How well kept are your accounts?
Have you ever given a thought about your bookkeeping? Well, let’s take a moment to think about it. You are a small business owner. You are now doing your books by yourself. You are bored and sometimes frustrated with doing it. More importantly, it is something that if you don’t get right, tax accountants will charge you upwards of $185 dollars an hour to fix your accounts up before lodging your tax return.
Let’s do the maths here.
In a week, maybe you spend three hours on your accounts. These three hours are most likely spent in your free time where you could be spending it with family. Let’s put a price on time spent with family, a conservative amount would be two times your deemed hourly wage which is probably about $60. The total of which is $180. This is only an opportunity cost and not a real outgoing.
We assumed your hourly rate is $30. The reason why we took double your hourly rate is because if you were doing your accounts in work time, you would need to pay yourself and another person to cover your duties in your absence.
Now let’s suppose you engage M Plus Accounting to do your tax work only. It would take us some time to check through your accounts to ensure accuracy. The total cost of checking and correcting your accounts plus your tax return would be $1,900.
Let’s say you hire M Plus Accounting to do your bookkeeping at $44 an hour. Because of our experience and skill it takes us 2 hours. That is $88 per week or $2,288 a year (tax deductible).
Because we also do your accounts, your tax return is done at a reduced rate (as we are already very familiar with your accounts and know they are correct). Let’s put the cost of doing your tax return at $1,100.
You would save $2850 per year if you did it yourself. But you would also be losing almost 10 full days of family time per year(Calculated using 16 of usable hours of family time per a 24 hour day). What price would you place on this time? Based on our example it would cost you $9,360 but it could also cost you intangible items like unforgettable memories or special moments.
At the end of the day the numbers add up. You are better off concentrating on your business and family, leaving the accounting to the accountants. We provide bookkeeping services from just $44 per hour.
Do you think you spend too much time on your books? We can help! Please contact us now for a free first consultation so we can get to know your business and advise you further.