As a small business owner looking to outsource accounting in today’s market, you can expect to pay anywhere from $500 per month to around $5,000. It all depends on the details of your business and the tasks you need an accountant to accomplish for you.
What Affects the Price to Outsource Accounting?
Since the cost can range so much, there are lots of variables that can affect the price to outsource accounting. Among other things, some of the factors that might alter the cost of outsourced accounting can include:
Your Business Revenue: The more money your business is bringing in, the more you will have to keep organized and utilize the help of an accountant(s). It will take more work on the accounting side of things if your business has a higher revenue, so this will affect the cost to outsource.
The Industry: Some industries are harder to navigate financially than others. If your small business requires more complicated accounting duties than most, this can raise the cost of outsourcing accounting.
Desired Services: The price of outsourced accounting can also change depending on the services you need the accountant(s) to accomplish for your business. A few simpler jobs may cost less, but the price will increase with added responsibilities or more difficult tasks.
Hourly Pay or Fixed Monthly Price?
One important thing to consider when finding an outsourced accounting partner is how they prefer to be paid for their services. There are pros and cons to paying them with an hourly rate or with a fixed monthly fee.
Hourly: Paying an accountant hourly is a better method if you only bring them in for certain tasks on a less regular basis. It gives you a simpler way to pay them for specific jobs. However, it can encourage certain types of people to do their job less efficiently since they are being paid for every hour they spend working. Paying via an hourly rate can be a great choice as long as you know your partner well and are confident that they won’t take advantage of it.
Monthly: With a fixed monthly fee, you know exactly what you’re paying and when you’re paying for it. It also encourages your accounting partner to get their job done as quickly and efficiently as possible. Since you are paying a set amount every month, this method works best for part-time or full-time outsourced accountants rather than single-project jobs.
Benefits of Outsourcing:
Not only does outsourcing accounting allow more customizable services for your business, it can also save time and money by having a designated person or group of people to handle your finances. In addition, it provides an opportunity for you to discuss your business decisions with a professional to make sure you’re financially headed in the right direction. It also allows more flexibility on your end, giving you the option to hire an accountant on a part time, full time, or project-only basis.
Start Outsourcing Your Business’s Accounting!
District Advisory works hard to provide high-quality outsourced accounting services for businesses. Contact us today to schedule a free consultation and discuss your business’s future in outsourcing accounting.
