7 Signs Your Books Are Behind (And What a Backlog Cleanup Involves)
AUDIT Basic and Diluted EPS Under Ind AS 33 How to Calculate, Adjust and Disclose Numerator adjustments · Weighted average shares · Treasury share method Mumbai · Navi Mumbai · Vashi · August 2026 ₹18.04 Worked example — basic EPS ₹16.04 Worked example — diluted EPS 6 steps To calculate diluted EPS RULES THAT DECIDE THE FIGURE CUMULATIVE PREFERENCE DIVIDENDS Deducted even if never declared Numerator BONUS ISSUE EPS ADJUSTMENT Restated retrospectively, not time-weighted Denominator TREASURY SHARE METHOD Applies to options and warrants Diluted EPS ANTIDILUTIVE INSTRUMENTS ARE ALWAYS EXCLUDED NDS Advisors · Chartered Accountants · Mumbai · Navi Mumbai · Vashi AUDIT · AUGUST 2026 ⚠ Paragraph 64 of Ind AS 33 makes retrospective restatement mandatory. A bonus issue, share split or share consolidation after the reporting date but before the financial statements are approved for issue still requires basic and diluted EPS for every period presented to be restated. Confirm the current position before acting on any figure below. Basic and diluted EPS under Ind AS 33 are calculated by dividing profit attributable to ordinary equity holders of the parent by the weighted average number of equity shares outstanding, with diluted EPS adding back the earnings effect and the share effect of every dilutive potential equity share. The two figures answer different questions. Basic EPS measures what each share earned on the capital actually in issue. Diluted EPS answers a harder question: what would each share have earned if every convertible instrument, option and warrant already outstanding had been exercised? The formula is short. The judgement sits in the adjustments. Preference dividends that were never declared still reduce the numerator. A bonus issue restates prior years that were already audited. Employee stock options only count when they are in the money. Getting the figure wrong is one of the most common causes of restatement in Indian financial statements, because the number sits on the face of the profit and loss account where every analyst reads it first. Key Takeaways Cumulative preference dividends reduce the numerator whether or not they were declared — non-cumulative dividends only if declared. A bonus issue is restated retrospectively across every period presented, not time-weighted like a fresh issue for cash. Options and warrants only dilute through the treasury share method — and only when the exercise price sits below the average market price for the period. Antidilutive instruments are always excluded from diluted EPS, even though they must still be disclosed in the notes. Schedule III makes EPS wider than the standard’s own scope test — every Ind AS company presents it, listed or not. What Is Earnings Per Share and Why Does Ind AS 33 Require It? Earnings per share is the portion of an entity’s profit attributable to each equity share outstanding during a reporting period. Ind AS 33, Earnings per Share, prescribes how it is measured and presented so the figure means the same thing across companies and periods. The Ind AS 33 earnings per share requirement is about comparability before computation: without a common denominator rule, two identical businesses could report materially different EPS simply by counting shares differently. Anyone asking what is earnings per share in a reporting context is really asking about comparability. Ind AS 33 standardises the denominator rather than defining profit. It takes profit as the other standards measure it and concentrates on which shares count, for how much of the year, and which potential shares must be assumed into existence. That is why the EPS calculation under Ind AS 33 becomes mechanical once share movements are mapped correctly. Which Companies Must Report Basic and Diluted EPS Under Ind AS 33? Ind AS 33 applicability starts with a scope test: the standard applies to entities whose ordinary shares or potential ordinary shares are publicly traded, and to entities in the process of issuing shares in a public market. Where an entity presents both consolidated and separate financial statements, the EPS information required by the standard is presented in the consolidated statements. In practice Ind AS 33 applicability is wider than that scope test suggests. Division II of Schedule III to the Companies Act, 2013 requires earnings per equity share, basic and diluted, on the face of the statement of profit and loss for every company preparing Ind AS financial statements. So an unlisted company inside the roadmap presents EPS even though the standard’s own scope paragraph would not compel it. The roadmap is set by the Companies (Indian Accounting Standards) Rules, 2015. Phase I covered listed and unlisted companies with net worth of ₹500 crore or more from FY 2016-17. Phase II added all remaining listed companies other than those on SME exchanges, and unlisted companies with net worth of ₹250 crore or more, from FY 2017-18, together with their holding, subsidiary, joint venture and associate entities. Companies outside the roadmap apply AS 20 under the Companies (Accounting Standards) Rules, 2021. Plan a conversion to Ind AS before the year you are caught, not during it. How Do You Calculate Basic EPS Under Ind AS 33? The basic EPS formula divides profit or loss attributable to ordinary equity holders of the parent entity by the weighted average number of shares outstanding during the period. Both halves of that basic EPS formula need work before the division makes sense, and this is where the EPS calculation under Ind AS 33 stops being arithmetic. On the numerator, start with profit or loss from continuing operations attributable to the parent, then deduct the after-tax amount of preference dividends. The distinction that catches teams out is between cumulative and non-cumulative preference shares. For cumulative preference shares the dividend for the period is deducted whether or not it has been declared. For non-cumulative shares it is deducted only if declared. Any excess paid on settlement or repurchase of preference shares is also deducted. 📋 An India-specific rule with no equivalent in IAS 33. Where an item of income or expense that would otherwise go through profit or loss is
