How Much Should a Small Business Spend on Bookkeeping?
Published on May 23, 2023
As a small business owner, you may have experienced sleepless nights fretting over your company’s finances and how you’re going to turn a net loss into a net positive. Considering bookkeeping services is the last thing on your mind. You don’t have enough room in your headspace to think about another business expense.
But here’s the harsh truth: Virtual bookkeeping services can save you a lot of money, time, and sanity in the long-run. You may be overestimating the overall costs, and by doing so, inadvertently holding your business back from reaching its full potential.
The question of “So how much should a small business spend on bookkeeping?” is not one-size-fits-all. The answer hinges on various critical factors (e.g., size and nature of your business, complexity of your financial transactions, specific services, business goals). I can only hope that by the end of this article, you’ll make an informed decision that improves your small business’ financial management system.
Cost of Hiring Bookkeeping Services Depends on Your Needs
Every business has its own unique financial needs – meaning the cost of hiring bookkeeping services will directly correlate to those requirements. The more comprehensive the services, the higher the associated costs will be.
For starters, determine the scope of bookkeeping services required for your small business. This may include tasks such as managing accounts receivable, accounts payable, reconciling bank statements, and generating financial reports. Additional services include payroll management, inventory tracking, or tax preparation.
As for whether you should go for outsourcing or in-house options, weigh the pros and cons. Outsourcing bookkeeping services often leads to cost savings as you only pay for the services you need and avoid overhead expenses (e.g., salaries, benefits, training). However, in-house bookkeeping may offer a higher level of control over financial data and easier communication.
Choose the option that gives you value for your investment.
Look for certified professionals with experience in your industry who offer transparent pricing structures. I also recommend that you seek recommendations from other small business owners and read online reviews to gain insight into the provider’s reputation and quality of service.
| Best For | Prices Start From | Some Main Features | |
|---|---|---|---|
Seed Package | Sole traders, start ups, one man bands, lone wolves, and people who prefer to go (hans) solo | $99 weekly (Ex GST) |
No payroll included with this package. |
Grower Package | Growing businesses, companies, partners, and those who wish there were at least 9 days in each week. | $160
weekly (Ex GST) |
|
Bloomer Package | Established businesses, expanding entrepreneurs, mini moguls and people preparing for world domination | $210
weekly (Ex GST) |
|
Can My Small Business Afford Virtual Bookkeeping Services?
I understand that right now, it looks like you can’t afford any additional business expenses. However, just to challenge that idea – do you think you can afford the penalties and fines that come with making costly financial mistakes and errors?
Conduct a thorough cost-benefit analysis to determine if virtual bookkeeping services are a feasible option. Compare the expenses associated with virtual bookkeeping to in-house or traditional outsourcing options, factoring in potential savings from improved financial management and streamlined processes.
Keep in mind that virtual bookkeeping services offer a cost-effective solution. After paying a flat monthly fee or hourly rate, you don’t have to think about managing your books ever again. You’ll also gain access to services that scale as your business evolves, as well.
Don’t Manage Your Books Alone
Handling the money is not exactly everyone’s favourite job. If this sounds like you, attempting to handle your finances alone can result in unnecessary stress and potential costly mistakes.
It’s high time that you evaluate the positive ROI that you’ll get from bookkeeping services for your small business. Whether you choose in-house, outsourced, or virtual bookkeeping services, remember that investing in proper financial management is essential for the long-term success and stability of your business. Schedule a strategy call with The Bookkeeping Studio today to discuss your options.
Hey, my name’s Bindi Gethen! I’m the founder of The Bookkeeping Studio in Australia. With over 15 years of experience in the industry, I have a deep understanding of the challenges that small and medium-sized business owners face when it comes to managing their finances.
I am passionate about empowering my clients with the financial information they need to succeed. My team and I pride ourselves on our commitment to exceptional value, accuracy, and confidentiality. Our virtual bookkeeping services include payroll, budgets, and management reporting, among others.
Not to toot our own horn, but we can assure you that you won’t find a bookkeeping partner like us anywhere else in the Southern Highlands.
