How much, estimated, would it cost to outsource all my accounting?

Question

I have a small General Contracting Company that literally has NO formal accounting system in place, I am currently using Excel Spreadsheets and now that business is picking up, this is taking way to much time. I was thinking of outsourcing my entire account function of my company which would need to include set up, data entry, invoicing, receiving payments, collections, etc basically starting from scratch...how much, approximately, would it cost for me to have someone set this up for me and then how much would it cost to have someone do the maintenance? They would also have to give me reports for each project probably weekly. Thanks!

Answer 1

It really depends on the time involved. I would suggest that you first consider purchasing an accounting software package such as Quickbooks Pro or Quickbooks Enterprise. You, or someone who works for you can do a great deal of the work yourself and than you can engage the services of a CPA for the big stuff... Tax returns, Financial statements for banks, etc. You need a formal system in place and sometimes it is helpful to have a CPA who is highly familiar with the software come in and help you get your chart of accounts set up correctly from the beginning. You also need to put into place, a system where one person is not receiving the money  A/R  ( accounts receivable) and also handling your payments, A/P ( accounts payable). This can be hard to do in a small business, but it is essential for your protection. You can, of course, outsource all of this to an accounting practice if you are willing to pay for it, but you will still need an accounting software package in place that you know how to use.Your CPA can be your best advisor. Hope this helps!

Answer 2

You would probably pay a book keeper about $400 per month depending on the volume you have, and then pay an accountant $500 at the end of the year to prepare your financial statements.