Freelance Bookkeeper – Is He Worth the Cost?
Posted on December 4, 2011 | No Comments
Amitaabh Saboo asked:
Businesses who employ freelance bookkeepers think that they are saving from staff or employee costs. At least with a freelance bookkeeper, they are not obliged to provide employee benefits. The bookkeeper will not also be entitled to any incentive or yearly employee program. What the company can get from the bookkeeper is simply the task that that they were hired for. Plus, usually the freelance bookkeeper costs less since the service fee can be arranged by the freelancer. If the business asks for a bargain for instance, they can do so. In general, getting a freelance bookkeeper seems to be the most cost-effective solution to bookkeeping service. At least that’s what most businesses think. But in reality, there are other things to consider before a business can get to such conclusion.
Importance of Financial Data
A business generally operates for profit. The business owner wants to see if he is earning or not. Other than this general concern, he also wants to see bits and pieces of financial information that would affect his decisions on his business operation. He needs information such as accounts receivable turnover, ratio or payable and sales, payable to receivables, assets against liabilities, and so on and so forth. He then needs to see accurate and reliable financial data. Whatever is presented by the freelance bookkeeper, it will influence his decision. And it’s not just about the content. It should also be output in real time. This means that the information should be available when it is needed in a particular time period.
It is then important that the freelance bookkeeper does not only know accounting procedures but also knows how to create the data accurately, reliably, and within real time. This goes to say that the freelance bookkeeper should give quality service. Otherwise the price that is paid will go to nothing if the data that he keeps in accounting records is not accurate.
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Businesses who employ freelance bookkeepers think that they are saving from staff or employee costs. At least with a freelance bookkeeper, they are not obliged to provide employee benefits. The bookkeeper will not also be entitled to any incentive or yearly employee program. What the company can get from the bookkeeper is simply the task that that they were hired for. Plus, usually the freelance bookkeeper costs less since the service fee can be arranged by the freelancer. If the business asks for a bargain for instance, they can do so. In general, getting a freelance bookkeeper seems to be the most cost-effective solution to bookkeeping service. At least that’s what most businesses think. But in reality, there are other things to consider before a business can get to such conclusion.
Importance of Financial Data
A business generally operates for profit. The business owner wants to see if he is earning or not. Other than this general concern, he also wants to see bits and pieces of financial information that would affect his decisions on his business operation. He needs information such as accounts receivable turnover, ratio or payable and sales, payable to receivables, assets against liabilities, and so on and so forth. He then needs to see accurate and reliable financial data. Whatever is presented by the freelance bookkeeper, it will influence his decision. And it’s not just about the content. It should also be output in real time. This means that the information should be available when it is needed in a particular time period.
It is then important that the freelance bookkeeper does not only know accounting procedures but also knows how to create the data accurately, reliably, and within real time. This goes to say that the freelance bookkeeper should give quality service. Otherwise the price that is paid will go to nothing if the data that he keeps in accounting records is not accurate.