Outsourced accounting and accounting solutions are a rapidly growing trend nationally. The economy has changed over the past many years and businesses are looking for ways to get rid of expensive administrative overhead expenses.
Business owners are downsizing their offices to reduce rental prices; more and more workers are being hired on a part-time basis. Companies are now trying to work with outsourced companies which can offer professional services at half to a third of this cost it charges a company to hire workers in-house.
One one of these outsourced services comprises the outsourcing of accounting and accounting services. There’s a significant reason behind this change, overhead expenses. As an example, companies pay an average salary of $15 per hour to $30 per hour based on one’s experience for many accounting tasks.
If a business pays $15 per hour times 40 hours each week, it is going to cost that company $600.00 per week. Take $600.00 a week times 52 weeks in a year which equals $31,200 annually. Divide $31,200 per year by 12 months in a year and you’ll discover that it costs the company $2,600 a month to pay that worker.
Wait, what about the employees matching taxes, medical benefits, vacation pay, matching 401K if any, unproductive downtime, possible extra overtime hours, sick pay, replacement costs, hiring and rehiring to fill the position, training costs, the expense of office space, desks, computers, upgrading applications, Christmas bonuses, insurance, and the cost of security, employee theft, etc. The list goes on and it frequently increases overhead costs significantly.
By outsourcing bookkeeping and accounting solutions with a professional accounting and bookkeeping Guelph firm, you will remove all these prices and reduce off hourly prices in half. Rather than paying $31,200 per year, your prices may well be cut as much as $15,600 each year on just the hourly costs alone. When you add a worker’s total overhead costs and matching taxes, outsourcing the bookkeeping functions may end up saving a business an additional $800 to more than 1,000 dollars per month.
As you may see, outsourcing the accounting and accounting functions plays a major role in eliminating overhead costs. Yet many tiny companies still need the assistance of a secretary that can answer the telephones professionally and manage administrative duties. To be able to maintain the secretary occupied, many companies may decide to have their secretaries care of all of the bookkeeping and accounting purposes.
Regrettably, turning a secretary into a bookkeeper is a big mistake; it causes difficulties, errors, and creates inaccuracies. The accounting and accounting functions have to be accurate for management and reporting functions. The expense of training a secretary for a bookkeeper is just another additional expense a little company might not have the ability to handle.
Frequently, once the secretary is educated they will then look for employment elsewhere. Outsourcing the accounting and accounting functions to a company that has been trained in this field eliminates the problems associated with hiring, training, and rehiring a new employee.
They’re also legally accountable to act in accord with the laws regulating the handling of businesses’ financials.
What about outsourcing these services to some third world nation? Even though this might seem like a good idea at first, companies repeatedly encounter several issues surrounding the transfer of information and the security of their financials.
Outsourcing bookkeeping and accounting purposes to third world nations may save businesses money initially; however, businesses take a lot higher risk and it could wind up costing them more later on. When mistakes are made and a company needs an accurate set of books fast and someone they can talk to immediately, outsourcing those services to some other country becomes a real issue.
Employing an outsourced bookkeeping and accounting service supplier within the United States eliminates these issues. Companies can nevertheless work online remotely but with greater degrees of security, that if compromised, can be prosecuted inside the legal boundaries of the U.S. Government.
If your business is searching for ways to decrease costs without sacrificing the professional services that you expect and trust, consider using outsourced bookkeeping and accounting solutions as an alternative approach in the present market.
Learn how to lower overhead costs from outsourcing the bookkeeping and accounting functions now. Professional Accounting Solutions provides outsourced accounting and accounting solutions for small to medium-size businesses with 50 employees or less. As long as you have access to the internet, we can support businesses from any location on the planet.
Accounting and Bookkeeping for Guelph Businesses
Whether you’re a large business, a small family business, or a growing startup, your accounting — and ensuring it’s all right, on-time, and secure — matters. Regardless of your business’s size or your business, if you’re looking for business bookkeeping in Guelph, our specialist team will help, visit them for more information.