How to price outsourced bookkeeping in a small business – A Simple guideline for sellers and buyers

Pricing of a professional service is hard to get right.  Below is a sales letter that explains how we price or bid outsourced bookkeeping and outsourced accounting in our 200 bookkeeping offices around the US.   It is a simple formula that allows the accountant to be profitable, but provides the entrepreneur comfort that they are getting a fair deal.

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Pricing of a professional service is hard to get right.  Below is a sales letter that explains how we price or bid outsourced bookkeeping and outsourced accounting in our 200 bookkeeping offices around the US.   It is a simple formula that allows the accountant to be profitable, but provides the entrepreneur comfort that they are getting a fair deal.

 

For business owners – as you read this remember the true burden rate of in house employees.   For every $1.00 you pay a bookkeeper it cost you on average $2.56 in total cost.  That’s known as the burden rate. 

 

Even higher then the burden rate on a business is the opportunity cost of not getting around to doing the important task compared to the urgent.  Bookkeeping requires a lot of management that pulls you away from creating real wealth. 

 

For accountants – the only reason this super low pricing works is that by using Paperless Overnight your staff will be able to compress 8 hours of work into 4 hours and within 90 days, they’ll be able to get it down to 3 hours.   Even better the accountant can use retired CPA’s or housewives to do much of the work at home.   We have 14 contractors working for us at an average burden rate of 15.50 per hour.  In the typical business or accounting office a bookkeeper comes with a $36.00 an hour burden rate.  Even better all our people are part time, so they only bill when they are working. 

 

This letter we send to local business people with 5 to 100 employees explains the lower cost and how we can deliver better service.  

 

 

8020 Accounting LLC

Box 2254 Casper WY 82602

This is a: S&P Certified Letter

                                (Short & to the Point)

 

Memo from KC Truby                                                                                     

The Lonesome Cowboy 

kctruby@msn.com  or

 

 

If you would like to get rid of your bookkeeping department to cut cost or drama, here is how it can be done with little disruption.

 

Using new technology called Paperless Overnight, we can link your bookkeeping computer to our office and we’ll do your books from down the road instead of down the hall.  In a few days it will be hard to tell where not in the office 24 hours a day.  Your books get done fast, accurate and for less then it cost now, but best of all no drama.

 

 

 

Here is how we do it for you.

 

1. We convert your office into a Paperless Operation – within 48 hours.
2. We scan all your documents to Paperless and capture your computer transactions.
3. We can do 40 hours of bookkeeping in 20 hours.  It takes us half the time to do books because we have taken your office paperless and all our staff use dual 24 inch monitors.  You save big.
4. Over the next 90 days we install ‘best practices’ in up to 100 categories in your office. This cuts your job cost by another 25%. Everything you wish you had time to get done – we do, right now.

 

Best of All!  We do not assign one bookkeeper to you.  We put 5 people on your team working on a management by exception process.  What that means is low paid college kids read all your documents overnight by hand and name them.  Then low paid, work at home, data entry clerks ($10 an hour) who are good at simple tasks like ‘enter a bill / pay a bill’ do 80% of the low end bookkeeping.   When ever a task takes over 2 minutes the data entry person bumps the work up to an assistant manager who

we pay $15.00 an hour.   They can get almost the entire job done, but when they are confused

the work goes up to my retired work at home CPA’s who get paid $22 an hour.    But the CPA usually only works one or two hours a week on your account so you only pay for the actual time you need a really smart staff person.   Now those are my hard payroll cost, the next paragraph gives you an idea of how the fees are calculated.

 

 How we calculate the fee.  We are twice as fast as your in house bookkeeper (because of Paperless Overnight) and our burden rate for labor is ½ what you pay.     

 

So our bid process is simple.  If we pay $10 to enter transactions we charge you $20 and so on up the skill chain.  You have 100% open access to all time and billing reports at all time.  In order to drive your cost down we’ll use the Paperless Overnight at $35 to $75 a week, but that is a low cost to get paper out of your life.

 

If your tired of bookkeeping problems and high cost year after year after year we can help you right now.  3 easy options to learn more….

A.    Call our office at (local number) and ask for a bid

B.     Go to http://www.CashCowAccounting.com   and get a free DVD demo by mail.

C.     Watch a live demo on Wed at 10AM Pacific at http://www.KCTruby.com/Live when KC Truby the developer of Paperless Overnight explains how the entire process works live from his barn in Wyoming.

 

Thanks for reading this S&P Certified Letter – Let’s make 2010 the year you become a Cash Cow

KC Truby

The Lonesome Cowboy

Article Tags: Outsourced Bookkeeping, Burden Rate, Paperless Overnight

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