible, it is still a human-based service. The more effort required, the longer it will take to accomplish. Your fee may be determined by your team’s location. Onshore, offshore, or a combination of both outsourcing options are available.
An onshore team will, of course, be more expensive than an offshore team.
A mixed partner, who combines the advantages of both while addressing the majority of the worries about off-shoring, will deliver the best of both worlds. For what you get, this is usually the most cost-effective option.
SOUGHT-AFTER SERVICES
Taking care of a customer’s outsource bookkeeping is not a one-size-fits-all solution. Understanding what you want your accounting partner to perform for you will be necessary for pricing. Aside from bank activity code, you may choose to outsource stand-alone functions such as:
Invoicing for Sales
Accounts Receivable
Processing of Payroll
Budgeting and forecasting are two terms that are used interchangeably
Analysis of the Financial Situation
How Much Should Bookkeeping Services Cost?
The costing process is usually determined by several factors, including the size of the organization, the number of monthly transactions completed, payroll processing techniques, the number of invoices sent out, and the number of ledgers to reconcile.
It also relies on both the employing company’s and the hired service’s policies and processes.
It’s also worth noting that the cost of bookkeeping services varies from one location to the next. For instance, bookkeeping services for small businesses in Pune will be far more expensive than those in Mumbai.
They will not, however, go below the minimum or above the maximum specified rates.
– If a company hires a part-time bookkeeper, the monthly cost will range between 5,000 and 15,000 INR.
A part-time bookkeeper is usually advised if the company can handle most of the bookkeeping responsibilities on its own and simply needs support with routine tasks like filing papers and document management.
– If the company decides to hire a full-time bookkeeper, the cost per month will be between 25,000 and 50,000 INR.
When a company has a steady customer base and has been in operation for at least three to five years, hiring a full-time bookkeeper is suggested. This ensures that the benefits a company receives from hiring more people outweigh the costs of doing so.
– If none of these techniques work, bookkeeping services can be outsourced for a small fee, which typically ranges from 15,000 to 30,000 INR. Outsourcing, especially when done online, not only makes financial sense but also gives a company access to a wide range of skill sets.
