If you are a small businessman, you already know how much stress is managing your financial books. But Knowing if your accounting costs are on track is even more stressful.
So the question is, How much does it cost to hire accounting outsourcing companies in India for a small business? The answer is not as easy as it seems.
What Are Accounting Costs?
The cost of accounting varies according to the size of the company. Before moving forward, let’s discuss the costs of small business accounting.
Accounting Projected Costs
A business’s projected cost is accounting charges. These charges do not give you any profit but are necessary for the functionality of your business; renting an office and employees’ salaries are overhead costs.
Accounting will not let you earn more money, but you must maintain the financial records of your company’s transactions.
As you are a small business owner, it would be better if you keep your projected costs low; the reason is- The smaller the cost, the more profit you will earn. It does not mean you have to compromise with everything; just look for affordable solutions that suit all your business requirements.
Accounting Fees For A Small Business
The accounting cost of business generally depends upon how much you use accounting and bookkeeping services for your businesses. Your accounting expert will help you maintain and correct your company’s financial records, file taxes, generate invoices, process receipts etc.
The median cost of accounting for a small business largely depends upon the type of accounting professional you want to hire.
Such as hiring a bookkeeper is less expensive; they will help you record your daily financial transactions, prepare reports, and do data entry. But hiring an accountant and CAs is a little expensive as they perform more advanced tasks like filing taxes, giving financial advice, analyzing business costs etc.
The bookkeeper and accountant can be hired on an hourly basis or full-time basis. The hiring fees depend upon the type of work you want them to do. The average cost will rise if you assign more complex tasks to them.
You can cut down some of your accounting costs by handling some of your financial tasks yourself. Like you can take care of transactions and process payroll online. You just have to enter the amount you want to calculate in the software; it automatically computes the total.
Some accountants use software for payroll processing which is cheaper than traditional accounting. There are various types of software out there, with loaded features or fewer features; you can choose it according to your budget and business needs. The more advanced features it has, the more it costs.
Structure of Small Business Accountant Fees
The pricing structure of hiring an accountant for a small business is divided into three parts:
- Rate Per Hour – Your accountant costs your business per hour they spend working on any agreed accounting tasks.
- Per Project Basis – Ahead of completing many tasks, your accountant will evaluate how long it takes to complete and the total price, providing you with a flat fee before they begin.
- Steady Rate – A steady rate means you hire the accountant yearly and pay the accountant monthly.
Lastly, as a business owner, you don’t have much time to spend on accounting tasks in your workday but to save a few pennies, you can perform some basic accounting tasks using a simple software solution. And for tough tasks, you can hire an accountant virtual employee to help you grow your business. But finding the right balance between money and time spent on your finances will help you keep track of your accounting.