I HATE BOOKKEEPING!!!

I HATE BOOKKEEPING!!!

Weird thing to hear from someone whose company specializes in Bookkeeping/Payroll, I know. But I do, I hate it, and for about 9/10 business owners, it doesn’t make financial sense for them to handle their own books. 

This isn’t a sales pitch, it’s just basic math. Most Bookkeepers will charge somewhere between $60-$150 an hour. For transparency sake, at SPB we charge $70 p/h, or $65 if you’re also a payroll client. So let’s say my Books would take an hour a week (extremely common timeframe for the majority of our clients), so roughly 4 hours a month. In that hour, I’m doing things like reconciliations (yuk), confirming expenses and services have been properly categorized, and then reviewing my Profit & Loss statements to identify what I call, ‘leak areas’. We would be charging you $260 a month for that. 

Here is where the math gets fun. If you had an extra 4 hours a month, could you make one additional sale? Could you make multiple? Unless you are horrible at sales, the answer is, ‘Yes’. 

So how much is even one extra sale worth to your business? For most of our clients, one extra sale is easily worth more than $260. Imagine if a sale in your business involves subscriptions or recurring revenue. Let’s says those extra 4 hours led to one singular $250 sale, and that sale repeats monthly in your business. Those extra 4 hours have now led to $3,000 a year, for an ROI of 1,154%. Imagine if you repeat that process, just that one extra sale a month. YOUR PROFIT IS $32,800!!! 

With clients that we go through this process with, we typically find that the owner’s time can be valued at 6-10x that $65 p/h rate. Check out this article below on some of the numerous benefits of outsourcing your company’s bookkeeping, and feel free to plug in numbers unique to your business!

https://www.southernpb.com/closing-books/