How Much Does Bookkeeping Cost?

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). Bookkeeper salaries vary state by state (see our chart below), and depending on where you live, you could be paying a large difference in one place versus another. You can calculate the time spent on bookkeeping tasks and translate that into dollars. If you spend too much time on bookkeeping, it’s easier to hire a bookkeeper to keep track of your financial records, financial statements, and other elements.

• A key benefit of outsourcing is that it allows you to customize the services you receive to your specific bookkeeping needs.
• Outsourced bookkeepers can be another solution with monthly bookkeeping fees starting from $99 per month.
• To illustrate the cost efficiency of a part-time bookkeeper, consider the following example.
• Another option is to work as an in-house bookkeeper, which typically earn a salary of $49,672 per year, or the national average of $24 per hour.
• While this may be a lucrative option on paper, any oversight or error in the sheets will come at your company’s expense.

However, keep in mind that those higher living costs may cancel out the financial benefits of increased bookkeeping salaries. Also, note that the degree-related salaries cover all accounting professionals who hold that degree. Industry observers agree that software improvements have made bookkeeping more efficient. As a result, the profession’s growth rates have slowed, but the Strategic Finance article notes growing gaps between the number of open jobs and the number of people qualified to fill them. For this client, I do some tallying of their hourly employee amounts and then note how much is deducted for their health insurance and retirement savings. All I need to do is fill out the spreadsheet, and then I send it off to the payroll department.

What to Look For in a Bookkeeper

The average small business spends between $1,150 to $1,400 per month on bookkeeping. The least amount you can expect to pay in bookkeeping fees is $348 a month. Larger businesses would need a full time bookkeeper which costs between $55,000 to $85,000 a year. How you pay your bookkeeper depends on whether they are in-house (full-time or part-time employees), freelance, or an online bookkeeping service.

Depending on what kinds of services your bookkeeper provides, they may be able to issue and process paychecks or direct deposits and make tax payments (withholding) on behalf of your employees. The good news for most small businesses is that they don’t need full-time bookkeeping services. If you only have a few employees and don’t do a lot of transactions or have hundreds of invoices to go through, you should be able to get by with part-time help.

Choose Wishup for the Most Pocket-Friendly and Efficient Bookkeeping!

Look at the types of services you offer and compare what you currently charge to others. 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. To learn more about the cost of bookkeeping, follow this small business guide.

Which states have the highest freelance bookkeeping rates?

DIY bookkeeping can save money but may lead to errors that could cost you more in the long run. Outsourcing bookkeeping can free up your time to focus on other aspects of your business, ensuring accuracy and compliance. While having a degree and/or bookkeeper certification will give you the knowledge that you need to get your foot in the door, having practical work experience is equally valuable.

Find a Professional Bookkeeper

These include basic and full-service bookkeeping, where the decision largely depends on your business goals and needs. 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. The number of tasks you assign to them directly impacts the price of each bookkeeping service.

(Based on data from Bureau of Labor Statistics, Salary, Payscale, Glassdoor, and Indeed.) This comes out to $3,200 – $3,520 per month, or an average hourly wage of $20 – $22. Don’t forget, as a bookkeeper, you should have a specific expertise. Anytime you can niche down and be specialized in a specific area of bookkeeping, you’ll be able to charge more money for your services. If they have an office worker designated to some of those other tasks, not all of the 1-3% would be distributed directly to you. I often mention that, starting out as a bookkeeper, you can charge $40 per hour to your clients. Then, as you gain experience and niche down, you can charge up to $80 or sometimes more per hour.

Finding the Right Bookkeeping for Your Business

We recommend QuickBooks Online, which we ranked as the overall best small business accounting software. If you decide to become certified as a QuickBooks ProAdvisor, you’ll have the added benefit of a free subscription to QuickBooks Online Accountant. One of the biggest advantages of outsourcing your bookkeeping is the cost.

How much does hiring a traditional bookkeeping firm cost?

In 2020, they combined to account for more than 11.5% of all bookkeeping, accounting, and auditing clerks working in the United States. Bookkeeper salary levels vary by location, based on factors like local labor market conditions and local living costs. In these cases, employers free cash flow valuation may increase their pay rates to attract the best available candidates. After a few months of working at an hourly rate, you can send your client a proposal or contract, spelling out the tasks you will be doing and what the fixed monthly pricing will be moving forward.

Our VAs possess over 200 skills and capabilities and are trained in 70+ no-code tools. In addition to getting certified through the AIPB or NACPB, providers may also advance their learning to get certified in QuickBooks. Our service is 100% free to use and you can generally expect to receive quotes within minutes. You can include all these questions into your bid when you post it on ServiceSeeking.com.au and get quotes and answers almost instantly.