Understanding Cost of Goods Sold COGS

It does not include the electric bill to run an oven, packages for the bread, or anything the customer doesn’t need to enjoy the product. CoGS don’t include any part of the upkeep it takes to maintain the space where customers will find and buy an item. As a result, these are all expenses that contribute to the end cost of the product. During times of inflation, LIFO leads to a higher reported COGS on your financial statements and lower taxable income.

  • For instance, a high COGS can start to eat into your profit margins and make sustainable growth difficult.
  • While COGS is a very useful metric to look at, it can’t do everything.
  • Calculating your COGS helps you deduct those costs from the product you sell.
  • By being strategic about how you handle shipping costs, you can reduce your overall expenses and improve profitability without sacrificing quality or customer satisfaction.
  • These will usually be related to labor and operational costs necessary to get products into the hands of customers, said Turner.

The cost is also important, as it impacts the tax details of a business’s expenses. In more detail, CoGS are the ingredients and materials that cost a business to provide it. Operating expenses and cost of goods sold are two different expenses that occur in your daily business operations.

It’s important for businesses to accurately determine which costs are eligible for inclusion in COGS in order to properly calculate profits and taxes owed. Consulting with an accountant or financial advisor may help clarify any confusion surrounding these calculations. Interestingly, employee payroll can be classified as either type of expense, depending on the specific type of labor involved.

What Is Cost of Goods Sold (COGS)?

The two main benefits of setting up a business are to solve customers’ needs and make a profit. In as much as business owners seek to create products or offer services that provide innovative solutions to their customer’s problems, they also want to make money while doing that. Calculating your COGS is essential for determining your gross profit margin, which is what’s left over after deducting COGS from your revenue.

  • Further, this method is typically used in industries that sell unique items like cars, real estate, and rare and precious jewels.
  • Let’s chat with marketing regarding new campaigns and with supply chain to ensure we can handle the added shipping volume without excessive delays in light of the pandemic.
  • At the end of the year, on December 31, 2022, your ending inventory is $6,000.
  • ShipBob’s inventory management software provides ecommerce merchants with visibility into key data and powerful analytics through the ShipBob dashboard.
  • For e-commerce companies, both revenue and COGS must be recognized when the product has shipped.

The answer to this question is not straightforward, as it depends on the specific circumstances. That cost does not contribute to the manufacturing of the business’ product, so it is not part of COGS. Cost of goods sold (COGS) includes any expenditure that was necessary for the manufacture of a product sold by a company. It is solely made up of direct costs and can reduce a company’s tax liability. While our 40% margin is standard for our industry, our competitors are outperforming us with 50%+ margins on similar products.

How do you calculate the COGS?

In addition to COGS, there are a few other formulas businesses will need to use to understand their overall profitability and business health. Since this method isn’t affected by net burn vs gross burn: burn rate guide for startups purchase or production date, the COGS is less likely to be impacted by cost fluctuations. While “cost of goods sold” and “cost of sales” sound similar, they are different things.

What is cost of goods sold?

Operating expenses are a much larger bucket, said Hillary Senko Cullum, a wholesale and retail consultant operating at HSC Advisors. Clover Reporting and other inventory management apps, like SKU IQ, can make it easy to pull these numbers right from your retail POS system and feed them into the COGS formula. To calculate your cost of goods sold, use our calculator below.

Whenever you pay for shipping out to your customer, this is not included in COGS but is a monthly expense. This expense of shipping to the customer is directly related to the sale of the product, so we include it in the Cost of Sales section and include it in the gross profit calculation. Brands with brick-and-mortar stores will usually have additional expenses which will need to be included in their total COGS. These will usually be related to labor and operational costs necessary to get products into the hands of customers, said Turner. A company must shrewdly budget for its operating expenses while maintaining its competitive edge. After all, these costs are incurred regardless of sales figures.


Cost of goods sold includes any direct costs that a business incurs in the manufacture, purchase and sale or resale of products. She buys machines A and B for 10 each, and later buys machines C and D for 12 each. Under specific identification, the cost of goods sold is 10 + 12, the particular costs of machines A and C. If she uses average cost, her costs are 22 ( (10+10+12+12)/4 x 2). Thus, her profit for accounting and tax purposes may be 20, 18, or 16, depending on her inventory method.

