The Cost of Hiring an Accountant for a Small Business

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The Cost of Hiring An Accountant for a Small
Business
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INTRODUCTION

• It may be possible to manage some accounting
  tasks by yourself or through some accounting
  software, but hiring an accountant can be a
  better alternative.
• Common reasons to hire accountants from India
  include managing business taxes and financial
  audits.
• Besides being complex, these tasks are
  time-consuming, and any error can prove to be a
  costly affair.
• Choosing the services of an accountant for your
  new firm can be the best because you would have a
  certified professional who will have the
  experience to work on these processes.

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• An accountant will not only assist you with the
  physical accounting work but also offer the right
  financial advice to run your business.
• Owners of about 50 of SMEs or small business
  enterprises spend over 5,000 each year on
  expenses related to accounting.
• It is quite difficult to calculate the exact cost
  of hiring an accountant for a small business
  because there can be many factors involved, such
  as the type of project you are outsourcing, the
  fees for specific tasks, the frequency of
  accounting requirements, and so on.
• Some of the factors that can influence your
  decision to hire an accountant for a small
  business will be discussed in the following
  slides.

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IN-HOUSE Vs OUTSOURCING

• It is up to you to decide whether you want to
  hire an in-house accountant or outsource the
  recordkeeping tasks. This decision will
  definitely impact your accounting costs.
• Based on your business requirements, you can hire
  an in-house accountant on part-time as well as
  full-time basis. Hiring in-house is an expensive
  option as you would be adding the accountant to
  your companys payroll and various employee
  benefits.
• Outsourcing, on the other hand, would mean that
  the accountant would be a freelancer who will
  work on your bookkeeping tasks whenever required.
  They will usually work from their own home or
  office and communicate with you through online
  messaging platforms like Skype and WhatsApp. You
  wont need to put them on your payroll.

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PRICING STRUCTURE

• The cost of hiring an outsourced accountant would
  depend on his pricing structure.
• According to the National Federation of
  Independent Business, the fee structures used by
  most accountants are hourly, proposal-based, and
  fixed-fee.
• Finalizing an hourly pricing structure would mean
  that you will have to pay per hour for the
  services offered. The hourly rate can be anything
  between 150 and 500.
• In a proposal-based fee structure, the accountant
  will give you an estimate of the time he would
  invest in a particular project in advance.
• In case of a fixed-fee structure, a monthly fee
  will need to be paid for ongoing accounting
  projects.

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SKILLS

• Rates or fees for accountants vary depending on
  their skills and experience. Rates can also
  differ based on the complexity of a project. Some
  thorough research can help you find an accountant
  who would fit your business needs and budget.
• Note that there will be accountants who charge
  much higher than the normal rates. This may be
  because they have the necessary skills to
  complete the tasks in lesser time and more
  effectively as compared to the accountants who
  charge lesser. Even if you hire accountants from
  India with higher rates, you will eventually save
  a lot of money by paying them on an hourly basis.
  

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TASKS

• The kind of projects outsourced to an accountant
  also determines the cost of hiring.
• This implies that you will have to pay more if
  you get more work done by an accountant. Also,
  note that complex and time-consuming work is
  generally more expensive.
• You can hire a bookkeeper instead of an
  accountant, to manage smaller tasks like
  balancing accounts, for about 40 per hour.
  Accountants, on the other hand, charge a few
  hundreds of dollars per hour for such simple
  tasks.
• You can also use some accounting software to
  eliminate the hiring cost. You will just need to
  maintain your records accurately before handing
  them over to your accountant for the final
  touch.

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SUMMARY

• As the owner of a small business, you can work on
  many tasks on your own or by using easy-to-use
  accounting software. However, when you intend to
  scale up your business, you can hire accountants
  from India or elsewhere as per your budget.
• There is no doubt that an accountant can relieve
  you from the pressure of handling accounting and
  bookkeeping yourself, but dealing with some of
  these responsibilities on your own can also
  reduce your hiring cost.
• You can consider the factors and points mentioned
  in the previous slides to form a good decision
  regarding the recruitment of accountants. Compare
  rates and do the necessary research before hiring
  an accountant who can assist in managing and
  growing small businesses like yours.

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YOU CAN REACH US
YOU CAN REACH US

• VIRTUAL EMPLOYEE
• www.virtualemployee.com
• Breakwater Marketplace, 91 Camden Street,
• Suit 312, Rockland, ME 04841, USA
• (1) 877-697-8006
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