BIZ|Tech Blog

I have been doing bookkeeping for many years for churches, non-profit organizations, and small businesses.  Unlike many people today whose knowledge of accounting extends only to the capabilities of Quick Books, I learned the hard way, with double-entry accounting using green ledger paper.  It might surprise you to learn therefore that I don’t do the bookkeeping for my company.  I can’t afford myself.

Here are the numbers:  My time bills out at a minimum of $85/hour, and most weeks, I don’t have trouble filling it.  When I do have gaps, my focus is on building the business, which pays dividends down the road.  My very competent accountant charges me $25/hours for his work, and since he is far more experienced than I, it probably takes him half the time it would take me.   Given the above, it is saving me at least $60/hour to use him instead of doing it myself.

As another example, we provide IT services for various law firms.  I suspect they bill $150/hour at a minimum.  If they pay us to handle their IT rather than trying to do it themselves, they save conservatively $65/hour.

The bottom line is that if you think you are saving money by handling routine tasks such as IT yourself, you may well be wrong.  This is the essence of the new outsourcing.

This entry was posted on Tuesday, February 9th, 2010 at 2:03 pm and is filed under Uncategorized. You can follow any responses to this entry through the RSS 2.0 feed. Responses are currently closed, but you can trackback from your own site.