Cost Saving Analysis

Hiring a Virtual Bookkeeper is a Cost-Saving Measure!

When you hire an employee in a traditional relationship, you are committed to more than the base amount salary the employee receives. You must pay employee taxes, overhead for space and equipment as well as supplies, benefits and pay for time not worked, such as during vacations, holidays, and sick time–even breaks and lunches. If you experience high turnover in the position, you will also realize considerable cost in recruiting, hiring, training, record maintenance and even severance pay. Your costs would break down something like this

Cash Flow With Change Jar

Employee Costs

Part-Time (20 hr/wk)

Base salary (Approx $17/hr)

$17,680.00

Payroll Taxes (12%)

$2,122.00

Administrative costs (7%)

$1,238.00

Equipment/Maintenance/Supplies

$3,500.00

Rent of space for in-house employee

$2,250.00

Annual Total

$26,790.00

However, if you hire Virtual Bookkeeping, USA at a flat monthly rate, you avoid the expenses required to house and supply an employee. The current hourly range is anywhere from $45 – $75/hour in the Midwest. At tax time, Virtual Bookkeeping, USA files as a corporation, so filing is simple you don’t need to do a 1099 and you never have to open human resource files. You get an experienced, highly trained, quality assistant; plus, you get to keep your private space private! No wasted time, no sitting around time. We use our time efficiently to benefit both of us.

Costs for Virtual Bookkeeping, USA breaks down something like this:

Virtual Bookkeeper Costs

Hourly Rate

Average Monthly rate = $550

$6,600.00

Payroll Taxes (12%)

$0

Administrative costs (7%)

$0

Equipment/Maintenance/Supplies

$0

Rent of space for in-house employee

$0

Annual Total

$6,600.00