Every business, regardless of its scale, has to plan for accounting. The tasks like payroll, stacking credit card receipts, sending invoices, preparing financial statements, etc., are needed to maintain smooth business operations regardless of the size of the company. Even family-owned firms require regular bookkeeping to make sure accurate records are kept and financial reporting and tax compliance are achieved. However, carrying out these activities in-house might be tedious, and hence businesses look forpayroll and bookkeeping services to help them streamline these tasks and keep them up-to-date. A good bookkeeping record can help companies in tax planning and save some money. Let’s discuss the cost of outsourcing payroll and bookkeeping services for small businesses.   

Tasks executed by payroll and bookkeeping services for small businesses

Most payroll and bookkeeping services for small businesses perform the following tasks.

• Maintaining record books with 100% accuracy on a daily basis
• Tracing financial transactions &creating financial reports.
• Make data entries into the accounting ledgers.
• Creating, entering & sending all types of invoices.
• Payroll billing and tax planning.
• Reconciliation of various bank accounts.
• Creating documents that will help during internal and external auditing
• Make sure corporate compliance is achieved.

Along with the above tasks, payroll and bookkeeping services offer crucial assistance to small firms throughout their period of incubation, establishment & maturity.

How Much Should One Pay for payroll and bookkeeping services?

The costing process for availing of payroll and bookkeeping services generally varies based on factors like company size, monthly transaction frequency, methods of payroll disbursement, number of invoices sent out to clients, and the number of ledgers to reconcile. Additionally, it also relies on the policies & procedures of both the hirers and the hired service. 

It is also crucial to note that payroll and bookkeeping services costs may vary from one city to another. Ex: the payroll and bookkeeping services for small firms in Adelaide will be different for firms located in Queensland. However, none of the service providers will go below the minimum charges or levy more than accepted standard rates.

Initially, a small business requires an assessment of whether they need a bookkeeper on a daily, weekly, or monthly basis. Once this decision is made, it has to be ascertained if the bookkeeper is hired on a part-time or a full-time basis. If a small firm is recruiting a part-time bookkeeper, the monthly expense will range from approximately $ 93.39 to $ 280.16. On the other hand, If the business wishes to employ a full-time bookkeeper, the monthly cost would range around $ 467.14 to $ 934.15.

Outsourcing for full-time payroll and bookkeeping services is recommended only when the small firm has already established a stable customer base and has been in operation for 3 to 5 years. It would ensure the outsourcing cost is significantly lesser than hiring an in-house team for managing payroll and bookkeeping activities. 

If none of the above strategies work, then payroll and bookkeeping services can always be hired at a nominal price. Also, Outsourcing, especially through online, will not make financial sense, but it also enables small businesses to get access to a variety of skill sets that will help the companies to function like a well-oiled machine. 

These days there is cut-throat competition among businesses, and outsourcing payroll and bookkeeping services for small companies may offer an extra edge. An excellent payroll and bookkeeping services provide a starting point from which a small business can blossom in multiple progressive directions.