Why this is a difficult question to get an actual answer?
How much does an accounting cost in the UK? – It depends on the size of the business and experience? The same outsourcing cost depends on the size of the practice and your client base. Many providers charge on an hourly basis and fixed fees.
Today the requirement for accounting and bookkeeping outsourcing services is massive. Many accountancy practices avail accounting and bookkeeping services because of deep knowledge, higher service level and delivery by an outsourcing provider and their dedicated team members. There are a variety of factors to consider determining the price to outsource the accounting for any business.
Practices can choose what all services they want to outsource and depend on the budget they can go for different engagement models.
- Ad hoc (No commitment):The ad hoc model of work on an hourly basis. You would charge on set hourly fees. It would give you flexibilities to send the number of assignments and you can use outsourcing service as and when required.
- Full-time dedicated employee: This is the most adaptable engagement model where you can hire a full-time accountant or bookkeeper. The member of staff will solely work for you and you can train him according to your requirement.
However, the question remains the same, how much does it cost? If you’re thinking accounting outsourcing cost £5 or £8 an hour, wrong. You’re finding a provider who is charging as low, then you will have to struggle to get the work done on time.
What is the main reason behind choosing accounting outsourcing?
To get lower cost. Quicker TAT. Saving on the monthly cost. To get experienced members of staff. So many reasons. But the cost will be always a top priority.
If you’re looking to hire a dedicated staff member, first you’ll do a google search and speak to different providers and get the different pricing. You would get all kinds of pricing ranging from £500 to £2000 a month. The question comes to mind, do we get an accountant or Bookkeeper at less than £1000? If yes, then what will the actual output of the work? Again, so many other questions
What is the best price an accounting practice should pay for a Full-time employee?
Here, we don’t want to compare to in-house cost, infrastructure cost, hiring cost, or any other if you think.
For Ad hoc Service the best price you should pay for an accounting and bookkeeping outsourcing is in the range of £11 to £14 an hour.
Full-time employee (The most preferred way to choose to outsource) should be in the range of £1000 to £1500 a month for both Bookkeeper and Accounting roles depend on the requirement. To get the most out of the full-time member, make sure you sign-up for a long-term minimum of 12 months.
This is so confusing, let’s find out what is actual outsourcing rates for your accounting requirement.
Contact us at email@example.com today to know more about your outsourcing cost and will help you to find what is the best practice of outsourcing for your accounting firm.