Bookkeeping and Accounting Prices
If your organization has a current staff of employees that are taking on accounting and bookkeeping workloads, outsourcing this provides substantial cost advantages. According an Everest Research case study, IBM was able to optimize their finance and accounting outsourcing processes, which according them helped, “shed 10% of our finance resources while improving our asset management perspective by 40%. That’s freed up tens of millions of dollars in working capital.”
Some companies are saving upwards of 50% on outsourcing bookkeeping services. It is important to look at the prices of bookkeeping services as cost savings instead of additional prices for your company. The cost analysis for hiring a bookkeeper often extends far greater than simply the wage rate he/she is making. A cost analysis should include benefits, overhead and the cost of training. Typical bookkeepers will run you an average of $13-$18 per hour on top of insurance and tax costs. Conservative estimates which include the time training, wage, and all other factors put an average bookkeepers total cost to your business at around $45,000 a year. However, the average competitive rate for outsourcing bookkeeping and accounting services is right around $15-$20 per hour;, these services will not need 40 hours a week to service your business.
Businesses need to realize the investment decision based on internal and external core segments. The internal focus will harp on the costs of employees and accounting technologies internally. Where external focus will highlight the outsourced firms skills and competencies and how they are using them to save where necessary. According to the same Everest study, 80% of outsourcing firms are using flexible technology investments to improve processes, reduce development costs and ultimately the cost of outsourcing.
To gauge where businesses are using outsourcing, an Accenture survey gathered insights from organizations that have outsourced business processes. Many of these organizations were able to benefit in the following areas:
Access to the latest technology (named by 62 percent as a benefit of their outsourcing arrangement);
- Better performance measurement and management (51 percent);
- Improved quality management and control (48 percent);
- Improved analytics for decision making (44 percent);
- More strategic view of the business, including ROI (34 percent).
Ultimately, the price of outsourcing accounting and finance segments of your business comes down to your needs. If you are looking for basic bookkeeping service, expect to pay around $1,500 per month where additional services like accounting and payroll will add to the costs. When comparing price quotes from bookkeeping and accounting vendors, be sure to make sure that your budget takes in to consideration your potential cost savings and ROI.