What are the Financial Advantages of Hiring a Bookkeeper?
Have you ever contemplated hiring someone else to do your bookkeeping? As you considered it, one of the questions that you likely asked yourself was “What are the financial advantages of hiring a bookkeeper?” Here are a few quick answers:
1. You can make more money working “on” your business than “in” your business (aka growing revenues as opposed to doing Admin work).
2. Paying a tax preparer to correct mistakes at the end of the year can be much more expensive than doing it right the first time.
3. Hiring a bookkeeper is a tax write off. Doing your own books is not.
On average, here is the math:
$150/hour is what you make on your business, $70/hour is what you pay a bookkeeper
6 hours/month is what it takes you to do your bookkeeping; 2 hours/month is what it takes a bookkeeper to do your books
$150/hour x 6 hours = $900/month is the cost to do your own bookkeeping; $70/hour x 2 hours = $140/month is the cost for a bookkeeper to maintain your books
$900/month x 12 months = $10,800 is the Annual cost to do your own bookkeeping; $140/month x 12 months = $1,680 is the Annual cost for a bookkeeper to do it for you
The cost to hire a tax preparer is, on the average, $350 but can be $1,000 OR MORE if the ledgers need to be revised to clarify income and expenses!
Finally, the $1,680 would be a tax write-off at the end of the year!
The $10,800 of lost income, because you did the job yourself, is not a tax write-off.
Give us a call to discuss real numbers and get clear on what is best for your business.
We would love to help you!