Discover the Best Fit for Your Business Needs
Full-time Employee or Outside Contractor?
Defining the Roles
Full-Time Bookkeeper: A dedicated employee who works exclusively for your business, managing all aspects of your bookkeeping and accounting.Full-Time Bookkeeper
In-Depth Knowledge of Your Business: A full-time bookkeeper will become intimately familiar with your finances and operations, allowing for tailored financial strategies.
Consistency: With a dedicated employee, you benefit from continuity in your bookkeeping processes, reducing the risk of errors and miscommunication.
Availability: Having a full-time staff member means they are readily available for urgent tasks or questions, providing peace of mind.
Integrated Team Member: A full-time bookkeeper can collaborate closely with other team members, enhancing communication and workflow.
Hiring and Training: The process of recruiting, hiring, and training a full-time bookkeeper can be time-consuming and resource-intensive.
Higher Costs: Full-time employees come with salaries, benefits, and additional overhead costs. In Ontario, the estimated monthly cost for a full-time bookkeeper typically ranges from $3,500 to $5,000 CAD, depending on experience and complexity of tasks.
Limited Flexibility: If your bookkeeping needs fluctuate, a full-time employee may not always be fully utilized, leading to inefficiencies.
Outside Contractor
Cost-Effective: Contractors often work on an as-needed basis, allowing you to pay only for the services you require. The estimated monthly cost for an outside contractor in Ontario can range from $500 to $1,500 CAD, depending on the scope of work and hours needed.
Flexibility: You can easily scale services up or down based on your business needs, making it easier to adjust to busy seasons or changes in workload.
Expertise and Variety: Outside contractors often bring diverse experience and knowledge from working with multiple clients across various industries.
Less Familiarity: Contractors may not have the same depth of knowledge about your business, potentially leading to less personalized service.
Availability: Depending on their workload, contractors may not always be available when you need them.
Communication Challenges: Working remotely can sometimes lead to miscommunications or delays in responses, especially if the contractor is juggling multiple clients.
Making the Decision
When deciding between a full-time bookkeeper and an outside contractor, consider the following:- Budget: Assess your financial resources and determine which option fits within your budget without compromising service quality. Factor in the estimated monthly costs for each option.
- Business Size and Needs: Evaluate your current and future bookkeeping needs. If you anticipate significant growth, a full-time bookkeeper may be worth the investment.
- Workload Variability: If your bookkeeping needs fluctuate widely, a contractor may provide the flexibility you require.
- Long-Term Goals: Consider your long-term vision for your business. If you plan to scale, having an in-house bookkeeper could support that growth.