Information Needed to Calculate Cost of Goods Sold

In other words, the newest inventory is the first to leave the warehouse and get shipped to the customer. FIFO, or the “first-in-first-out” method, assumes that the first goods that are purchased or produced are the first to be sold. In other words, the oldest inventory is the first to leave the warehouse and get shipped to the customer. In all these scenarios, your financials will not accurately reflect your financial reality, and may result in under-reporting of your COGS. This means that your gross profit margin recorded will be higher than your actual profit, inflating your net income. Another limitation of COGS is that it’s relatively easy for unscrupulous accountants and managers to manipulate.

A business’s cost of goods sold can also shine a light on areas where it can cut back to make more profit. You might be surprised to find that you’re making less profit than you expected with certain products. By analyzing the cost of goods sold for certain products, you can change vendors to order cheaper materials or raise your prices to increase your profit.

This information can help you make better decisions on investments – whether you need to invest more in your operations or improve the way you manage your inventory. Reducing your cost of goods sold should be an ongoing process rather than a one-time endeavor as it helps you stay competitive while increasing profits over time. When it comes to lowering your cost of goods sold and reducing shipping expenses, there are several strategies you can try. For example, you could negotiate better rates with carriers or find ways to consolidate shipments so that each individual shipment is less expensive. If the company is paying the supplier for shipping, even when they forward that cost on to the member, it is still part of the COGS because the company does, in fact, incur a cost.

When prices are rising, the goods with higher costs are sold first and the closing inventory will be higher. First in, first out, also known as FIFO, is an assessment management method where assets produced or purchased first are sold first. This method is best for perishables and products with a short shelf life. Any property held by a business may decline in value or be damaged by unusual events, such as a fire. The loss of value where the goods are destroyed is accounted for as a loss, and the inventory is fully written off. Generally, such loss is recognized for both financial reporting and tax purposes.

When those raw materials are shipped to the place of business, even a home, the shipping costs count toward COGS. Examples of what can be listed as COGS include the cost of materials, labor, and the wholesale price of goods that are resold, such as in grocery stores, overhead, and storage. Any business supplies not used directly for manufacturing a product are not included in COGS. An important distinction to note is the difference between COGS and operating expenses (commonly referred to as OpEx). In the Zappos example, while the factory machinery is part of COGS, the electricity, factory supervisor’s salary, and rent are not.

What is Cost Variance?

Instead of playing the guessing game with expenses, you can use the WBS to identify costs line by line. A work breakdown structure (WBS) is just what it says it is — it is a breakdown of everything you need to do for the project to complete it. We use the second formula for what-if analysis when the original budget is no longer viable, e.g., when we’re already over budget. You decide to check how the project is doing financially at the end of day 17.

  • Understanding a projects cost variance enables a company to gauge project performance during the course of a project.
  • Cost Variance represents how far the project is over or under budget relative to the work performed.
  • While the first month’s cost
    variance was positive (i.e. the earned value exceeded the actual cost), it
    turned eventually negative in the 2nd month.
  • Actual cost, however, relates to the actual costs of the accomplished work.

He is also the technical brains behind ProjectEngineer, the online project management system for engineers. He is a licensed professional engineer, certified project manager, and six sigma black belt. The overall project cost variance is negative $100, therefore the project is over budget. The first task is over budget, and the second task is under budget but not enough to make up the shortfall.

Use the Schedule Performance Index to Check

While this was a straight forward cost variance analysis, some of them aren’t so easy. The cost of the steel used was $460 per ton, versus an expected $500 per ton, and ABC used a total of 500 tons. The price variance is the difference between the actual versus expected price of whatever is being measured, multiplied by the standard number of units. The project winds up taking about 10 weeks longer than you originally anticipated, and the graphic designer logged 1,600 hours in total.

Thankfully, there are cost management tools that make keeping your eye on variances effortless so that you don’t have to manually crunch the numbers. Such cost developments are not unusual
given that projects and teams may require some ‘settling in’ time before they can
leverage their full performance potential. This
formula needs to be adapted for the different types of cost variances. While
the basic calculation – the difference of EV and AC – is basically the same,
the input parameters are replaced as follows. For
instance, if you are in month 4 of a project, you would calculate the
point-in-time cost variance of that period by using the actual cost (AC) and
earned value (EV) of the 4th month only.

