When planning to avail accounting service, the common question that people have in their mind is “What will be the cost of accounting services?”, or “How the charges will be charged by the firm, i.e., on the hourly or daily basis for bookkeeping service?” etc.
No matter how the question is framed, it all comes down to one thing and that is the “cost of accounting service.” This cost depends on several factors. Learning about these factors will help you do an efficient comparison between different firms and make an effective decision.
What are the different types of bookkeeping service?
You need to understand the types of bookkeeping services that are provided by companies to find the right one.
Fixed Fee Services
In a fixed price model, you agree on a pre-specified monthly payment with a bookkeeping services firm. The fees of the accountant fees may vary depending on the requirements of the company. The advantage is that one is not charged for every phone call or email that one makes to the accountant. You can specify bookkeeping fees to be charged to you every month.
Hourly model is the model that goes with the principle “pay only for what is used”. The good side of this method is that it can charge you less when you have less work. The downside is that an accountant can spend several hours for a work that could otherwise have been done in a few minutes. So, when the amount for such big duration is claimed, you have no choice but to pay to him.
Some companies offer basic support to entrepreneurs who have just started their work. Learn if the company can scale itself with the increase in your workload. Go for only advanced support companies once your work begins to expand.
How good is a bookkeeping service that charges on an hourly rate?
In this method of charging the labor cost, a customer is charged for the number of hours an employee has worked on their project to complete it in an expected way. But, the fact is that billing at an hourly rate is not impactful due to the difference in the scope and complexity of the project.
A bookkeeping task that is simple would require mediocre level expertise and solutions as compared to a complex one that would need working with incredibly complicated financial management and reporting tools by highly skilled professionals.
Charging them for paying hourly rates would not always match to the knowledge level needed to deliver a service. The right approach would be to determine an approximate time period required to accomplish each accounting task and fix monthly or fixed raamatupidamisteenuse hind on the basis of the complexity of the task. This method is likely to create an impartial price.
The cost of an accounting service will always be a major factor in arriving at a right decision. Your budget should allow paying the cost and getting the right return on the expense. So, it is important to address cost considerations to solve pricing concerns effectively.
Grow is a leading accounting company that offers e-invoices invoice address service to its customers. Our 24 hours accounting program automatically imports e-invoice and sends it out to targeted customers at a reasonable raamatupidamisteenuse hind.