How a Cheap Bookkeeping Service Can Actually Cost More Money
There's an old business adage that still rings true today: "fast, cheap, quality--- pick two."
Meaning, if you're looking for cheap services, you'll likely have to sacrifice either quality or timeliness. And that's doubly true with bookkeeping services.
Many small business owners make the mistake of thinking they're getting a deal by hiring a $15-$20/hr. bookkeeping service. The problem is, they may be paying for poor quality without knowing it. Or if the quality is good and the books are accurate, they're not delivered in a timely way.
If you're looking for cheap services, there's no shortage of bookkeepers who charge a low hourly rate. But are they really qualified to do the job?
They may be charging a lower rate because they haven't taken the time or paid the fees to enroll in continuing professional education courses.
Others may not have taken the time or paid the dues to become an expert in a particular software.
And, more often than not, they won't have a background in accounting and so can't apply key principles and concepts to their work to ensure its accuracy.
So when a qualified professional reviews the work, many business owners find their books are sloppy at best and completely inaccurate at worst.
Which means they'll have to pay a premium to untangle the mess and it can take weeks if not months to clean up. Not only are they spending money to correct the problem, but they have also, in essence, paid the cheaper bookkeeper to make the mess in the first place!
And if basic activities like cash reconciliations haven't been performed correctly (or at all!) that could mean big bucks in overdraft fees.
Finally, many times, businesses end up paying a CPA just to clean up the books and get them ready to prepare the tax returns. And that can be a very expensive proposition.
The other hazard you run when hiring a bookkeeper at a cheap hourly rate is that you could end up paying for their inexperience.
For example, it may take a cheaper, less experienced bookkeeper twice the amount of time to reconcile accounts as a qualified one so in the end, you're not actually getting a deal. And there's no guarantee the books will be accurate when all is said and done.
And even if the cheaper bookkeeper knows what he or she is doing and the books are accurate, they may take longer to close them out for you (again: fast, cheap or quick--- pick two) which means any reports run in the interim are inaccurate.
Unfortunately, we can't count the number of times clients have called us in a panic because a cheap, hourly bookkeeper they hired was nothing more than a glorified data entry clerk and the books are in complete disarray as a result.
We've been performing bookkeeping clean-up services for clients for over 15 years. Whether you've got a shoebox full of receipts or an inexperienced bookkeeper has left you with a big mess on your hands, we can help. We'd love to talk!
Meaning, if you're looking for cheap services, you'll likely have to sacrifice either quality or timeliness. And that's doubly true with bookkeeping services.
Many small business owners make the mistake of thinking they're getting a deal by hiring a $15-$20/hr. bookkeeping service. The problem is, they may be paying for poor quality without knowing it. Or if the quality is good and the books are accurate, they're not delivered in a timely way.
The Price of Poor Quality
If you're looking for cheap services, there's no shortage of bookkeepers who charge a low hourly rate. But are they really qualified to do the job?
They may be charging a lower rate because they haven't taken the time or paid the fees to enroll in continuing professional education courses.
Others may not have taken the time or paid the dues to become an expert in a particular software.
And, more often than not, they won't have a background in accounting and so can't apply key principles and concepts to their work to ensure its accuracy.
So when a qualified professional reviews the work, many business owners find their books are sloppy at best and completely inaccurate at worst.
Which means they'll have to pay a premium to untangle the mess and it can take weeks if not months to clean up. Not only are they spending money to correct the problem, but they have also, in essence, paid the cheaper bookkeeper to make the mess in the first place!
And if basic activities like cash reconciliations haven't been performed correctly (or at all!) that could mean big bucks in overdraft fees.
Finally, many times, businesses end up paying a CPA just to clean up the books and get them ready to prepare the tax returns. And that can be a very expensive proposition.
Time Is Money
The other hazard you run when hiring a bookkeeper at a cheap hourly rate is that you could end up paying for their inexperience.
For example, it may take a cheaper, less experienced bookkeeper twice the amount of time to reconcile accounts as a qualified one so in the end, you're not actually getting a deal. And there's no guarantee the books will be accurate when all is said and done.
And even if the cheaper bookkeeper knows what he or she is doing and the books are accurate, they may take longer to close them out for you (again: fast, cheap or quick--- pick two) which means any reports run in the interim are inaccurate.
Quality is Peace of Mind
Unfortunately, we can't count the number of times clients have called us in a panic because a cheap, hourly bookkeeper they hired was nothing more than a glorified data entry clerk and the books are in complete disarray as a result.
We've been performing bookkeeping clean-up services for clients for over 15 years. Whether you've got a shoebox full of receipts or an inexperienced bookkeeper has left you with a big mess on your hands, we can help. We'd love to talk!