October 20, 2021
Top Reasons to Outsource: Costs
When you outsource something, you are importing expertise and exporting problems! That may have already been enough to convince you, but in case you want more information, this blog series will cover the eight areas that Miller Management provides when you outsource your accounting and/or payroll with our experts.
Top 8 Categories:
Costs
Today, we will cover the seventh topic on the list: Costs. If you didn’t start at the beginning, you may want to go back to Accountability and work your way through the list.
Let’s first define what we mean by costs. Which really boils down to the cost of an Employee, versus the cost of using an Outsourced organization.
For an employee, you will want to make sure you are offering a fair wage and are thinking of all the factors that go into the position. For starters, some factors may include hours, education, and the experience of the employee. Your organization may also need to take into consideration the overall budget and incoming giving.
Additional factors of vacations & other paid leave, insurance, disability, retirement, and professional development expenses should be considered. Lastly, you should consider the office space, supplies, and utility use of this employee.
From our Payroll 101 post that applies to all compensation positions: “One token to leave you with for compensating Pastors is to remember to be consistent and bless with grace and generosity.”
According to research done by Tithe.ly a Church Business Administrator salary range could from $47,500 – $62,000 per year. Their role may include things like overseeing the finances (budget, giving, payroll, and insurance); some human resources functions; and they may be the liaison for any legal matters.
Expenses
That is the money necessary just to hire the person. Once the employee is hired, they will continue to use resources to complete their job. That means more money in the areas of check stock, accounting software & maintenance, and ongoing training to keep up with tax laws.
Then there are the backups you need to keep in place and disaster recovery expenses, just to be safe. And don’t forget to be prepared for the occasional penalty for filing something incorrectly with the IRS. While we don’t want to burst your bubble, you also need to be prepared with anti-fraud measurers.
MM Difference
Whew! Well, I don’t know about you, but my head is spinning just a little. Not only is the onboarding process of an employee expensive, but then there are the costs needed to be compliant with church by-laws and the IRS!
I know what you’re thinking…it’s starting to sound better and better; that outsourcing option. Honestly, we couldn’t agree more. It’s why we are in existence in the first place. We know that Pastors want to pastor, not keep books. Administrators want to facilitate the programs necessary to run their non-profit, not keep up with the nuances of tax law.
Let the experts help you out! We love digging into the puzzles that are your financial statements. Or figuring out the correct way to classify that employee. Donor statements and church budgets? Not a pain in our game. We’ve taken the classes (and probably aced them). We’ve studied the tax code. And studied the tax code. Oh, and did I mention, study the tax code updates? It’s what we are passionate about; being your partner in ministry.
Outsourcing Costs
Yes, we do come at a cost. But the cost of hiring the church accounting experts instead of floundering on your own, are priceless. When you hire an outsourcing company, you are paying for the experience necessary to be experts, clarity in your reports, and confidence in your financial decisions.
We’d love to talk to you more about that, because we really do put a number on it; we are numbers people after all. Simply contact us to schedule a time to visit.
We are wrapping up this series with our last post on Industry Resource.
Looking for more to read? Start here:
- The Outsourcing Option from Church Law & Tax
- Resources on Paying Church Workers – from Church Salary
- The Changing Dynamics of the Church Treasurer by Church Law & Tax (members only)
Church Law & Tax Executive Report quote
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