Running a business is not an easy task and you may not have the time to manage your own business books. If you are considering hiring a bookkeeper, one of the first things you will consider is how much does a bookkeeper cost? Below is an overview of the need for a bookkeeper and how much it costs.
Does Your Business Need a Bookkeeper?
Keeping accurate and up-to-date financial records is a crucial aspect of running a successful business. While it may not be the most thrilling task, bookkeeping plays a significant role in making sound financial decisions. By keeping track of your expenses and revenue, you can gain a clear understanding of your business’s growth and overall financial health. Additionally, maintaining an organised bookkeeping system can help prepare you for tax season by ensuring all necessary documents are readily available. Their prepared documents are submitted to small business accountants for further tax return preparation.
How Much Does a Bookkeeper Cost?
How much a bookkeeper charges per hour will depend on the services they offer. Moreover, what your business is about, what your requirements are, and the volume of financial data your company produces will affect your bookkeeping bill every month. Bookkeeper hourly rate in Melbourne depends on various factors. Here is the estimated average hourly rate of a bookkeeper (note: the rate may vary from one bookkeeper to another):
- General bookkeeping: $80-100
- Setting up software: $120-150
- Ongoing bookkeeping: $150-200
- Bank reconciliation: $170-200
- BAS and GST: $250-300
- Accounts payable: $250-300
The following are some factors that decide how much a bookkeeper will charge:
- Location
- Qualification
- Experience
- Types of services
- Size of your business
More complex bookkeeping services come with a higher cost. Therefore, make sure you know what type of bookkeeping services you are getting from a bookkeeper. For instance, BAS lodgment may come with a higher cost.
What Does a Bookkeeper Do for Your Small Business?
When it comes to running a business, prices are important. However, bookkeeping is not an area where it’s wise to cut corners. Hiring a professional service can save you money by reducing the time spent on basic tasks. If you have a small or medium size business, it is the right time to hire a bookkeeper. Bookkeeping services involve the following:
Double Entry Bookkeeping
Double-entry bookkeeping depends on the fact that every financial transaction is recorded in at least two ledgers. This type of bookkeeping needs your debt to always be matched with your credit. This is one of the oldest and most used types of bookkeeping. Melbourne bookkeeper understands the purpose of each transaction. That’s why you should always hire a reliable and experienced bookkeeper.
Receivables and Payables
If your business doesn’t earn money, then there is no means to run a business. Your bookkeeper will be responsible for managing receivables, which means generating and recording invoices accurately. This is how you ensure a simple income flow with minimum late payments. When you don’t pay your supplier on time, it will turn into a huge problem. If you are not aware of your debt, then it will be impossible to maintain a healthy cash flow.
Payroll
The salaries of your workers are confidential data, that’s why your bookkeeper needs to be reliable. Your bookkeeper must know about income tax. They should have complete knowledge about newly announced laws. Therefore, it is best to hire a bookkeeper who has experience working with businesses in your field.
BAS Preparation
To lodge your business activity statement, you must have all your information and your records ready. To prepare BAS, you must have a reliable bookkeeper by your side. They need to lodge BAS on time to avoid penalties or fines.
At first, managing your books may seem easy, but it can become difficult as your business expands and transactions increase. Hiring a bookkeeper or bookkeeping service will ensure compliance and allow you to concentrate on generating revenue without worrying about bookkeeping.
Conclusion
Many business owners cut corners when it comes to hiring a bookkeeper to save money, but they spend more by making bookkeeping mistakes. Therefore, avoid spending unnecessarily and get help from a Reliable Bookkeeping Services provider.