Full-Time vs. Contract Bookkeeper
What kind of bookkeeper does your business need? I have laid out the pros and cons of a full-time bookkeeper and a contract bookkeeper in hopes to make this a bit clearer for you. Hiring cost, convenience, and your business needs are all factors that can determine which type of bookkeeper you may want to hire.
Cost
Depending on your budget, the hiring cost of a bookkeeper may be one of the most important determining factors in this decision. Outsourcing your bookkeeping is a great option if you can’t afford to hire an in-house, full-time bookkeeper. Hiring a remote bookkeeper typically means a lower monthly flat fee and is a contracted transaction. Paying a bookkeeper as a contractor just means that, as the business owner, you will not have to pay taxes on the money you pay to the bookkeeper, the responsibility of taxes falls on the bookkeeper.
On the other hand, a full-time bookkeeper is typically paid wages or a salary as an employee where you have to pay payroll tax. For small businesses that don’t necessarily require a full-time bookkeeper for their finances, outsourcing your bookkeeping is definitely the way to go. If you are a larger business with the larger budget and thus, a larger influx of transactions, a full-time bookkeeper may be just what you’re looking for.
Convenience
As previously stated, hiring a contractor requires very little work on the part of the business owner. At year-end, if you paid your bookkeeper over $600 within the fiscal year, you will send them a 1099. After that, the responsibility for reporting these payments falls on the bookkeeper. Another way that hiring a remote bookkeeper is more convenient is that they come with their own equipment. There is no need to invest in computers or a desk like you would have to do for a new employee.
A full-time bookkeeper comes with all of the responsibilities of hiring an employee (taxes, new hire forms, training, equipemnt etc). Needless to say, outsourcing your bookkeeping is way more convenient.
Your Business Needs
I touched on this in the previous two factors, but it truly comes down to what your business requires in order to maintain organized financials. If you are a larger business that has a large influx of daily transactions and has multiple streams of revenue, you may want to consider going through the hassle of hiring a full-time bookkeeper.
If you feel like you have a pretty simple business structure and just don’t have the time to maintain financials in a way that allows you to use them as tools, a remote bookkeeper may be just the thing you need! If that’s the case, click the connect button below and let’s chat!
Whether your business needs a remote bookkeeper or a full-time bookkeeper, please know that there is no shame in needing someone to maintain the financial side of your business. There is so much to keep up with in business, this is a small part that can easily be taken off you plate!
Meet Jocelyn
Hi! I am the bookkeeper behind J Ricketts Bookkeeping, LLC. Based in Monroe, GA, I get to enjoy working remotely and growing my virtual bookkeeping business. By working with a virtual CPA firm for years as an office manager and bookkeeper, I can say that I have found what I love to do - BOOKKEEPING! I am a certified QuickBooks Online ProAdvisor with bookkeeping experience in a extensive variety of industries while specializing in e-commerce and service industries.
