Bookkeeping is a form of accounting. It is the documentation of financial dealings. Bookkeepers are normally members of a bookkeepers’ institute. This profession mostly involves double entry from which books of account are prepared. These books include the statement of financial position, the statement of comprehensive income and the capital assets movement schedule. The law requires companies to have books of account. All transactions recorded therefore need to be correct.
Bookkeepers keeps business financial records and performs basic and essential accounting tasks. Transactions needing documentation include purchases, sales, receipts and payments by an individual or organization.
There is a large market for qualified bookkeepers. The market ranges from small business to large corporations.
These businesses acquire clients from referrals and from sourcing on their own. A majority of clients who require bookkeeping services are inexperienced in the same and fails to have members of staff knowledgeable in bookkeeping. Small businesses tend to require more bookkeeping services however.
How they make money
Bookkeeping businesses charge clients per hour for their services. The rate ranges widely and is dependent on the bookkeeping business and the scope of work.
When they work
Bookkeeping businesses work on the clients’ documents and records and therefore work with the client during business hours to deliver on their contract. The period of delivery specified in the contract determines how the bookkeeping business will work. They may work for longer hours continuing into the night when they have to deliver on tight timelines. This may also be the case when they have a number of clients and when they would like to minimize their spending.
How much they charge
The rate is based on the local CPA charges. It is also advised by the size of the client and the amount of work the client requires. The client is evaluated to determine the types of records kept and the extent of their organization. The fee may be charged per hour or as a lump sum for the job. The per-hour rate may go as low as $15 based on the negotiation with the client. Clients who have not organized their records for extended periods are not charged the same as those who have not done the same for a shorter period. (Special thanks to bookkeeper botany for their help with this section of our article.)
Bookkeeping is tasking and requires keenness to deliver quality work. Most bookkeepers and accountants disagree on the preparation of books of accounts. However, there are systems that lessen the effort required for this task. There is a margin of error when bookkeeping is done manually but there are systems that offer an alternative.