Latest Facts and News
- The average hourly rate for a bookkeeper is approximately $21 as of February 2024.
- Outsourcing bookkeeping can save businesses up to 80% compared to in-house processing.
- The global outsourced bookkeeping market is projected to grow significantly in the coming years.
As a small business owner, you’re constantly juggling tasks like managing clients, leading your team, ensuring payments are on time, and keeping operations running smoothly. With so much on your plate, it’s no surprise that tracking finances like accounting expenses, invoices, and taxes often slips through the cracks.
That’s probably why you’re here. You’re looking for a bookkeeper to share the weight and help keep your business finances in check. But naturally, the big question on your mind is, how much does a bookkeeper cost for a small business?
The truth is, that the cost depends on factors like the size of your business, the complexity of your finances, and how often you need bookkeeping services. It’s not just about keeping your accounts organized; it’s about finding the right fit for your needs and budget.
In this blog post, we’ll break down everything you need to know about what affects bookkeeping costs, so you can make an informed decision for your business.
Check this out: How Much Do Bookkeeping Services Cost? Uncovering Average Rates and Pricing
Typical Pricing Structures for Small Business Bookkeeping
When it comes to bookkeeping, different ways determine the question you have in mind: How much does a bookkeeper cost for a small business? Let’s go over them one by one:
Hourly Rates
The hourly rates are pretty much the same and they mainly range between $19 and $24, of course per hour. And on average, you may find a good bookkeeper at $21 again on an hourly basis. Just one thing that is important here is that these rates can change depending on the place you live. In some places where the cost of living is lower, you find them on a low budget and vice versa.
Monthly Packages
Some services start at around $139 to $155 a month for basic bookkeeping—things like transaction processing and reports. If you want more advanced features like payroll or budgeting, the price can go up, ranging from $400 to $1,000 per month.
And for businesses that need everything, including financial analysis and tax services, full-service packages can cost over $1,000 a month.
Per Transaction Pricing
Then, there’s the per-transaction option. On average, small business accounting costs can charge nearly $1.20 for every transaction but this can be impacted by the volume. If the volume is high, the price will definitely drop. Let’s take an example to understand this in a more easy manner.
Project-Based Pricing
Finally, there is project-based bookkeeping pricing. If we have to ask how much does a bookkeeper cost for a small business? The answer is that this is the bookkeeper’s fee for one-time tasks such as cleaning up your books or implementing new systems. The costs can vary, but it’s usually a good fit for specific jobs instead of ongoing work.
In the end, figuring out the best option for your business depends on your needs and what services you’re looking for.
So, Here Is An Extra Tip: Always make sure that you are asking your service provider what exactly is included in the package. This will help you avoid any kind of unexpected fees, especially when you are eagerly looking for a solid answer to the question: How much does a bookkeeper cost for a small business? |
Factors Affecting Bookkeeping Costs for Small Businesses
Note that there are a few things that can affect how much does a bookkeeper cost for a small business. Knowing these small business bookkeeping cost factors helps you understand why small business finance management fees vary.
Here are some factors to keep in mind:
- Complexity of Business Transactions: If your business has many different kinds of sales, international deals, or complicated invoices, it needs more time and skill to handle the books. More complexity naturally means higher bookkeeping service pricing.
- Volume of Transactions: The more transactions your business does like sales, purchases, or payroll, the more work there is to keep track of. More work means higher costs for bookkeeping.
- Frequency of Service: There is very simple math if your business needs bookkeeping services every alternate month or even week. It is obviously going to cost you more than doing it once a year or quarterly. The logic behind it is that the more often you need the service, the higher the cost you will have.
- Software and Technology Integration: Using fancy bookkeeping software like QuickBooks can make things easier and faster. But these tools cost some subscription charges, so they can increase the price of bookkeeping services.
- Industry Specifics: Certain industries, like healthcare or finance, have more complicated rules. Bookkeepers who know these rules are more expensive because they need special knowledge.
- Geographic Location: Where your business is located can also affect the cost. Some areas have higher bookkeeping service rates due to local economic conditions.
- Size and Structure of the Business: Larger businesses with more employees or departments need more detailed bookkeeping. This takes more time and resources, so it usually costs more.
Read More: What is a Virtual Bookkeeper? A Simple Guide
Part-Time Bookkeeping Vs. Full-Time Bookkeeping Vs. Outsourced Accounting Team: Cost Comparison
Choosing the right bookkeeping solution depends on the size, needs, and budget of your business.
No matter whether you are looking for a part-time or an in-house bookkeeping service, the table below will help you get a clear idea of how much does a bookkeeper cost for a small business based on when and how you need them.
| Category | Part-Time Bookkeeping | Full-Time Bookkeeping | Full Outsourced Accounting Team |
| Cost | $3,500-4,500 per month. Or $21 – $23 per hour, depending on the job description and location | $4,800-5,500 per month. Or $48,000 to $70,000 per year plus benefits and overhead | Outsourced bookkeeping fees are $5,000+ per month |
| Services Provided | Basic bookkeeping (data entry, accounts receivable/payable, timesheet tracking) | Full-time management of all bookkeeping tasks (payroll, compliance, tax filings, financial reporting) | Full range of accounting services (bookkeeping, tax filings, payroll, financial planning) |
| Oversight Needed | Requires supervision and management | No supervision needed, dedicated resource | No supervision needed, as it’s outsourced |
| Flexibility | Flexible in terms of hours and workload | Less flexible, as it’s a full-time position | Highly flexible, tailored to business needs |
| Pros | Cost-effective Flexible hours Handles basic tasks | Dedicated focus on bookkeeping No need for oversight Consistent and reliable | Scalable services Access to a full team of professionals No need for in-house staff |
| Cons | Requires supervision Risk of inexperience Hidden costs (e.g., management time) | High in-house bookkeeper costs compared to part-time options Less flexibility | Higher cost than part-time or full-time bookkeeping Less control over in-house processes |
| Best Fit For | Small businesses that can manage some accounting tasks themselves and need extra help. | Businesses needing a dedicated, full-time bookkeeping resource. | Growing businesses that need scalable services or want to outsource accounting completely. |
Also Read → How to Do Bookkeeping for a Restaurant: A Simple Guide
Yes, there can be hidden fees in bookkeeping services. Some providers charge extra for things like tax preparation, additional reports, or handling complicated transactions. Make sure to ask upfront about any extra financial record-keeping costs for services beyond basic bookkeeping so you’re not caught off guard later.
Yes, the bookkeeping service is sometimes negotiable, mainly when you sign a long-term contract with them or you get multiple services together. And the best piece of advice is to always ask for the option or the packages the service provider offers; this will help your budget and their business as well.
There is no one range to be true. The software used for bookkeeping can vary from $0 per month for basic options to hundreds of dollars per month for the more advanced features.
Well, when you compare the software price with the fees of a person, then you will find the bookkeeper costlier. However, hiring an individual rather than having a tool is 100 times more profitable in the long run.
Because the software does not know the behind-the-scenes in your business, your priorities, and more. But a bookkeeper has the ability to understand “your business” and make a manageable financial idea that can boost your business in all ways.
Always look for a bookkeeper who has at least good experience of accounting and finance, such as a degree in accounting or certification like Certified Bookkeeper (CB) or Certified Public Accountant (CPA). Experience with the specific software you use is also important. If your business has complex needs (like handling payroll or tax reporting), a more experienced bookkeeper might be necessary.
