Did you know……bookkeeping services are a tax-deductible expense?

How monthly bookkeeping fees are determined

  1. Number of bank accounts associated with business

  2. Number of credit cards associated with business

  3. Number of loans associated with business

  4. Number of transactions within each account that need to be categorized

  5. Payroll - who will be running payroll, payroll provider, number of employees, how often payroll is run

  6. Accounts payable - number of bills paid monthly

  7. Accounts receivable - number of invoices monthly

  8. Sales Tax - number of filings per year

  9. 1099 filing - number of subcontractors

Did You Know…..

Charging by the hour for bookkeeping services can actually cause business owners to spend more money each month.

  1. Unpredictable Costs: Hourly rates can lead to fluctuating monthly expenses, making it difficult for business owners to budget accurately. A higher-than-expected number of hours can significantly increase costs.

  2. Complexity of Tasks: As business transactions become more complex, the time required to manage them increases. This can lead to higher monthly costs if the bookkeeper spends more hours on these tasks.

  3. Lack of Fixed Budgeting: Hourly rates make it difficult for business owners to plan and control their bookkeeping budget. Unexpected issues or additional work can result in higher bills than anticipated.

  4. Increased Communication Time: Time spent on meetings, phone calls, and email correspondence is often billed hourly. Frequent or lengthy communications can add up, increasing overall costs.

  5. Seasonal Variations: During busy periods, such as year-end closing or tax season, the number of hours required for bookkeeping increases, leading to higher costs in those months.

  6. Learning Curve: When new bookkeepers start, they may take longer to understand the business's specific needs and systems. This learning period can result in more billable hours initially.

  7. Unforeseen Issues: Unexpected financial issues or discrepancies can arise, requiring additional time to resolve. This can lead to more hours billed and higher monthly costs.