By outsourcing work the tasks that need to be completed are still being done yet at a less cost to the company. The reason is that many outsourcing companies are able to handle large volumes of workload at a discounted rate to each of their clients. One of the first places business owners look at when trying to downsize is to look at the payroll and see where to "trim the fat." In most cases accounting can be limited or completely cut out all together. By cutting the accounting department, that eliminates staff accountants, accounts payable people, accounts receivable people, collections people, payroll people, controllers, chief financial officers, and anyone else that has a role in the accounting department. Now these business owners have eliminated many positions but still need the work completed by these people. Where do these business owners turn to? They look for accounting or bookkeeping firms that offer all services that would complete an accounting department.
If we look at cutting just one single job in the accounting department we can see how much this really saves an employer. According to Salary.com the average costs of a staff accountant are as follows:
- Annual Salary = $42,962.00
- Payroll Taxes (Matching) = $3,200.67
- Workers Compensation = $537.03
- Insurances = $4,138.87
- Vacation / Sick Time = $2,478.58
- Plus any other benefits the company offers.
This totals a minimum of $53,317.15 for one of the least expense employees. If you add a payroll clerk, accounts payable clerk, accounts receivable clerk, and a controller, the total annual cost for these employees are $335,786.81. Imagine if you hired a company to outsource your payroll for around $4,000 per month and that includes EVERYTHING from payroll to producing monthly financial statements. That is an annual savings of $287,786.81!!
Profit and Las Bookkeeping, LLC is an all inclusive accounting and bookkeeping firm that specializes in helping small and medium sized businesses with all of their accounting and bookkeeping needs. If you are a business owner needing help with your books, call Profit and Las Vegas Bookkeeping at (702)405-9912 and visit us on the web at www.profitandlasvegas.com. We look forward to working with you.
