Startup entrepreneurs have a lot on their hands. They have to manage every aspect of every department of their fledgling business. The lack of staff means support for their efforts is at a minimum. Adding those extra hands will make a dent in their limited finances. Amid this juggling act, it’s easy to lose sight of those financial numbers. Outsourcing bookkeeping can be a lifesaver for such busy entrepreneurs, especially if they go through a bookkeeping price list beforehand.
Why Do You Need Bookkeeping Services in the First Place?
Every dollar matters when bootstrapping, so entrepreneurs need bookkeepers who are reliable and affordable. Hiring one just for this purpose may seem like a good idea on paper, but it comes with its problems. Most notable of those are costs associated with the hiring and employee payment processes. Should they underperform, they’ll have to go, incurring a loss of those costs and from any wrongful calculations during their employment. Moreover, it adds a needless burden on an already overburdened entrepreneur. Outsourcing the company’s bookkeeping activity to a capable agency is, therefore, the optimal option.
After deciding to outsource, questions about costs incurred due to it are bound to prop up in an entrepreneur’s mind. If you are such a person, you’re bound to find yourself browsing through the pricing structures of various bookkeeping agencies to find a suitable one. When you do, hourly and flat-rate payment methods will show up as the most common ones.
Going Flat-Out For Flat-Rate:
The flat-rate payment model is gaining increasing popularity among bookkeepers and their employers alike. The many benefits of the flat-rate model for either party are the driving force behind this rise. Chances are, more than a few of those benefits will apply to you. Therefore, it’s best to opt for such a model if you encounter it in the bookkeeping price list you’re going through.
There’s no mistaking the fact that the gig economy is taking hold everywhere. Freelancers of all shades can be found hunched over their laptops, typing away furiously to complete their respective projects. That includes bookkeeping. And you’re likely to find a freelancer that charges hourly but isn’t qualified for it. Such professionals tend to stick to jobs that offer good prospects, both in salary and career growth terms. A flat-rate payment gives them that financial guarantee. Hence, you’re more likely to find a qualified professional for your bookkeeping purposes by choosing a flat rate.
Lack of Ambiguity:
Hourly rates come with multiple variations depending on location, time of day, change in the number of tasks, etc. Such variations create confusion when calculating the final amount to be paid at the time of payment. These confusions will add needless delays and stress as well if disputes arise. A flat-rate payment agreement eliminates those types of ambiguities. The contract will list out the tasks expected and the fixed amount that is payable to them. There is no need for the additional step of calculating the final price to be paid either, as confirmed beforehand.
Hourly payment figures may initially strike as the cheaper option, but they quickly add up as time progresses. You could end up with a higher-than-expected bill as a result. Not to forget the losses that could occur due to the above-mentioned ambiguities-induced delays.
With flat rates, your bill won’t go up as the hour’s pass. There won’t be any unexpected variations in the pricing structure either. When combined, all of these factors will leave with savings on the overall bookkeeping costs. Being a bootstrapping, small-time entrepreneur is not an easy task for anyone. The flow of the limited finances will always be on your mind, requiring a bookkeeper to take care of it for you. Getting one via a flat-rate option in their bookkeeping price list will keep your books and, by extension, your company well rounded.