How much should I pay for this (bookkeeping)?

amother

Saddlebrown

Tue, Nov 24 2015, 7:30 pm

I have a small manufacturing business with 3 divisions and 2 partners. I am looking for a full-time bookkeeper that can even work from home. Position can be for a male or female. What is an appropriate salary to offer for such a position in NY/NJ area?

Someone in the business suggested $50,000 but when I have asked people they said that is way too low for anyone with experience. I was told to pay a girl starting out that...

Any thoughts?

amother

Copper

Tue, Nov 24 2015, 9:24 pm

If you want someone with experience who is good full time you'd have to pay a bit more because that comes out to $25 an hour so unless you are adding benefits, its really not that much more than a secretary.

Even a little more will do. and/or upward mobility.

or hire someone flextime or almost part time.

mha3484

Tue, Nov 24 2015, 9:36 pm

A few related suggestions. Make sure to do a comprehensive background check on anyone who has access to your accounts. I would be very nervous to have a new employee you don't know have access to you books in her home. I say this because I have seen people get taken advantage of.

seeker

Tue, Nov 24 2015, 10:27 pm

Considering that you are offering a work from home opportunity, you should be able to offer somewhat less than the going rate for the office version of the job. After all, the employee won't have to commute (saving time and expense) or even get dressed (expense) and may likely save on other expenses such as childcare (no commute time and may even be able to work while kids are home after school if they're old enough to entertain themselves more or less.) Especially if the hours are flexible - I.e. you need the bookkeeping done but if something comes up for them during the day they could do it at night... I think there is room to pay less for working from home.

amother

Saddlebrown

Tue, Nov 24 2015, 10:38 pm

amother wrote:

I live in flatbush and am a bookkeeper with eight years of experience. I work 30 hours a week and make 46k for the year.

The job would be about 30 - 35 hours. This is what made sense to me but 2 people told me they make about 75k. doing bookkeeping but that is in office work...

amother

Oak

Tue, Nov 24 2015, 10:40 pm

Unless it is full time (meaning standard business hours) I would say $25 per hour is underpaid for someone with experience.

I actually do this from home very part time/set my own hours and charge $35 per hour. However, the amount I make greatly varies from week to week.

amother

Saddlebrown

Tue, Nov 24 2015, 10:46 pm

amother wrote:

But isnt it different when you are salaried vs working per diem... Aren't salaried positions usually less? I mean granted if I gave you full time work, I wouldnt expect to pay you the same 35$ per hour.

seeker

Tue, Nov 24 2015, 11:25 pm

amother wrote:

Yes. The security of having a consistent salary definitely offsets the lower pay. Per diem/per hour workers NEED to charge more because the work is by nature inconsistent and they need the total bottom line to work out. They also deserve a bonus for being available on such a basis.

And I do not have experience in the bookkeeping field but I also thought 50k sounded high for a starting salary given that you don't need a lot of training to do it. You're not talking about high-level accounting, tax preparation, or financial advisement/planning. You could theoretically do it right out of high school if you've had a semi-decent education and a good head for numbers and finance (and, nowadays, technology.) Plus you're talking 30 hours a week which is actually considerably less than full full time - 9 to 5 times 5 days per week is classic full time and that makes 40.

So yes for a less-than-full time job, working from home with no commute and no professional wardrobe and potential flexibility, with little to no specialized training or higher-ed degree required, 50k sounds quite generous and actually I think I might like to take this job!

amother

Blush

Wed, Nov 25 2015, 5:43 am

I'm an accountant and previously did bookkeeping in the NY area. 50,000 sounds high for the hours you need and the flexibility to work from home. I'd love to know where someone is getting 75k for a bookkeeping job, ... Even with a lot of experience that seems high. I'm assuming your qualifications include some experience and no particular schooling.

Important thing to remember is the principals of a capitalistic economy- as an employer, you get to pay whatever someone who meets your requirements is willing to work for, not what your BIL thinks you should pay. You don't want to underpay because then you may end up with someone who's desperate or taking the job "until they find something better." But you should be able to get a feel for whether you're offering a good ballpark salary when interviewing. Also in my experience both as an employee and employer, employee retention is based a lot more on other factors (flexibility, overall satisfaction, "good boss") than on the actual salary.

Last point- your best way to figure out appropriate salaries is to look at current job listings. Check local classifieds, Craigslist and anywhere else that you would post your job and see what similar jobs there are going for.

chaiz

Wed, Nov 25 2015, 6:10 am

amother wrote:

Someone in the business suggested $50,000 but when I have asked people they said that is way too low for anyone with experience. I was told to pay a girl starting out that...

Any thoughts?

I did not know girls working is legal. Isn't that child labor?

groovy1224

Wed, Nov 25 2015, 6:10 am

amother wrote:

The job would be about 30 - 35 hours. This is what made sense to me but 2 people told me they make about 75k. doing bookkeeping but that is in office work...

Sorry, but that makes absolutely no sense. That's more than many professionals make. Do not go by that.

For the hours you are looking for, a salary in the low 40s would be fine. Especially since you're offering the work from home option.

But also, what do you mean by bookkeeping? Do you just need data entry, or do you also need someone with a basic accounting background to maintain a general ledger, do payroll, etc? If just the former, I'd offer even less.

chaiz

Wed, Nov 25 2015, 6:11 am

seeker wrote:

Yes, but the employer also has benefits when the employee works from home. I do not think that offering flexibility when it is not a big deal for the company should still be considered a perk to offset a lower salary.

amother

Saddlebrown

Wed, Nov 25 2015, 8:22 am

chaiz wrote:

Working from home is a possibilty. We would have to see how it works out... There will very be days where the employee would have to come into the office.

amother

Saddlebrown

Wed, Nov 25 2015, 8:26 am

groovy1224 wrote:

Yes. Ledger, payroll, collections etc. A little more than basic.
No health benefits. Paid sick and vacation are options.
I would like to say the work can be done whenever or wherever but we would have to see how that pans out.

chaiz

Wed, Nov 25 2015, 8:35 am

amother wrote:

Glassdoor.com is a great place to start your research for salary information. Based on the information you are providing you are most probably offering a salary that is on the lower end.

amother

Saddlebrown

Wed, Nov 25 2015, 9:50 am

chaiz wrote:

Glassdoor.com is a great place to start your research for salary information. Based on the information you are providing you are most probably offering a salary that is on the lower end.

Do you work in the field? There are such mixed reviews on here with most people saying they make in the 40s and that it would be adequate. Theres a few saying its underpaid.
Are you a bookkeeper making over 60k?