Often, small business owners can successfully manage their own books and record keeping without the need for a dedicated employee to handle the financial aspects of the company. For example, Joe owns a small family restaurant that employs eight people and earns a meager profit. He has found it to be less expensive to keep his own books with the assistance a simple accounting program rather than hire a full time or even a part time employee to handle that aspect of the business.
What happens, however, when Joe’s small family business starts to grow? Growth is good, right? Let’s say he opens three new restaurants in the surrounding areas due to increased business. Now he has twenty four employees to manage and three new streams of revenue to keep track of. While his profits rise, so do his expenses and paperwork. The financial side of the business becomes more and more difficult to manage, as he now needs to focus his attention on operating the new stores. Joe is now faced with a difficult choice.
Should he hire a full-time employee to manage his financial portfolio? Or is there a more cost-effective option avaliable to him?
A bookkeeper’s general salary varies from region to region, but we are going to be baseing our bookkeeper’s cost on the average bookkeeping salary here in Northern Virginia. Typically, a full-time bookkeeper for a small to mid-sized company makes between $40 and $65k salaray per year. When one tacks on the cost of health insurance and other employee benefits, the net costs can go up considerably. Bookkeeping is not an entry level profession, and most professional bookkeepers have extensive training and higher education, making their skills invaluable. Full-charge bookkeepers generally have a somewhat higher salary range and a fully certified accountant can require a hiring salary in the $100k range.
This is where Yield Bookeeping can offer Joe that cost-effective option. We can offer Joe outsourced bookkeeping at an hourly rate that is easily affordable. Because bookkeeping is a cyclical task, his company may only require four to six hours of actual work per month. Perhaps less! Instead of paying for a full-time employee that could cost him thousands per month, he would only be paying for actual time spent managing his account. Yield could also get Joe set up on Quickbooks Online at his office, further streamlining the process. All of his transactions and financial data would be uploaded securely into Quickbooks where Yield can easily access and manage his workload, more or less paperlessly! Additionally, Yield could process Joe’s company payroll through Quickbooks as well, substantially reducing Joe’s financial workload and allowing him to focus on his sales and productivity.
This is what we do here at Yield. We provide bookkeeping and accounting solutions to small businesses just like Joe’s. Our goal is to help start ups and small companies grow into successful and profitable ventures. We can give your company the financial leverage to grow as well!