| WHY HIRE AN ACCOUNT ASSISTANT? | | | | an accounting assistant. |
| When you first started your business, you probably did | | | | To hire a competent accounting assistant for your firm |
| your own accounting; and that worked out fine. You | | | | you can expect to pay between $15 and $25 per |
| were short on spendable capital and doing most of the | | | | hour, depending on experience. Add to this the |
| necessary chores yourself was the only way to get | | | | additional costs of employees - paid vacations, sick |
| started. But eventually, you got to a point where you | | | | leave, insurance, bonuses, retirement, profit sharing |
| really needed to concentrate on the income-producing | | | | plans, etc. You'll probably find someone who wants to |
| aspects of your business and hire others to tend to | | | | work 40 hours per week more easily than a part-timer, |
| the details. | | | | but that's not impossible. At any rate, you'll be locked in |
| Recognizing when this point occurs is the first major | | | | to paying for a certain minimum amount of hours no |
| challenge for the entrepreneur. Many will pass it right | | | | matter how much work there actually is. |
| by, believing the only way to keep track of their | | | | The advantages, though, are also quite convincing. An |
| company is by doing all the accounting for it | | | | employee will be more loyal to your company. He will |
| themselves. This is an easy trap to which almost | | | | also be more likely to take a permanent interest and |
| everyone is susceptible. Don't feel bad if it happened | | | | perhaps make a career with you. He will learn more |
| to you, just rectify it! | | | | about your business and therefore be better able to |
| Think about what your time is worth. For example, as | | | | make profitable recommendations for your company. |
| a lawyer, you could command in excess of $300 per | | | | OUTSOURCE |
| hour. Does it really make sense for you to do your | | | | On the other hand, you can outsource your daily |
| own accounting, when it could be done just as well, | | | | accounting duties. There are several cost savings |
| maybe even better, by someone you could pay $25 | | | | advantages to taking this route. |
| per hour? Of course not! You can still keep a close | | | | You won't be paying for employer payroll tax |
| eye on your business accounting without doing it | | | | expense, employee benefits and liability insurance. |
| yourself. It just takes discipline and a good idea of | | | | These costs will, of course, be built into the consultant's |
| what reports you need to see and how often. Then | | | | fee, so it's a wash at best. But you still save money, |
| assign the detail work to someone else! | | | | because you have no recruiting and interviewing costs |
| ACCOUNTING ASSISTANT'S DUTIES | | | | and no training costs. And should you be unsatisfied |
| So once you've come to this decision, you need to | | | | with the service, there will be no additional recruiting, |
| decide between hiring an employee to keep the books | | | | interviewing and training costs to replace your |
| or outsourcing the job to an accounting or bookkeeping | | | | accounting assistant. |
| firm. Let's look first at what you expect the accounting | | | | You will not have to worry about employee lawsuits. |
| assistant to do. This may include some or all of the | | | | You can release an outsourced accounting assistant |
| following: | | | | without raising your unemployment rates. |
| 1. Keep up-to-date and accurate record of all the | | | | Most professional accounting assistants will have their |
| company's financial transactions into physical journals | | | | own office space and will not need their own office or |
| and ledgers or a computer-based system. | | | | cubicle at your office, saving you the space and cost |
| 2. Periodically, usually monthly, they balance the books | | | | of desk, computer, software, office supplies, etc. If you |
| and create financial statements and other | | | | require the convenience of having your computerized |
| management reports. | | | | accounting records onsite for your review, a small cost |
| 3. Receive record, deposit cash and pay the | | | | can connect your system to theirs. |
| company's bills. They balance bank statements | | | | And one of the best parts is that you completely |
| regularly, investigating and correcting any discrepancies. | | | | control the amount of money you spend on your |
| 4. Calculate payroll and issue payroll checks. They may | | | | bookkeeping. The amount you are charged by the |
| oversee this function with an outsource payroll | | | | outsourcing firm will be for the amount of time they |
| company. | | | | worked on your accounting records. It will not include |
| 5. Keep inventory records and calculate product costs. | | | | answering the phone, dealing with drop-ins, chatting |
| 6. Purchase supplies | | | | with other employees, etc. You can adjust the amount |
| 7. Prepare purchase orders | | | | of hours they work for you month by month. Some |
| You may also want someone who will make | | | | months you may wish to give them additional work, |
| schedules, file bills, sort documents, fill in at the | | | | some months let them work bare bones hours. You |
| switchboard and other duties that would require | | | | can't do this with an employee. You're tied in. |
| someone in-house. You need to take this into | | | | SUMMARY |
| consideration. | | | | Always remember, "You get what you pay for". |
| HIRE AN EMPLOYEE | | | | Whether you decide to hire or outsource, the |
| The kind of job described above can be called | | | | accounting records are the core of your business. |
| different things in different companies. Some typical | | | | Without excellent bookkeeping, your business will have |
| titles are bookkeeper, accounts payable or receivable | | | | a hard time succeeding. |
| clerk or billing clerk. To maintain consistency, we'll call it | | | | |