Some bookkeepers may have a minimum number of hours they require per month or other contractual obligations. If you need extra services like tax preparation or payroll management, this could also result in additional fees. It can also provide transparency and peace of mind, as there are no surprise charges or hidden fees. And if you decide to hire a bookkeeper, how much can you expect to pay?
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- On average, a bookkeeping firm will charge anywhere between $300 to $2,000 per month depending on the amount and complexity of work required.
- Although not a crucial factor, it’s important to ensure the bookkeeper has experience working with software that you find convenient.
- If you’ve been working in the industry for 10 years, for example, you’ll have the client base, referrals, references, and body of work to quote a higher rate.
- A lot of newly-launched businesses choose to do bookkeeping themselves in the early stages, which is a cost-conscientious decision.
Different industries also require different services, which can affect the overall cost. It’s also important to make sure they have experience in accounting software you use. Go for professionals who have already worked with similar businesses. As a result, they come with a higher monthly cost for business owners. The more experienced the bookkeeper, the more confident they are with their skills. Having the proper education and experience is crucial, but it’s not the most important factor in determining the price of the service.
Bookkeeping vs Accounting
When you choose our dedicated virtual receptionists to handle your business communications and more, we’ll be there for everything, every minute of the day. Since we’re talking about outsourcing, we only feel it’s right to remind you of the partnership that’s available from Smith.ai. And they can do all this while you’re running your business and worrying about the day-to-day operations. If you choose to hire a bookkeeper and outsource your taxes specifically to a CPA or other tax expert, that’s one way to go. Everyone asks whether they should hire a bookkeeper, which can be more affordable, or if they truly need the skills and expertise of a CPA.
Be sure to ask if there are additional fees for more transactions, calls with your bookkeeper, or additional report requests. You want a company that has a secure infrastructure for handling your sensitive financial information with success stories from their clients At BELAY, our current length of service with our bookkeepers is 25 months – though we have many bookkeepers that have been with us five years and more. For more on exactly what it’ll cost you to not do your bookkeeping, check out The Cost Of Not Doing Your Bookkeeping. Maybe you’re afraid of the information in your financials. You’re fearful that you don’t have the expertise to get it all done – and get it all done accurately – so you put it off so that you’re not revealed as incapable.
In the U.S. currently, small businesses are generally charged an hourly rate of $150 to $450 per hour for their bookkeeping needs when they hire a Certified Public Accountant. Part-time bookkeepers and outsourced bookkeeping firms are a sound solution for new businesses, while full-time bookkeepers tend to benefit more established companies more. Instead of charging an hourly rate, some bookkeepers may charge a flat monthly fee.
What is the going rate for a full charge bookkeeper?
As of Jan 1, 2026, the average annual pay for a Full Charge Bookkeeper in the United States is $59,429 a year. Just in case you need a simple salary calculator, that works out to be approximately $28.57 an hour.
How Much Does a Bookkeeper Cost?
The type and number of certifications a bookkeeper has can impact the actual cost of their service. You want to hire a bookkeeper with the requisite qualifications. Many businesses rely on FreshBooks because of their flexible, trustworthy, and versatile system. One of the main benefits of such an approach is that you can customize the services you want the bookkeeper to provide. Companies often train their office managers or existing staff to cover the part time bookkeeping responsibilities. Once you’re ready for a professional bookkeeper, you should find an option that best fits your needs.
Experience
It’s right or it’s wrong. Maybe you’re afraid of failure. Maybe you’re afraid of math. You could end up making a huge mess and, potentially, some seriously costly mistakes. “What’s ‘free time,’” you ask?
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Reality: Any taxpayer using QuickBooks, regardless of business size, can be audited. The IRS audits both small businesses and individuals to ensure compliance. Myth: As long as QuickBooks is used, no manual records are needed. Reality: Supporting documents and manual records are still important for verification.
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The salary alone can easily exceed $50K annually for an experienced bookkeeper, and this is before you add the cost of benefits and other overhead that can add approximately 20% more to the total cost of a single employee. You may still have to audit a full-time bookkeeper’s work from time to time, but having them at the office every day allows you greater access to them and lets them learn your processes & systems more efficiently. Companies will often choose to train an existing employee or office manager to take on the extra responsibilities of a part-time bookkeeper.
