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Accounting Firm Saves 70% on its office labor within the first 30 days of acquiring the services of Online Staffing!!!
Situation:
A small accounting firm catering to small and medium-sized businesses in Seattle prepares quarterly and annual tax returns as well as consulting with clients and performing other accounting-related services. With the economy becoming more and more of a challenge, the firm's clients are looking to save money whenever and wherever possible, challenging the skills and abilities of the firm to meet the clients' needs on a budget, as well as being able to get into the finances of their clients and find more ways for their clients to maximize their respective incomes while saving on expenditures. This being the case, and out of a desire to maximize client retention (by meeting the various needs and demands of each client), the firm provides bookkeeping services their clients as well.
Challenges:
- The firm makes little or no profit on bookkeeping, especially with the rising costs of competent bookkeeping labor in the workforce. However, unless the firm provides bookkeeping services, providing higher-function accounting services will not be possible, as clients may go elsewhere to find all of the services under one roof.
- The firm takes a significant risk in hiring and training new personnel to fill the needs of its existing clients. Due to uncertain times in the economy, employee turn-over rates are on the rise as employees are continually updating their resumes with the additional training they are receiving from the firm so that if, by chance, a better offer comes along, they'll be ready to take it.
- Because of the conditions mentioned in the previous paragraph, not only is it more and more difficult to meet the needs of existing clients, but is almost impossible to grow the business, since it is difficult - if not impossible - to make solid commitments to new clients when these underlying conditions make it so difficult to do so with confidence that the firm can follow through on its commitments in this area.
Solution:
Incorporate the use of Online Staff (in this case, Online Bookkeepers) into existing operations, which not only lowers the firms labor expenditures by 70%, but allows accountants to concentrate on the higher-level (and more profitable) functions of their firm. Furthermore, they also have more time and freedom to bring in more business (knowing that they have the ability to very quickly add Online Bookkeepers, Virtual Assistants, or other Online Staff as their needs change), or simply spend more quality time with their loved ones.
Online Staffing Client Calculations***
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Hourly |
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Annual |
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Current Bookkeeper Hourly Wage (per bookkeeper) |
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$18.00 |
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$37,440.00 |
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Employee Benefits (Salary X 30%) |
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$5.40 |
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$11,232.00 |
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Employee Turnover (Salary X 10%) |
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$1.80 |
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$3,744.00 |
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Total Current Bookkeeper Costs (per bookkeeper)
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$25.20 |
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$52,416.00 |
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Contracted Price for Online Staff (per bookkeeper)
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$8.00
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$1,280.00 |
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Annual Online Staff Investment (per bookkeeper) (Monthly X 12)
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$15,360.00 |
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Annual Labor Savings (per Online Bookkeeper)
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$37,056.00 |
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Number of bookkeepers converted to Online Bookkeepers
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4 |
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Total Annual Savings using MyOnlineStaff
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$111,168.00 |
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***NOTE: In this case, the client chose to retain one of its existing bookkeepers to manage the other 4 Online Staff for the first few months, thereby ensuring quality control until the clients' Online Bookkeeping Staff got to know the accounts, and until the client became more comfortable working with their Online Staff. Eventually two more Online Bookkeepers were added, and once the clients' senior in-house bookkeeper retired, one of the senior accountants at the firm expanded their office by annexing the space formally occupied by the in-house bookkeepers, since the firm came to realize that in-house bookkeepers were no longer needed!
Result:
- In less than a month,this accounting firm was able to realize a 70% savings in their bookkeeping labor costs using Online Bookkeepers. Each one is able to handle all of the needs of the firm's clients assigned to them with speed, accuracy, and quality. Furthermore, as a result of the triple-redundancy provided by MyOnlineStaff, this firm no longer has any of the normal headaches associated with the hiring, training and retention of their now fully-trained staff, since MyOnlineStaff handles all of that internaly!
- The firm can now freely expand it's business by adding new clients at their leisure, without the need for addiing additional overhead or capital expenditures such as:
- New computer, printer and other related hardware for the employee
- (Your Online Staff comes fully equipped with all of the standard equipment needed to perform standard bookkeeping functions). Special needs such as proprietary software are worked out on a case to case basis, but certainly can be easily dealt with.)
- Additional office space for the employee
- (We are your virtual back office, therefore you will never need to provide additional office space for your Online Staff).
- Additional desk, chair, phone, etc for the new employee
- What was once a break-even endeavor at best is now a highly profitable service that adds six figures directly to the bottom line without any additional capital expenditure to make it happen!
- Client is now considering the services of a Virtual Assistant for each senior accountant in order to further maximize productivity (thereby maximizing profitability) for the firm!
Contact Us today for a free analysis of how Online Staffing, Online Bookkeepers and/or a Virtual Assistant can best serve you!
MyOnlineStaff |
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