Bookkeeping services are one of the most important elements which define the success of a small business. Not only do they provide the business with a firm foundation but they also ensure that the routine financial transactions of the company are recorded with extreme accuracy and exactitude.
However, with a plethora of bookkeeping firms coming up everyday, it is vital to identify which one can meet your needs the best. As costing is a significant part of determining efficiency, one must be aware of how much the bookkeeping services for small businesses might actually charge.
Nevertheless, even before one determines which is the most affordable service to recruit, it is only appropriate to identify what exactly a bookkeeping firm can do for them.
What Do Bookkeepers Do for Small Business?
Most bookkeeping services for small businesses in India undertake the following responsibilities:
- Maintaining record books with utmost precision, every day.
- Making data entries into accounting ledgers.
- Tracking financial transactions and generating financial reports.
- Creating, entering and sending customer invoices.
- Payroll billing and taxation functions.
- Reconciliation of different bank accounts.
- Preparing documents for lending audit support.
- Ensuring corporate compliance.
Apart from the aforementioned, they render crucial assistance to small businesses throughout their period of incubation, establishment and maturity.
How Much Should One Pay for Bookkeeping Services?
The costing process usually depends on a variety of variables like company size, amount of monthly transactions conducted, methods of payroll processing, number of invoices being sent out and the number of ledgers to reconcile.
More so, it also relies upon the policies and procedures of both, the hiring business and the hired service.
It is also essential to note that bookkeeping service charges may vary from one place to another. For example, the bookkeeping services for small businesses in Pune will charge very differently than their counterparts in Mumbai.
However, none of them will go below the minimum or exceed the maximum standard rates.
To begin with, a business needs to determine whether they need a bookkeeper on a daily, weekly or a monthly basis. Once this is decided, it needs to be ascertained if the bookkeeper should be employed on a part-time or a full-time basis.
- If a business is recruiting a part-time bookkeeper, the monthly cost would fall in the range of 5,000 to15,000 INR.
A part-time bookkeeper is usually recommended if the business can largely perform the major bookkeeping functions on its own and only requires help from outside to do the routine work like filing papers and managing documents.
- If the business decides to employ a full-time bookkeeper, the monthly cost would be somewhere around 25,000 to 50,000 INR.
Hiring a full-time bookkeeper is recommended when the business has already created a stable customer base and has been operating for at least three to five years. This would ensure that the benefits a business derives from recruiting more staff are more consequential than the costs it incurs by hiring them.
- If none of these strategies work well, bookkeeping services can always be outsourced at a nominal price which generally falls in the range of 15,000 to 30,000 INR. Outsourcing, especially when it is done online, does not just make financial sense but it also places a massive variety of skill sets at the business's disposal.
Bookkeepers vs Accountants
A lot of small businesses tend to place bookkeeping under the broader purview of accounting and think that hiring an accountant instead of a bookkeeper would be a cheaper option.
They often struggle with questions like how much should an accountant cost for a small business or how much do accountants charge per hour.
Nonetheless, it would be wise to remember that accountants usually charge on a project-by-project basis. But if they are hired in a full-time capacity, their salary would begin from the range of 40,000 to 50,000 INR.
Additionally, the benefits provided as a part of the salary package would further raise the costs incurred by the business.
The Way Forward
In an era of cut-throat competition, bookkeeping services for small business provide an extra edge.
They induce a semblance of professionalism in a business and make sure that it thrives despite a fluctuating financial climate. In other words, good bookkeeping services provide a starting point from which a small business can radiate in multiple progressive directions.
Paysquare can be a dependable partner for a business' bookkeeping and accounting needs. With its expert team and advanced technological practices in place, one can expect nothing but the best service from them.