What Does It Cost To Hire An Accounting Firm?
This short post covers bookkeeper fees, accounting salaries and Controller pay (we use Connecticut as an example).
Most of the CEOs we work with are concerned about the rising cost of doing business across the United States. As a CPA and business owner, I most certainly am too! Without getting into the political and economic conditions of the Charter Oak state, I conducted a brief study on the real costs of hiring a bookkeeper or accounting employee for a Connecticut business owner.
As a Stamford, CT-based accounting services firm (serving the USA) we work with companies of all shapes and sizes to help them maximize their net income and streamline their operations.
One of the most common opportunities to save on staffing costs and increase quality of service is in the very position that many CEOs advertise for on job boards like Indeed.com and Monster.com: Bookkeepers, Accountants, Controllers and CFOs.
Let me illustrate my point with the facts (We are accountants after all…).
Indeed.com says full-charge bookkeepers in Fairfield County make an average salary of $55,590, before any taxes and benefits. Accounting managers, and Controllers currently earn $93,000 to $125,000, and CFOs can command between $130,000 to over $200,000 for a small company, and over $500,000 for a large company.
Bookkeeping & Accounting Staff Rates & Salaries In Connecticut
When you add in payroll taxes, benefits, office supplies, training, vacations, and overhead – This number climbs up by 20% or more. And that is for a 9 to 5 employee
When a new business owner asks us, “What does it cost to hire an employee in Connecticut?” we always tell them to add 20% to 40% to that employee’s base salary to account for all of the cash and non-cash expenses that go into investing in their staff.
Always remember to take into account:
6.2% for Social Security tax
1.45% for Medicare tax
FUTA of 6% of the first $7,000
Add 10% for basic insurance, workers comp, and other benefits
Add 5% for office supplies, computer, software, telephone, support, training, etc.