How Much Bookkeepers Charge

Hiring a full-time bookkeeper at 40 hours per week at a rate of $14 dollar per hour (the low end of the average hourly cost cited above) will cost you $560 total for the week. Hiring a part-time bookkeeper at 20 hours per week at a rate of $17 dollars an hour (the high end of the average hourly cost cited above) will cost you $340 total for the week. These services usually charge flat rates, which makes budgeting simple. Virtual bookkeepers are typically best for people who are just looking for a bookkeeper and don’t need full-service accounting help like payroll, budgeting, and forecasting. Although bookkeeping is a universally important corporate function, geographical circumstances also play a role. One region to another may have quite different hourly rates, services provided, and even approaches to bookkeeping.

You’ll save money on accounting fees

In a nutshell, a bookkeeper records your financial transactions and collects information to create general financial reports. Business owners can then use those financial reports to make better-informed financial decisions to boost the growth and profitability of a company. Smaller clients generate less revenue than medium or large clients. Therefore, you generally want to charge a small client less because they have fewer needs. At some point or another, you may have clients of all sizes—aka small, medium, and large clients.

Frequently Asked Questions

If you spend too much time on bookkeeping, it’s easier to hire an accountant for a small business to keep track of your financial records, financial statements, and other elements. Outsourcing bookkeeping is a good option when you could use a hand hiring a bookkeeper for keeping track of a part of your financial management. Average monthly fees for this type of activity include from $500 to $2,500. One of the main benefits of such an approach is that you can customize the services you want the bookkeeper to provide. Traditional firms often offer packages or tiered pricing structures depending on the size and complexity of the business. Monthly fees can range from a few hundred to several thousand dollars per month, with additional costs for specialized services such as tax preparation, financial analysis, or consulting.

• However, when talking about bookkeeper costs, it is important to note their differences.
• Hiring a full-time employee will, of course, be more expensive, so this option is best for businesses large enough to really need it.
• Plus, bookkeepers will ensure you’re in compliance with local and federal laws (which can ultimately save you money in the long run).
• We are life-long learners, passionate about teamwork and excellence in our respective roles, with a solution-oriented approach to challenges.
• The assessment will consist of gathering information that’ll help you determine the amount of time and level of complexity required to meet the client’s needs before you provide your quoted price.

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• Or simply send us an email at [email protected] and we’ll be glad to help.
• 58% of accountants said updating technology has improved efficiency and productivity, which is vital for creating space to add the services that clients demand.
• However, be aware that business size does affect a bookkeeper’s workload and may lead to you paying more or even for a second bookkeeper to alleviate some of that burden.
• So, you need to take your time when setting prices for your services.
• Get up and running with free payroll setup, and enjoy free expert support.

You know what they say—“You get what you pay for.” And, that saying holds true for bookkeeping services. Otherwise, you could wind up losing clients to other firms (and no bookkeeper wants that). what is a bookkeeper As great as it is to talk about potential bookkeeping costs and get estimates, we know that seeing an actual average for your state can yield excellent value for you as a business owner.

Jacob Dayan, Esq.

It’s important to note that the software you use may affect your rate, as some solutions are more expensive than others. Another important factor is your expertise in various accounting software. In general, good cloud-based software makes accounting easier and reduces the hours, allowing you to charge more per hour. A strong alternative to hourly billing is fixed-rate (or flat-fee). It means you set a fee for each service you offer and provide clients with a ‘menu’ of sorts, with corresponding prices.

Get live expertise

Pricing for online bookkeeping services is often based on a subscription model or flat monthly fee, with transparent pricing and no hidden costs. Another key benefit to outsourcing bookkeeping to a professional CPA firm is the level of expertise received. Small businesses and even mid-size companies don’t always hire the best talent to handle their daily and monthly bookkeeping responsibilities. Without significant prior experience in bookkeeping, it is impossible for a business owner to gauge the expertise level and capabilities of an in-house bookkeeper.

You’ll save your business by not burning out

The time you spend pouring over receipts and invoices could be much more valuable doing other things important to your business’s operations. Not to mention, if you want your business to grow and scale, you’ll need to let go of some of these tedious tasks, like balancing the books. When you do it yourself, you may miss things or make costly errors.

While this makes it easier to control your bookkeeping costs, most small businesses require consistent services to keep their books straight. Now, you may have an accountant that also completes the tasks of a bookkeeper, but not the other way around. Accountants must meet specific education and certification requirements that vary slightly by state. In general, accountants usually need a bachelor’s degree in accounting and pass a CPA exam in their state. However, when talking about bookkeeper costs, it is important to note their differences. For one, a bookkeeper is generally cheaper than an accountant, because they have different functions, expertise, and qualifications.

• Just about every small business requires a basic form of bookkeeping in the beginning.
• Additionally, a bookkeeper may work with an accountant, who is responsible for more advanced tasks such as assessing the health of a business or generating financial statements.
• Many of the operations are automated in the software, making it easy to get accurate debits and credits entered.
• The time you spend pouring over receipts and invoices could be much more valuable doing other things important to your business’s operations.
• To be exceptional at these tasks, accountants must complete years of training and earn special certifications, which their salaries reflect.
• An online bookkeeping business has likely automated most of the services you require and they can have a team of experts at the ready if you are in need of help.