What is the cost of hiring a bookkeeper?

This eliminates the need for interviewing and taking a chance on an individual who might end up being poorly-equipped to handle key finance-related activities at a company. Another important factor for determining your rate is your expertise in various accounting software. Our article about the best small business accounting software reviews some of the top options on the market.

That way, there are no surprise fees, and clients know what to expect from you. If a client takes advantage of multiple services, charge accordingly. You may also want to increase pricing depending on what services are in demand and when they’re being taken advantage of (e.g., last-minute requests). So, don’t be afraid to boast about your experience while marketing your accounting firm. And, use it as a competitive advantage when it comes to pricing your offerings.

The Cost of Bookkeeping for Small Businesses

The first thing you need to do is determine your company’s needs. Just about every small business requires a basic form of bookkeeping in the beginning. In this initial stage of establishing your business, you will be primarily concerned with smaller responsibilities like recording transactions and paying bills. Otherwise, you may wind up missing out on profits or scaring off clients with high rates.

• For one-person businesses, a dedicated traditional bookkeeper might be overkill — not to mention unaffordable.
• As your business grows, you will need to focus more on detailed financial reporting and following state & federal regulations.
• According to BLS data from May 2021, the top 10% of bookkeepers earned median base salaries of $61,980 per year.
• And, based on the services you require, you’ll probably need at least 5-15 hours per month worth of bookkeeping.
• It can also cut down the amount of work a bookkeeper needs to do, with filing systems for receipts being online as the money is spent, instead of arriving all together at year end.
• The annual salary for full-time bookkeepers who perform other office duties can range from $35,000 to $60,000 plus benefits.

However, businesses need services that can also handle payroll and taxes. See if they can integrate with your current bookkeeping software. The lower end of the range typically includes basic bookkeeping for a small business that only requires five or so hours of work per month. If you can get away with that, part-time bookkeeping services can be much more affordable than a full-time bookkeeper working in house. Using outside firms to handle your bookkeeping is similar to hiring an in-house bookkeeper to handle basic bookkeeping responsibilities without the added overhead cost of carrying employees on your payroll.

Single Entry Bookkeeping and Double Entry Bookkeeping

Hiring a bookkeeper to maintain your financial records is a smart investment. If you are still wondering how much does a bookkeeper cost, explore your options. 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. While some months may not require much from a bookkeeper, others are inevitably going to be busier than others. This makes it easier to manage your business bookkeeper costs by factoring in a consistent monthly rate.

Rather than tracking how much does bookkeeping cost spent on individual activities, businesses are charged a fixed fee based on what kinds of services are being provided and how long, on average, they take. Between $250-2,000, depending upon the amount of transactions and the complexity of the work. If you’re a small business owner who is great with numbers, spreadsheets, and organization, doing your own bookkeeping may be an option. While this option can save you money—you don’t need to hire someone else—bookkeeping takes up valuable time. Recent reports estimate that small- and mid-sized businesses spend roughly 5% of their time on administrative tasks like bookkeeping and accounting. That might not seem like much, but that’s over 100 working hours a year that could be better spent on your business.

Signs You Need to Step Up Your Startup’s Bookkeeping

Bench assumes no liability for actions taken in reliance upon the information contained herein. And just because you can afford a bookkeeper, doesn’t mean you need to hire one. HMRC service levels have fallen to an “unacceptably low level” and must be urgently addressed as part of the forthcoming Spring Budget statement, the ... Jenny Baskerville, KPMG’s UK head of IDE, outlines the strategy that’s helped the firm beat the odds Read More... “It’s really important for everyone who runs a business to understand the finances around their business because how can they possibly make strategic decisions without understanding what’s going on?

• In general, bookkeeping refers to the function of maintaining basic financial tasks, like invoicing clients, paying vendor bills, recording and posting transactions, and reconciling accounts.
• A bookkeeper manages and records all of your business's financial transactions.
• Bookkeepers are in charge of maintaining your books closely day in and day out.
• This requires a more concerted effort and direct oversight by a qualified professional.
• The more experienced the bookkeeper, the more confident they are with their skills.
• After digging through the pricing tiers of a number of different bookkeeping service providers, we’ve found that the average range for small to medium businesses is $250 - $1,500 per month.
• Bench assumes no liability for actions taken in reliance upon the information contained herein.

Like a traditional firm, an online provider puts your books in expert hands, without requiring you to spend time on direct oversight. If you want to have your books handled by a professional with regular, predictable costs, consider working with an online provider. For businesses with more complex structures or more than a handful of monthly transactions, this can end up being significantly more cost-effective than the hourly-cost variance of a traditional firm. Part time bookkeepers will charge between $400 and $800 per month for basic bookkeeping, excluding the benefits. For full time services, expect to pay from $3,000 to $4,500 per month without the benefits.

Sample Bookkeeping Packages

The pricing on this may vary based on the complexity of the project, but you can expect it to fall in line with basic hourly rates. For clients with more than $1 million in revenue, it would be good to look at how much they would pay a full-time bookkeeper, sitting in their office, working 40 hours a week. As a contractor, you’ll be doing the work quicker because you won’t be dealing with all the office management, so it’s actually better for them to hire you part time than it is to hire a full-time employee. How much a bookkeeper costs also depends on the payment arrangement.