You credit part of your company's explosive growth on keeping a tight rein on operations. You even like to do taxes with the help of some necessary software. However, the finances of your business have grown so complex that this is the first time you've had to ask for an extension on filing with the IRS. You're thinking now is the time to hire full-time accounting help like a bookkeeper. Not only will the budget allow for the employee but he or she can free you to focus on what your do best: strategizing and running your enterprise.
The primary expense of hiring anyone is salary. While the amount you ultimately spend depends on your budget and the new-hire's experience and knowledge, the U.S. Bureau of Labor Statistics (BLS) reveals how much full-time accounting help costs on average in Utah:
State averages for bookkeeping positions run $35,200 per year, or $16.92 per hour. Entry-level positions make under $21,890 per year, or $10.53 per hour. The best-paid make over $49,530 annually, or $23.81 an hour.
In Ogden-Clearfield, the mean hourly wage runs slightly over the state mean at $35,620 per year, or $17.13 per hour. You can pay beginners under $18,990 annually, or $9.13 hourly. But if you want the best help, expect to spend at least $50,250 a year, or $24.16 an hour.
Not surprisingly, pay in Salt Lake City is higher. Bookkeepers average $36,250 per year, or $17.43 an hour. The lowest-paid earn less than $24,360 annually, or $11.71 hourly, while the top performers receive over $51,740 a year, or $24.87 an hour.
Employment opportunities for bookkeepers are expected to grow by 11 percent from 2012 to 2022, according to the BLS. This is exactly the same percentage increase expected for all occupations but higher than the 7 percent predicted for all office and administrative support occupations. Demand is driven mostly by the improving US economy.
If you intend on hiring and keeping a bookkeeper, expect to dish out higher salaries each year because he or she won't have any problem finding opportunities elsewhere with better pay.
The Additional Costs
Unfortunately, salaries are not the only costs associated with a full-time employee. First, you have to recruit potential employees by placing ads on employment sites and the paper, networking with other business owners, interviewing applicants, testing their skills, and putting them through background checks. Then you have to hire this person,which entails paperwork, and train him or her. None of these activities are free. Entrepreneur puts the cost of doing all this at an average $4,000 and that's before your new-hire does any work.
Then there are the additional costs associated with each worker, which includes Social Security, Medicare, federal and state unemployment, Workers Compensation, health insurance, fringe benefits such as the use of company vehicles, paperwork, and non-productive time. The BLS calculates that if the total cost of an employee is 100 percent, 68.3 percent accounts for salary and 31.7 percent pays for taxes and benefits. In other words, you better bump up your projected employee pay by almost half to determine the true cost.
Don't forget to factor in the cost of additional space, utilities, and equipment for your new employee. At the very least, you'll need to buy an additional desk, dedicated computer, and, maybe, a phone line. If your office is already bursting at the seams, you may be forced to move to a bigger and more expensive location.
There is a simple way to get all the advantages of bookkeeping help without the expense or hassle of a new employee. Outsource your requirements to a reputable accounting accounting firm. We can supply specialists for any bookkeeping need from receivables to taxes, so you'll be getting the best expertise possible. Please contact us today to see how we can help you.