How can I compare the cost of Outsourced Bookkeeping to hiring a bookkeeper?
The cost of hiring a bookkeeper is often difficult to calculate. The direct costs are easy to calculate. This would be wages and payroll taxes. However, there are more costs involved. The easiest way to calculate the overhead associated with each employee is as follows: 1) subtract wages and salaries from your total expenses. 2) Divide the total wages and salaries by the number you calculated in step 1. This will usually be a factor of 2 or 3. Now multiply this factor by the hourly wage of your bookkeeper. This is the overhead that each hour of labor must carry in the business. Converting that bookkeeper labor to a sales person or administrative assistant will cause income generation in exchange for this expense.
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