After all, all of these project-based companies are running business which need to make profits, and predictable and well formulated cost variances  increase the chances that every project will turn a profit. No matter what your cost variance calculator looks like, the cost variance formula will be one which you use and lean on for projects all of the time. Similarly to the result we got from the cost variance formula, our schedule variance has spat out a negative number, which means we are also behind the schedule. Understanding a projects cost variance enables a company to gauge project performance during the course of a project. Estimating the project budget at the beginning of the project and then seeing where the costs landed at the end of the project is a great way to blow a budget. A cost variance can relate to virtually any kind of expense, ranging from elements of the cost of goods sold to selling or administrative expenses.

This could mean that you’re spending too much or that your projected revenues are too low. If you have an adverse cost variance, then it’s time to do some deeper digging. Analyze where your numbers differ between your projections and reality. If the result is a negative number, you are overspending and have spent more than what was expected at this point in the project.

If you have Budgeted cost or Earned value along with the actual cost, you can project the cost of the project after its completion. After you are completed with the project, comparing the budget with the actuals can be of huge importance. Cost Variance is a simple concept and can be used to avoid cost overruns while managing a project.

What is the cost variance formula?

The designer is responsible for creating marketing materials, website design, and other visual assets at a rate of $50/hour. If you expect the entire project to be finished in two months—or 1,200 work hours—you should budget $60,000 for this project. Calculating cost variance requires project management software robust enough to calculate and organize your data in real time.

The cost variance formula is a helpful way to keep track of a project’s progress and ensure that costs remain within budget throughout the duration of a project. In this article, we’ll explain the cost variance formula, wave review 2021 different cost variance calculation methods, and provide examples of cost variance in action below. Throughout the life of a project, you’ll want to have each of these cost variance formulas at your disposal.

Cost variance analysis definition

The volume and price variances have different names, depending upon the type of expenditure being examined. For example, the volume and price variances for direct materials are the material yield variance and the purchase price variance. Or, the volume and price variances for direct labor are the labor efficiency variance and the labor rate variance.

Example of Cost Variance Analysis

Our team of reviewers are established professionals with decades of experience in areas of personal finance and hold many advanced degrees and certifications. A once-in-a-while variance of $1,000 may not be as significant as a $500 variation that recurs frequently. Historical data can be data from a similar project or the project you are currently working on.

As these variances are often used together with the cost-performance index (CPI) – you will find more details in the corresponding example in this CPI article. Note that the input numbers in the CPI article are consistent with these examples. There are often two causes for cost variance to either increase or decrease rather than staying constant at zero. Overestimation or underestimation of the expected value of an outcome is one potential source of cost variation. Cost variations can also be caused by circumstances beyond the company’s control, such as shifts in the market. Unpredictable price differences may result from several different factors.

Rent, property taxes, and subscriptions are all examples of fixed overhead costs. The calculation for sales variance is budgeted sales minus actual sales. This is the only type of variance on the list that is good when it is negative. If your budgeted (or expected) sales total was $1,000 and your actual sales total was $2,000, then your sales variance is -$1,000. When actual sales exceed budgeted sales, your variance will be negative—but your profits will be positive.

What is scrap value?

Consistent use and a variety of variables result in a continual breakdown. The organisation’s efficacy is also influenced by its general expenditures. As a result of these factors, enterprises must make the asset cost-effective. The scrap value of an asset differs based on the method of depreciation a company adopts. After acquiring all this information, it is still recommended to ask for an itemized break-up of the car’s condition. Once you have a quote, carry out the proceedings firmly without letting the scrap yard dodge its word.

Organizations usually dispose of these physical assets such as machinery, furniture, vehicles once the asset exhausts its useful life. A portion of these resources/assets, notwithstanding, may have a leftover worth. The organizations would then be able to hope to sell the resource at this remaining worth called Scrap Value. Choose Scrap Metal Buyers, and you can be confident that you are receiving the highest value for your materials. We pride ourselves on our exceptional customer service and strive to make the process as seamless as possible. Contact us today to learn more about our scrap metal recycling services and how we can help you transform your scrap into cash at our scrap yard.