Outsourced Bookkeeping Cost vs Hiring an In-House Bookkeeper in the US
Outsourced Bookkeeping Cost vs Hiring an In-House Bookkeeper in the US Outsourced bookkeeping cost for a US small business typically ranges from $500 to $2,500 per month, while hiring a full-time in-house bookkeeper costs $65,000 to $85,000 per year when salary, payroll taxes, benefits, software, and overhead are factored together. That is the core of the outsourced bookkeeping vs in-house bookkeeper comparison — and for most small and mid-sized businesses, the math strongly favors outsourcing. The reason is not simply that outsourced providers charge less per hour. The reason is that a full-time in-house hire comes with a layer of hidden costs — employer payroll taxes, health insurance contributions, paid time off, recruitment expenses, training time, software licences, and workspace — that inflate the true cost of employment 30% to 50% above the base salary. An outsourced bookkeeping engagement bundles all of these costs into a single, predictable monthly fee with no surprises. Beyond Books provides outsourced bookkeeping services to US businesses across industries, and this article breaks down every component of the cost comparison so you can make the right decision for your business. Annual cost, side by side In-house bookkeeper, fully loaded $75,795 Outsourced bookkeeping, all inclusive $14,400 You keep $61,39581% less Based on a US small business with $1m–$5m revenue and 200–500 monthly transactions. Full workings below. On this page What Is the True Cost of Hiring an In-House Bookkeeper in the US? How Much Does Outsourced Bookkeeping Cost in the US? How Has the Bookkeeping Labor Market in the US Changed Over the Past Three Decades? What Does the Side-by-Side Cost Comparison Look Like for a Typical US Small Business? What Are the Steps to Transition from an In-House Bookkeeper to Outsourced Bookkeeping? When Does Hiring an In-House Bookkeeper Make More Sense Than Outsourcing? Frequently Asked Questions About Outsourced Bookkeeping Costs What Is the True Cost of Hiring an In-House Bookkeeper in the US? The cost of hiring a bookkeeper in the US starts with the base salary but extends far beyond it. Business owners who compare only the salary figure to an outsourced bookkeeping quote are working with incomplete numbers — and the gap between the two options is much larger than it appears at first glance. Base Salary: According to the Bureau of Labor Statistics (BLS), the median annual wage for bookkeeping, accounting, and auditing clerks in the United States is approximately $47,440 as of the most recent data. However, this national median masks significant regional variation. In high-cost markets like New York City, San Francisco, Los Angeles, Boston, and Seattle, an experienced bookkeeper commands $55,000 to $70,000 or more. In mid-tier markets like Denver, Austin, Nashville, and Charlotte, the range is $45,000 to $58,000. Even in lower-cost markets, a competent bookkeeper with QuickBooks or Xero proficiency and five or more years of experience rarely accepts less than $42,000. The in-house bookkeeper salary US figure you budget must reflect your local market, not the national median. Employer Payroll Taxes: On top of the base salary, every US employer pays mandatory payroll taxes: 6.2% for the employer’s share of Social Security (on wages up to the Social Security wage base, which is $176,100 for 2026), 1.45% for the employer’s share of Medicare (no wage cap), Federal Unemployment Tax (FUTA) at 0.6% on the first $7,000 of wages, and State Unemployment Tax (SUTA) at rates varying from 0.5% to 5.4% depending on your state and experience rating. Combined, employer payroll taxes add approximately 8% to 10% to the base salary — an additional $3,800 to $5,500 per year on a $50,000 salary. Health Insurance and Benefits: If you offer health insurance — and most businesses with more than a handful of employees must under the ACA employer mandate — the employer’s contribution typically ranges from $6,000 to $15,000 per year per employee, depending on the plan type (HMO, PPO, HDHP) and whether you cover individual or family coverage. Add dental and vision at $1,000 to $2,000 per year. If you offer a 401(k) with employer match, budget an additional 3% to 6% of salary ($1,500 to $3,000). Paid time off (vacation, sick days, holidays) — typically 15 to 25 days per year — represents a further 6% to 10% of salary in wages paid for time not worked. Software, Equipment, and Workspace: An in-house bookkeeper needs a computer ($800 to $1,500), a QuickBooks Online or Xero subscription ($30 to $200 per month), potentially a dedicated desk or office space (a share of your rent, utilities, and office insurance), and access to add-on tools like bill payment platforms, receipt scanning software, and payroll systems. These costs range from $2,000 to $6,000 per year depending on your setup. Recruitment and Training: Hiring a bookkeeper involves job postings ($200 to $500 per platform), screening and interviewing (your time or a recruiter’s fee, which runs 15% to 25% of first-year salary for staffing agencies), background checks ($30 to $100), and two to four weeks of onboarding during which the new hire is learning your systems and processes rather than producing at full capacity. If the hire does not work out — and turnover in bookkeeping roles is higher than many business owners expect — the cycle repeats, doubling the recruitment cost. The Total: When you add all of these components together, the true annual cost of an in-house bookkeeper in the US is not the $47,000 base salary — it is $65,000 to $85,000 per year, and in high-cost markets, it reaches $90,000 to $100,000 for an experienced full-charge bookkeeper. This is the number that must be compared to the outsourced bookkeeping cost to make an honest evaluation. How Much Does Outsourced Bookkeeping Cost in the US? Outsourced bookkeeping cost in the US varies based on the pricing model, the volume and complexity of your transactions, and the scope of services included. Understanding the different bookkeeping outsourcing pricing models helps you compare quotes accurately and avoid surprises. Fixed Monthly Fee (Most Common) The majority of professional outsourced bookkeeping firms,