CPAs vs. bookkeepers
Bookkeepers charging flat fees for small business owners can be a convenient and cost-effective option. But how do you know if you should handle bookkeeping yourself or hire a professional? You’ve decided it’s time for a bookkeeper. Accurate monthly and annual reports of financial data allow you to effectively run your company, enable you to better analyze operations, and help inform all business decisions.
In addition to the above, a business owner may also be wary of trusting a part-time bookkeeper with some of the critical financials and records of their customers and/or clients. 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. Businesses typically expect certain services to be part of bookkeeping, but providing additional offerings that add value to your clients’ businesses can justify charging a higher fee. And with time being the ultimate resource, it’s important to charge clients proportionally to the amount of time you’re dedicating to their services. You must understand what bookkeeping services you need and whether it’s best to hire a professional bookkeeper full time, part time, or outsource the service.
- Everyone asks whether they should hire a bookkeeper, which can be more affordable, or if they truly need the skills and expertise of a CPA.
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- If you don’t need all the services of a CPA, you could hire a bookkeeper instead, which would cost around $30 to $90 per hour.
- Maybe you’re afraid of the information in your financials.
- As a small business owner, keeping track of your financial records is essential for the success of your business.
The lesser cost of a part-time bookkeeper (as opposed to a full-time employee) is the biggest benefit for companies. Part-time bookkeepers typically perform smaller tasks like inputting receipts and keeping tabs on employee timesheets. The fees are considerably lower than in-house bookkeepers (starting around $400/month on average) and go up depending on quantity and complexity of services involved.
How long have you been providing outsourced bookkeeping?
Let’s compare the cost of an in-house bookkeeper vs. an outsourced bookkeeper. Accountants who have a bachelor’s degree in accounting – or a finance degree considered an adequate substitute – and interpret, classify, analyze, report and summarize financial data. “So then why wouldn’t I hire an accountant who could handle all of the above? Here are some typical tasks that bookkeepers do – and don’t do …
Full-time employees also tend to be more involved with the company for which they work, and you should receive greater long-term benefit from working with someone who knows your business thoroughly. You will need to dedicate some of your time to audit their work on an on-going basis, and you how much do bookkeeping services for small businesses cost may still be required to do more of the high-level accounting work, such as projecting and reporting. The average annual salary for bookkeepers is between $37,000 to $47,000 (per Salary.com).
And let’s not even get into how they’re more qualified, dedicated to handling bookkeeping and nothing else and – GASP! But bookkeeping is much like going to the dentist – no one actually wants to do it, but not doing it simply isn’t an option, either. Learn more when you schedule a consultation to discuss what the virtual receptionists at Smith.ai can do for your small business. What’s more—if you’re still working on that outreach and self-promotion, ask how we can assist with outbound sales support and outreach campaigns, too. Plus, it all comes with a strategy to manage every last detail.
You can go for part time bookkeeper, full time bookkeeper, or outsourced bookkeeping services. To prevent any unexpected expenses, it’s crucial to establish all the costs and obligations upfront before engaging a bookkeeper. For instance, if your business uses accounting software, they may charge a fee for setting it up or maintaining it on an ongoing basis. When you decide to hire a bookkeeper, it’s important to be aware of the various expenses that may come along with their services. Overall, choosing a bookkeeper who charges flat fees can be a wise decision for small business owners who want to ensure their finances are managed effectively while maintaining control over their expenses.
For more on how to find a good bookkeeper, check this out. That subscription is set and based on an agreed-upon scope of work, and will not incur additional fees based on transactions or report requests. We work hard to evaluate the necessary tools and technologies that support remote work relationships while providing the key checks and balances needed in bookkeeping. At BELAY, we’ve provided remote services from all over the U.S. for 10 years. We are intentional in our placement as we want the bookkeeper to be a great fit for your team. At BELAY, you have one dedicated bookkeeper that completes all work on your account.
And because you’re giving them a quote prior to starting the work, prospective clients won’t be surprised by any hidden costs. Ask other bookkeepers about services, rates, and gather any other information about working in your area that will help you stay competitive. Hopefully, you now have a better idea of what bookkeeping services you can afford and which services come with a lower or higher bookkeeper cost. For example, a freelance bookkeeper located in India or other low-cost countries can charge less for their services compared to an independent bookkeeper in Europe or Canada.