  • As a result of these factors, enterprises must make the asset cost-effective.
  • The value of a physical object’s various components when the item itself is judged no longer usable is referred to as scrap value.
  • The scrap value of an asset differs based on the method of depreciation a company adopts.
  • The amount reflected in the account book after depreciation is referred to as the book value.

Iron is world’s most produced metal and has defined much of the industrial age. It makes up 90% of the metal produce on the planet and it is easy to see why. It does not have a high price so it is not the most desirable metal for buy and selling scrap however it is so common that it is always worth looking out for. As it so common it can be found anywhere some of the best sources are old vehicles and machine tooling. Follow along to keep track of current scrap prices, market movements, and tips to make more money. If you obtain numerous quotations for your automobile from scrap yards, you can compare them to see if you’re receiving the best possible scrap value.

Scrap Silver Value Based on Current Silver Price

Report your local scrap metal prices right the app with ease by uploading your receipt. Current market trends can have a significant impact on scrap metal prices. For example, the emergence of electric vehicles and renewable energy sources has led to increased demand for metals such as copper and lithium, resulting in higher prices.

  • As such, an asset’s estimated salvage value is an important component in the calculation of a depreciation schedule.
  • The value depends on how long the company expects to use the asset and how hard the asset is used.
  • Gauging scrap value holds significance for a company as it helps it to sort its yearly depreciation cost.
  • The organisations would then be free to sell the material for the residual value, known as scrap value.
  • Salvage value is the amount for which the asset can be sold at the end of its useful life.

Aluminum Scrap can be found in many different places, from gutters, to siding, to household items, and soda cans. It can also be found in cast and sheet Aluminum Scrap items, such as machine equipment, engines, and more. Salvage value is the book value of an asset after all depreciation has been fully expensed.

The price that he has purchased is called the value of salvage and is called the value of the sale. The property’s value in a short period of time may be greater than its current worth or price. There are many different types of values that are utilized when estimating and costing a product.

Everything to Run Your Business

With so many scrap yards out there you can use the iScrap App to find out what scrap yards in your area are paying for all types of brass. The concept can also be applied to the residual materials that are left over after a production process. For example, there is scrap metal left over after pieces are cut from a sheet of steel.

Adam received his master’s in economics from The New School for Social Research and his Ph.D. from the University of Wisconsin-Madison in sociology. He is a CFA charterholder as well as holding FINRA Series 7, 55 & 63 licenses. He currently researches and teaches economic sociology and the social studies of finance at the Hebrew University in Jerusalem.

Current Metal Prices

The salvage value of an asset is based on what a company expects to receive in exchange for selling or parting out the asset at the end of its useful life. Scrap value can also be referred to as residual value, salvage value, or break-up value. The scrap value of a fixed asset is the anticipated cost that it may be sold for after full depreciation. While the former may offer a broad overview of trends, the latter is critical to making informed, profitable decisions. Learn below how the iScrap App empowers scrappers with accurate, localized data.

Facts You Should Know Before Scrapping Your Car

Understanding how scrap metal prices are determined is essential for anyone involved in the scrap industry, from individual collectors to large-scale recycling facilities. The iScrap App goes beyond copper price charts; it also helps scrappers identify and connect with local scrap yards. This not only saves time but also provides invaluable local insights.

The stable value of the asset at the end of its life cycle is known as scrap value or salvage value. Tangible resources exist at the end of their useful lives, and, of course, they still have some worth. Some plant assets could be worth a few lakhs to a few crores in scrap value. However, it only accounts for a small portion of the total value of the fixed asset.


These scrap prices are for reference only based on market trends and resources. Download our app for free and get instant access to all National Scrap Prices and market trends. By using the iScrap App, you will receive notifications when the market is moving, and it’s time to either HOLD or SELL.

Scrap value in the subject of machinery is metallic or disassembled pieces. In most cases, the scraping value is around 10% of the entire building cost. Often, the demand and supply of the scrap materials determine the scrap value.

As a result, salvage value is included in the depreciation computation. The value of a physical object’s various components when the item itself is judged no longer usable is referred to as scrap value. After a long-term asset, such as how much do bookkeeping services for small businesses cost machinery, a car, or furniture, has served its purpose, it may be disposed of. The value of decommissioned materials at the end of the usefulness life of the property is completely meaningless, with the exception of sales as scrap.

