In our experience, 2 minutes per transaction (on average). This is a very simple estimate and one may miss the possible range of time it takes depending on the transaction, but we mention it as it is still useful in allowing you and us to plan and budget the workload.
However, what is a "transaction"? This is anything that creates a financial entry in the accounts, such as a bank payment, sales invoice, bill, credit note, manual journal, expense claim etc.
Ultimately, the time it takes to do the bookkeeping will vary according to the transaction type, the complexity, the volume of transactions, and the bookkeeping process. We go into some more detail to give you a bigger picture with the 3 main transaction types below:
Bank Payment
Time Required: Processing a bank payment typically involves recording an outgoing payment made by the company. The process can take anywhere from 1 - 5 minutes.
Steps Involved:
Open the accounting software or spreadsheet.
Navigate to the appropriate ledger or account (e.g. cash or bank account).
Record the details of the payment, including the date, payee, amount, and purpose.
Save and categorize the transaction.
Factors Affecting Time:
The complexity of the payment (e.g. a single payment versus a batch payment).
Whether the payment is recurring or a one-time transaction.
The efficiency of the bookkeeping software or system being used (e.g. if the bank account connects to the software for an automatic bank feed).
Sales Invoice (Accounts Receivable)
Time Required: Creating and recording a sales invoice can take anywhere from 3 - 10 minutes, depending on the complexity of the invoice and the level of detail required.
Steps Involved:
Generate the sales invoice using accounting software or a template.
Include relevant details like customer information, description of goods or services, quantity, unit price, tax codes, and total amount.
Save and categorize the invoice.
Optionally, send the invoice to the customer.
Factors Affecting Time:
The level of detail and customization required for the invoice.
Whether the business uses accounting software that automates the process.
The number of line items on the invoice.
Whether the invoices are manually created or fed in from another platform.
Bills (Accounts Payable)
Time Required: Processing a bill can range from 3 - 12 minutes.
Steps Involved:
Receive and review the bills from suppliers or vendors.
Record the details of the bills, including the date, supplier/vendor, tax code, amount, and due date.
Save and categorize the bill.
Optionally, schedule payment based on terms.
Factors Affecting Time:
The number of bills to process.
The level of detail on each bill.
The efficiency of the accounts payable process and software used.
Whether or not a backup document (receipt/invoice) is attached to the bill.
The bottom line is that whatever the time it takes to complete your bookkeeping accurately, our low rate per hour and actual time basis at Vookeeper ensures you are charged economically and fairly.
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