Small business owners who do their own accounting may pat themselves on the back for saving money, but sometimes they wonder if it’s worth it.
How much time spent on accounting each month is too much before it makes more sense to outsource it to professionals?
CSI Accounting & Payroll has done monthly accounting for small businesses for over 50 years, and we often get asked the following questions by prospective clients:
On average, small businesses that suit our client base usually take between 10-15 hours of bookkeeping each month. If they also handle their billing in-house, it can take up to 25 hours per month.
This doesn’t include any additional time that it would take to go back and fix errors, and it also doesn’t include the time it takes to handle your taxes.
We find that people with bookkeeping experience are more efficient, generally taking about 30 percent less time than someone who is inexperienced.
As a business owner, your time is worth a lot.
You still want to maintain personal time outside of work, which small business owners tend not to prioritize. You also have a lot of value that you can add to your business if you spend your time in the right areas instead of accounting.
Do you ever think about how much you get paid for each hour of work?
In many instances, three to five hours of accounting per month is the point when you may want to outsource, provided your business is ready to work with an accountant. But when do you need to?
Well, if you factor in your hourly pay and the number of hours that accounting takes you, is the result reasonable? It’s time to outsource your accounting when this formula is true:
The value per hour of your time * The number of hours spent on accounting > The cost of an accounting service
If you’re using CSI in the equation above, plug in our monthly accounting fee. It varies based on several factors, but it ranges from $600 to $1,000+ per month and averages $750 per month. Find your custom estimate with our calculator by clicking the image below!
Now that you know how long accounting takes per month, what your time is worth, and how much time is too much time to spend on your accounting, are you ready to check out monthly accounting services?
If so, please consider CSI Accounting & Payroll! To see if we can be a good fit for your business, click the button below for a free consultation:
Not ready to talk? That’s okay! First, learn more about what it’s like to work with CSI by clicking the image below: