Bookkeeping is an important aspect for any business to maintain a record of their transactions. Bookkeeping and accounting enable a big or small business to get a look at the real financial position. Bookkeeping services Etobicoke provides complete accounting to small businesses for recording and maintaining their accounts. If any company wants to understand their financial situation, including profit, loss, and revenues – bookkeeping is mandatory.
But small businesses can often get skeptical due to the cost of bookkeeping. They avoid hiring a bookkeeper in Etobicoke due to the high costs that might be involved. But such is not the case. The cost of small business bookkeeping Etobicoke depends upon a lot of factors. Every business has a different size and scale, depending on which the cost is calculated.
In this article, we will look at the cost of bookkeeping services Etobicoke for small businesses. We will highlight the factors that determine the cost, the work that a bookkeeper does, and the cost of different types of bookkeeping services for small businesses. Let’s have a look at them in detail.
What bookkeepers do for small businesses
Bookkeepers are accounting professionals who maintain your finances and transactions. They help small businesses with maintaining business transactions and create a complete record of everything. A professional bookkeeper in Etobicoke provides the following services to small businesses –
- Recording day-to-day transactions
- Entering data into respective ledger accounts
- Tracking every financial transaction
- Making reports on the transactions
- Creating and sending customer invoices
- Preparing documents for audit and compliance
- Ensuring timely payment of taxes
Bookkeepers are highly trained professionals. They need to be precise and accurate. They are crucial to understanding the financial situation of the company at any given point in time. Bookkeepers have the proper accounting knowledge as well – helping you with the taxation procedures and meeting the regulatory standards.
Factors that determine the cost of bookkeeping services
When you are looking for a reliable professional in small business bookkeeping Etobicoke, there are several factors to consider that will help you determine the cost. These factors include –
1. Company size
The size of the company also determines the size and volume of transactions. If your company size is big, there are high chances that you have to pay more for bookkeeping services. It will require more time to track and manage transactions.
2. Number of transactions
Another factor that a company providing bookkeeping services Etobicoke will consider is the number of transactions. The higher the number of transactions, the more it will cost because the bookkeeper has to allot more time to your company.
3. Financial activities
The number of financial activities also determines the cost of small business bookkeeping Etobicoke. The professional has to deal with invoices, credit card & debit cards, payroll, expenditure and income accounts. An increasing number of financial activities would lead to a high cost of bookkeeping.
Apart from these, factors like the frequency of bookkeeping and policies & procedures will also determine the cost of bookkeeping services for small business.
Cost of bookkeeping services for small businesses
There are two types of bookkeepers in Etobicoke for small businesses – Part-Time and Full Time. The part-time bookkeepers are hired during the high times or the tax season. They perform the basic bookkeeping activities and charge on a per-hour basis. They generally cost around $20 – $35 per hour. They are the perfect fit for businesses that don’t have a high volume of transactions and only require bookkeeping services Etobicoke, once a month.
On the other hand, full-time small business bookkeeping Etobicoke, costs more than part-time. They are involved in the day-to-day financial operations of the business. They keep the books up-to-date and build a clear foundation of the business, presenting a true financial position of the business. They charge on a per-project basis. The annual cost can come around $30,000 – $50,000, including all the fees and charges.
You need to carefully look at your business and determine which type of bookkeepers best suit your requirements. Small businesses need to hire professionals so that they can get a real assessment of their financial situation.