The above examples should make it easy for anyone aspiring to learn how to calculate the scrap value of an asset, especially with the help of some examples. Value Engineering is an intentional and explicit collection of methods aimed at searching for optimal value for initial and long-term investments. Every construction project’s ultimate objective is to be on scope, on budget, and on schedule. This necessitates a collaborative and expert independent evaluation of all aspects of the building process. In construction projects, value engineering is utilized to offer a clear and thorough analysis of how to effectively fulfil the project’s goals.

Normal Balance of Accounts: Definition and Examples

normal debit balance

Instead, it signifies whether an increase in a particular account is recorded as a debit or a credit. A ‘debit’ entry is typically made on the left side of an account, while a ‘credit’ entry is recorded on the right. The monthly accounting close process for a nonprofit organization involves a series of steps to ensure accurate and up-to-date financial records. The rest of the accounts to the right of the Beginning Equity amount, are either going to increase or decrease owner’s equity.

normal debit balance

Information presented below walks through specific accounting terminology, debit and credit, as well as what are considered normal balances for IU. The debit balance, in a margin account, is the amount of money owed by the customer to the broker (or another lender) for funds advanced to purchase securities. The debit Law Firms and Client Trust Accounts balance is the amount of funds that the customer must put into their margin account, following the successful execution of a security purchase order, to properly settle the transaction. Revenue is the income that a company earns from its business activities, typically from the sale of goods and services to customers.

Normal Balance

A contra asset’s debit is the opposite of a normal account’s debit, which increases the asset. Temporary accounts (or nominal accounts) include all of the revenue accounts, expense https://adprun.net/affordable-startup-bookkeeping-and-accounting/ accounts, the owner’s drawing account, and the income summary account. Generally speaking, the balances in temporary accounts increase throughout the accounting year.

  • With NetSuite, you go live in a predictable timeframe — smart, stepped implementations begin with sales and span the entire customer lifecycle, so there’s continuity from sales to services to support.
  • A debit balance is a negative cash balance in a checking account with a bank.
  • Revenue is the income that a company earns from its business activities, typically from the sale of goods and services to customers.
  • Temporary accounts (or nominal accounts) include all of the revenue accounts, expense accounts, the owner’s drawing account, and the income summary account.
  • In this case, the purchaser issues a debit note reflecting the accounting transaction.

Chartered accountant Michael Brown is the founder and CEO of Double Entry Bookkeeping. He has worked as an accountant and consultant for more than 25 years and has built financial models for all types of industries. He has been the CFO or controller of both small and medium sized companies and has run small businesses of his own. He has been a manager and an auditor with Deloitte, a big 4 accountancy firm, and holds a degree from Loughborough University. When buying on margin, investors borrow funds from a broker and then combine those funds with their own in order to purchase a greater number of shares and, if all goes well, earn a greater profit.

Contra Accounts

Each of the accounts in a trial balance extracted from the bookkeeping ledgers will either show a debit or a credit balance. The normal balance of any account is the balance (debit or credit) which you would expect the account have, and is governed by the accounting equation. Normal accounting balances are an essential part of the ledger. In the general ledger, accounting entries go on the left or right. The left represents the debits in that account, while the right gets the credit transactions.

normal debit balance

At the end of the accounting year the balances will be transferred to the owner’s capital account or to a corporation’s retained earnings account. Whenever cash is received, the asset account Cash is debited and another account will need to be credited. Since the service was performed at the same time as the cash was received, the revenue account Service Revenues is credited, thus increasing its account balance. It’s essentially what’s left over when you subtract liabilities from assets. When owners invest more into the business, you credit the equity account, hence, it has a normal credit balance. This standard discusses fundamental concepts as they relate to recordkeeping for accounting and how transactions are recorded internally within Indiana University.

What does Normal Account Balance mean?

This definition applies to accounting, where these balances appear on the balance sheet. In banking, account balance refers to the total money an account holder has in their bank account. It can also refer to their total assets after deducting their liabilities. That can happen when a security purchased on margin falls in value.

  • This transaction will require a journal entry that includes an expense account and a cash account.
  • The same entry will credit its liability account Notes Payable for $10,000 since that account balance is also increasing.
  • This chart is useful as a quick reference to determine whether an increase or decrease in a particular type of account should be recorded as a debit or a credit.
  • The double-entry system requires that the general ledger account balances have the total of the debit balances equal to the total of the credit balances.

