Many business owners, from small to large, are used to relying on in-house bookkeeping. While having someone physically in an office was required in years past, time and technology have changed to a point where that is no longer a requirement. This shift opens the door for business owners all across the country to outsource some menial work to not only save time so that their in-house employees may work on higher-level items, but also save them money.
Financial reporting for one's business will differ based on the specific needs, industry considerations, as well as other factors. Generally, in-house bookkeepers have other administrative responsibilities, such as customer service, human resources, or other various items. These individuals can provide you with financial reporting but you have to make sure that they are properly trained, and have the right skill set to provide you with the information needed.
Outsourcing your bookkeeping and accounting can help alleviate late, inaccurate, or meaningless financial reporting. When you decide to outsource, you can pick and choose exactly what you need for your business.
Working with a virtual accounting service can make your finance employees more effective by establishing clear and concise procedures. They can report to an outside accountant who has oversight of not only the bookkeeping but of the financial reporting as well.
For many small and medium businesses, cost is a big determining factor when choosing a bookkeeping and accounting service. According to the Bureau of Labor and Statistics (BLS) Occupational Outlook Handbook, a full-time in-house bookkeeper's median salary is $41,230 Annually. Furthermore, the median annual salary for a full-time Staff Account is $71,550. Together, two employees cost over $100,000 which doesn’t take into account overhead costs.
Overhead costs can add an additional 20% on top of an employee’s base salary and consist of:
With outsourced accounting/bookkeeping, your business pays zero overhead because it is not responsible for providing any of the above items to their virtual accountants/bookkeepers. This reduction in overhead results in massive savings for your business. Even if it cost $2,000 per month in outsourced full-time bookkeeping services, it would cost at least $3,500 for an in-house individual to do the same job, plus all of the overhead costs associated.
Choosing whether to outsource your bookkeeping and accounting can depend on multiple factors and may not be based solely on cost savings. In-house services might be good for some companies, but many companies find that the reduced labor costs allow them to invest and grow their business that much more.
Unlike most outsourced companies, Millennial Financial is U.S. based and offers a dedicated team of a bookkeeper, staff accountant and accounting manager, working out of our service center in Naperville, Illinois, who provide the expertise you need to run your business. We have strict guidelines in place to ensure that there is no risk of fraud and our staff goes through continual training so they are up-to-date on accounting best practices.
Millennial Financial delivers our clients actionable financials that they can count on. We are experts in bookkeeping, and accounting services and provide businesses timely and accurate financial statements from a team you can trust.
While we do much more than just the essentials, the core of our service is solid, reliable bookkeeping and accounting services that keep your business on track. We help companies take control of their finances and deliver actionable financial intelligence designed to help grow your business. Put your numbers to work!
