For one, a bookkeeper is generally cheaper than an accountant, because they have different functions, expertise, and qualifications. You may decide to hire an accountant to help you put together your fiscal data. An accountant provides insight into your organization’s profitability through financial analysis and reporting. These analyses prove invaluable when making intelligent business decisions. A full charge bookkeeper takes care of the usual bookkeeping service but also handles some accounting duties.

How Much Does a Bookkeeper Cost?

Whether you need a full time or part time employee will greatly impact how you calculate labor cost. Employee costs like benefits, training, and time-off are important to think about when comparing an in-house bookkeeper and a financial management company. There’s a difference between bookkeeping and accounting, and in some cases the work may be similar. The primary function of a bookkeeper is to record transactions (receipts and payments) and keep them organized. Many businesses are primarily concerned with keeping this up-to-date to ensure they have an accurate financial picture and are staying compliant with basic business principles.

Integrated Financial Tools and Software

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. A bookkeeper can be hired and work directly for the company, either part-time or fulltime, depending on the amount of work needed to be done. This work could also be outsourced to a company, like All About Businesses, which functions as an offsite resource.

  • This is inclusive of everything, so when you compare this to the cost of an inhouse bookkeeper, it will usually always be more cost effective.
  • You may decide to hire an accountant to help you put together your fiscal data.
  • To get you started, we’ve collected a chart below of the average hourly wage for bookkeepers in each state.
  • You have 2 bank accounts, 1 business credit card, and you use PayPal and Stripe to accept payments for your services from clients directly through your website.
  • After completing part one of the CB exam, repeat this process to take part two.

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. Typically, you’ll want to charge your more frequent clients at a lower rate because you’re seeing them more often and reviewing their books on a regular basis. For one-time clients, you may decide to charge more since you know they may not return and have last-minute requests and needs.

Similar Jobs to Bookkeeper

CPB credentials require 24 hours of continuing education per year of licensure. Small businesses are most often prone to outsourcing their bookkeeping to third parties. On paper, a part time bookkeeper may look like an attractive option. However, any error or oversight that may appear on the sheet is fully at your business’s expense. Get up and running with free payroll setup, and enjoy free expert support. Do your due diligence to make sure you’re billing your clients fairly.

  • Many clients may be willing to pay a little more in exchange for trustworthy knowledge and training.
  • While some months may not require much from a bookkeeper, others are inevitably going to be busier than others.
  • For outsourced bookkeeping, the price is from $500 to $2,500 per month for basic bookkeeping tasks.
  • Let’s jump into the details and explore your options for bookkeeping as a small to medium sized business.
  • This is a highly recommended method because it tells the company’s financial status based on known incoming and outgoing funds.
  • For most small businesses, however, an online flat fee bookkeeping service is a better option.

Otherwise, you may wind up missing out on profits or scaring off clients with high rates. Chances are, clients are going to be more willing to pay an accounting firm more money over another if they have more experience. Your bookkeeper will go over your reports to help you understand your financial situation, but may not provide financial or business advice (even if they’re a credentialed CPA). Because your bookkeeper can’t represent your business before the IRS, they can’t give tax advice or guidance. Your bookkeeper categorizes transactions and reconciles accounts for you, freeing up time to focus on your business.

Why Bookkeeping Is Important for Small Businesses

Hiring a bookkeeping agency or freelancer may seem overwhelming, but it can be a simple, cost-effective option with many advantages. When you first start a business, you are likely to be wearing many hats as you figure things out. But one thing is for sure, the How Much Does a Bookkeeper Cost? key to a successful venture starts with proper bookkeeping. Bookkeeping can be simple or complicated, depending on the size of the company. But, with growth comes an increased responsibility for your back office, and your bookkeeper might need help keeping up.

How Much Does a Bookkeeper Cost?

While a bookkeeper might charge between $30 and $90 per hour, the hourly cost for an accountant can be between $150 to $450 per hour. Bookkeeping focuses on recording and organizing financial data, including tasks such as invoicing, billing, payroll and reconciling transactions. Accounting is the interpretation and presentation of that financial data, including aspects such as tax returns, auditing and analyzing performance.

Virtual bookkeepers work with a team, so if they have a question on something they have resources to go to. One of the biggest benefits of a virtual bookkeeper is the ability to customize the services you need and change them as your situation changes. They have the flexibility to grow with your company and are always there when you need them. You never have to manage them to ensure things get done on time, and they don’t take up “office space,” which is something else having an in-house bookkeeper will need like a desk, computer, etc. The highest referral a business owner can find is from a friend in the industry. If you’re looking at an online bookkeeping service, verify their ratings.

  • Now that you know the answer to the question “How much does a bookkeeper cost?
  • 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.
  • Certification exams and materials are $574 for nonmembers and $479 for AIPB members.
  • If not done at the time of the transaction, the bookkeeper will create and send invoices for funds that need to be collected by the company.
  • If your monthly average is $50,001 or more, the monthly price for QuickBooks Live is $400.

Whether you’re a church, nonprofit, or small business, managing your bottom line is the difference between success and failure. For more on exactly what it’ll cost you to not do your bookkeeping, check out The Cost Of Not Doing Your Bookkeeping. On average, remote work is very often cheaper for employers – reportedly $11,000 cheaper – when instituted on just a part-time basis. Meghan Gallagher is a Seattle-based freelance content writer and strategist. In Marketing Management and a background in digital marketing for healthcare, nonprofit, and higher education organizations. You’ll receive instructions via email about how to best prepare and set up your test-taking environment at home, a local library or another place with an internet connection.

Must Ask Bookkeeping Interview Questions (With Answers)

In today’s remote work, many companies hire bookkeeping services in states like Florida, which have no income tax and lower cost of living. Like traditional bookkeepers, online bookkeeping services (like Pilot) employ a number of professional bookkeepers to provide their clients with books service. Unlike many traditional firms, online providers aren’t usually restricted by geography, so their services are available anywhere in the US.