Bookkeeper360 Review: Pricing, Features, and Top Alternatives

bookkeeper360 reviews

Bookkeeper360 has an A+ rating from the Better Business Bureau and no listed customer complaints. For technology integration and assistance, the Bookkeeper360 website states that once available, the 360app will be included in all service packages. Other custom integrations are priced per project, and you have to work with the Bookkeeper360 team directly to determine this cost. When it comes to its payroll services, on the other hand, Bookkeeper360 bases pricing on the number of employees you have. If you have one employee, it will cost $45 per month; if you have 20 employees, it will cost $159 per month. Bookkeeper360 provides a sliding scale tool on its website for this cost.

Trends show you business revenues, direct costs, and operating expenses along its composition. This section of Bookkeeper360 can provide you with insights regarding composition of revenues and cost behavior. bookkeeper360 reviews If you want a more detailed view of business performance, you can switch to the Metrics view to year-over-year data for revenue and common size amounts for gross profit, net income, and payroll.

What kind of services do bookkeeping services provide?

Our team-based approach ensures that you get the knowledge and expertise you need on your accounting team. Danielle Bauter is a writer for the Accounting division of Fit Small Business. She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about travel, food, and books for various lifestyle publications.

Ignite Spot Accounting is best for businesses that want bookkeepers who are certified in popular bookkeeping programs. The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence. We use product data, strategic methodologies and expert insights to inform all of our content and guide you in making the best decisions for your business journey. Bookkeeper360 is best suited for smaller companies that use Xero or are looking for an alternative to QuickBooks. They work with small-to-medium businesses and strive to innovate the way they maintain their accounting to fuel overall growth of the business.

What’s the Best Online Bookkeeping Service on the Market?

Bookkeeper360 pricing scored low in our evaluation because it’s quite expensive compared to competitors, and we believe that very small businesses with limited budgets might find its services expensive. It offers several solutions for business owners and, because of the prices of its different services, the total cost will vary. Bookkeeper360 offers a range of support options for businesses https://www.bookstime.com/ in conjunction with its core bookkeeping services. Reviews for both the business and the app are consistently high. Customers report satisfaction with services rendered, and overall excellent customer service. Aside from tax, the Bookkeeper360 team will work with you to analyze your financials and determine a strategy to manage and grow your business through the CFO advisory program.

  • Like with its virtual bookkeeping services, the CFO Advisory support Bookkeeper360 offers is available in three different plans, as well as on a custom-package basis.
  • The payroll team will process payroll for both employees and contractors and provide full-service support with health benefits, direct deposit setup, W-2s, and 1099s.
  • Moreover, costs arising from Scooby Snacks can be a mixed cost because it has fixed and variable components.
  • This separate service includes capital management and business coaching.
  • Our bookkeepers work directly with our tax pros, CPAs, and CFOs.

If you’re planning to expand your business but need additional capital, the CFO will help you forecast the business’s financials, craft business plans, and determine the optimal capital structure. In cost and management accounting, operating expenses are mostly fixed costs and this cost behavior is evident in the sample chart above. You can use this chart to analyze the behavior of your business’ operating expenses. It isn’t in all cases that operating expenses are fixed and the chart from Bookkeeper360 can reveal fluctuations in expenses.

Bookkeeper360 Alternatives

For pricing, we considered whether a service offers a free trial or a free version of its software as well as the affordability of its lowest and highest price tiers. Gone are the days of needing to painstakingly enter all financial information into either paper or online sheets for your business. For HR solutions, the HRS360 app can be purchased monthly or annually, at $15 per month or $150 per year. If you’re interested in HR projects or consulting, prices for these services start at $1,000 for projects and $350 per month for consulting.

When you work with Ignite Spot Accounting, you’ll get bookkeepers certified in a variety of popular programs, such as QuickBooks and TSheets. If you choose its chief financial officer (CFO) services, your CFO will be a certified public accountant (CPA) at a minimum. Its features include automation of tasks, Gusto payroll processing, balance sheet production, income statements, accuracy checks and transaction databases. The three subscription plans for core bookkeeping services are listed below. Any services beyond bookkeeping, such as payroll, human resources (HR), taxes, or keeping your books up-to-date, are available at an additional cost.