For a lot of business owners, balancing the books is a primary indicator of a business’s success which means the first step to doing so is hiring a bookkeeper and asking how much does a bookkeeper cost? This depends on the size of your business, the amount of your transactions, and whether you choose to hire a full time bookkeeper or an external bookkeeping service.
Average Bookkeeper Cost
Typically, small businesses should budget $300 to $2,500 a month for bookkeeping. Businesses with simpler finances and fewer monthly transactions usually pay on the lower end. More complex bookkeeping with multiple accounts, tracking inventory, and assessing accounts receivable and payable elevates the cost.
Hourly, bookkeepers charge $30 to $100, depending on expertise, location, and the complexity of the job. Ongoing support might be more predictable and easier to budget for if a bookkeeper offers a flat monthly fee. Some bookkeepers prefer charging flat fees per month, aligning with the predictable and budget-friendly model.
Factors That Affect Pricing
Several factors influence bookkeeping costs:
- Business Size and Complexity: The more financial activity your company has, the more time your bookkeeper will spend maintaining accurate records.
- Service Frequency: Whether you need daily, weekly, or monthly updates will impact the overall cost.
- Software and Tools: Using cloud accounting platforms like QuickBooks Online or Xero may streamline work but could include additional subscription fees.
- Additional Services: Payroll processing, tax preparation, or financial analysis often come at extra cost.
In-House vs. Outsourced Bookkeeping
When you hire a bookkeeper for your company, you typically spend between $45,000 and $65,000 every year, in addition to benefits and overhead costs. With outsourced bookkeeping, you have more leeway because you can have them do as much or as little work as you require. Many fourth-party companies work across multiple industries, and you also avoid IRS risk for data breach violations as they are also likely to adhere to data privacy and security regulations.
Conclusion
The amount you should expect to pay a bookkeeper depends on your business’s unique needs and financial complexity. While costs vary, investing in professional bookkeeping ensures accuracy, saves time, and helps your business stay compliant. Whether you hire in-house or outsource, a reliable bookkeeper is a valuable partner in your company’s financial success.
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