• Steph McGuirt

Is Hiring a Bookkeeper Expensive?

How much is good bookkeeping worth to you?


You should really want to know the answer. Because it helps to determine what type of bookkeeper is best for you and the level of value they’re qualified to provide.


I’m in Colorado. According to salary.com, the average salary for a bookkeeper in Denver is $47,481 (+ benefits, vacation, etc).


In Los Angeles, California, close to where Deb lives, it’s $53,100 (+ benefits, vacation, etc).


Our ongoing bookkeeping rates start at $390 per month.


$390 x 12 = $4,680 per year. (Damn. We should raise our rates.)


The reason we’re spotlighting this difference in pay is because many people think $390 per month for bookkeeping is completely outrageous.


But you have to look at your business as a business, and compare outsourced costs to what people are actually getting paid by doing similar work where they live.


It’s fair. Hence the term you may have heard, Fair Market Value (FMV)—words known in the sale of property, but that apply to many transactions we make. From groceries to hiring.


Knowing the FMV helps you understand what you could save by outsourcing or what you could spend by hiring in-house.


So, let’s say you hire Pinnacle Flow Bookkeeping for ongoing bookkeeping support and guidance on running a successful, sustainable business...


You’ll see the difference between an employee and us as employees is $95,901 (+ benefits, vacation, etc).


(Keep in mind that there’s two of us available full-time and year-round, so we’re looking at two salaries in two states here.)


Compare that number to a rate of $4,680 per year… and it’s an easy decision.


It’s worth the small shift in perspective to see that the cost of outsourcing is worth it if you can afford it.



There’s also the glaring distinction between a data entry clerk and a bookkeeper who’s also a business advisor. (We’re the latter.)


You’ve gotta know if you just want someone to do “busy work”—entering data and telling you the data’s been entered.


Or, if you want someone to do the big-picture work—enter the data, analyze it, tell you what it means, and what you could do with it to save money and meet your goals.


Just some essential things to know when you’re ready to hire.


GO FORTH!



Ready to chat with a bookkeeper, but not sure what to ask?


Download our free Discovery Call Workbook today.




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