Bookkeeping is the backbone of any successful business. Keeping track of financial transactions, organizing records, and ensuring compliance with tax laws are essential for making informed decisions. Whether you’re a small business owner or managing a growing company, accurate bookkeeping helps maintain cash flow, avoid penalties, and prepare for tax season.
But how much does a bookkeeper actually cost? The answer depends on several factors, including the size of your business, the complexity of your financial records, and the level of expertise you need. Some businesses opt for an in-house bookkeeper, while others prefer outsourcing to save on costs.
Bookkeeping services can be charged hourly, on a flat monthly fee, or as part of a subscription-based model. Hourly rates typically range from $20 to $100, depending on experience and location. Monthly packages can start as low as $200 for basic bookkeeping and go up to $2,500 or more for full-service financial management.
Factors influencing bookkeeping costs include the number of transactions, payroll processing, tax preparation, and the software used. A small business with a handful of transactions will pay significantly less than a company managing multiple accounts, invoices, and payrolls.
Ultimately, understanding bookkeeping costs helps business owners decide whether to hire in-house, outsource, or handle finances themselves. The right choice depends on budget, business complexity, and the level of financial expertise required to keep things running smoothly.
How Much is a Bookkeeper?
The cost of hiring a bookkeeper varies depending on several factors, including the complexity of financial transactions, business size, and level of expertise required. Business owners can choose between different pricing models, such as hourly rates, flat fees, or subscription-based services, each with its own advantages.
General Pricing Structure for Bookkeeping Services
Bookkeepers typically charge in one of three ways: hourly rates, fixed monthly fees, or custom pricing based on service needs. Small businesses with simple financial records may only require basic bookkeeping, while larger companies might need more extensive financial management, impacting costs.
Hourly rates can range from $20 to $100 per hour, depending on the bookkeeper’s experience, location, and service complexity. Entry-level bookkeepers charge on the lower end, while certified professionals or those with industry-specific expertise command higher rates.
Fixed monthly fees are another common pricing model. Many bookkeeping firms offer package deals based on transaction volume and services required. Basic plans start at $200 to $500 per month, while more comprehensive packages, including payroll and tax preparation, can exceed $2,500 per month.
Hourly Rates vs. Flat Fees
Choosing between hourly rates and flat fees depends on a business’s financial needs. Hourly rates work well for businesses that need occasional bookkeeping or one-time cleanup services. However, costs can fluctuate, making budgeting unpredictable.
A flat fee structure offers more consistency. Businesses that require ongoing bookkeeping often prefer a fixed monthly cost, which covers services like reconciling accounts, managing invoices, and tracking expenses. Subscription-based bookkeeping services, where companies pay a recurring fee for cloud-based accounting solutions, also fall into this category.
Factors Affecting Bookkeeper Rates
Several factors influence how much a bookkeeper charges, including:
- Business Size: Larger businesses with higher transaction volumes require more time and expertise.
- Service Scope: Basic bookkeeping (data entry, reconciliations) costs less than full-service bookkeeping (financial analysis, tax filings).
- Experience & Certification: A certified bookkeeper or QuickBooks ProAdvisor charges more than an entry-level freelancer.
- Location: Bookkeepers in major cities typically have higher rates than those in smaller towns.
- Software & Technology: Businesses using advanced accounting software may need specialized bookkeepers, impacting costs.
Ultimately, selecting the right bookkeeping service depends on a company’s budget, financial complexity, and need for professional expertise.
How Much is Bookkeeping Services?
The cost of bookkeeping services depends on how businesses choose to handle their financial records. There are three main models: in-house bookkeepers, freelancers, and outsourced services. Each option comes with different price points and service levels, making it important to choose the right fit based on business needs and budget.
Breakdown of Different Bookkeeping Service Models
In-House Bookkeepers
Hiring an in-house bookkeeper means having someone dedicated to managing financial records full-time or part-time. This is a good option for businesses with high transaction volumes or complex financial needs.
- Part-time bookkeepers earn between $18 and $35 per hour, depending on location and experience.
- Full-time bookkeepers can earn an annual salary ranging from $40,000 to $90,000, plus benefits like health insurance and paid leave.
- Additional costs include accounting software, payroll taxes, and office space.
This model provides direct oversight but is often the most expensive due to salary and overhead costs.
Freelance Bookkeepers
Freelancers offer flexible bookkeeping services on an hourly or project-based basis. They are ideal for small businesses that don’t need full-time help.
- Hourly rates range from $20 to $80, depending on experience and location.
- Businesses can hire on a per-project basis, which can cost $200 to $2,000 for tasks like year-end financial reports or tax preparation.
Freelancers are cost-effective but may lack the availability or depth of service of a dedicated bookkeeper.
Outsourced Bookkeeping Services
Outsourced bookkeeping firms handle financial management remotely, often offering scalable services. This option is great for growing businesses that need professional bookkeeping without the cost of hiring an employee.
- Basic plans start at $200 to $500 per month, covering essential bookkeeping tasks.
- Comprehensive plans range from $1,000 to $2,500 per month, including payroll, tax support, and financial reporting.
- Custom enterprise-level solutions may cost over $5,000 per month.
Price Variations Based on Service Complexity
- Basic bookkeeping (data entry, reconciliations) costs less.
- Advanced bookkeeping (financial analysis, tax prep) costs more.
- Industry-specific bookkeeping (e.g., for law firms or e-commerce) may require specialized expertise, increasing the price.
Choosing the right service model depends on business size, financial needs, and budget constraints.
How Much is a Bookkeeper for a Small Business?
Small businesses often operate on tight budgets, making bookkeeping an area where owners must carefully weigh costs. While bookkeeping is essential for tracking income, managing expenses, and ensuring compliance, the cost of hiring a bookkeeper varies based on business size, complexity, and financial needs. Small business owners must decide between doing it themselves (DIY) or hiring a professional, each with its own advantages and drawbacks.
Cost Considerations for Small Businesses
The cost of bookkeeping for a small business depends on several factors, including transaction volume, payroll complexity, and whether tax preparation is required. While large corporations may have dedicated accounting departments, small businesses often seek cost-effective solutions, such as:
- Hourly Bookkeeping Rates: Freelance bookkeepers typically charge between $20 to $80 per hour, with experienced professionals charging on the higher end.
- Flat Monthly Fees: Outsourced bookkeeping services start at $200 to $500 per month for basic services and can go up to $2,500 per month for more comprehensive financial management.
- Software Costs: Many small businesses use QuickBooks, Xero, or FreshBooks, which range from $20 to $200 per month depending on features.
Since small businesses often experience seasonal fluctuations, it’s important to choose a bookkeeping solution that aligns with workload and budget.
DIY Bookkeeping vs. Hiring a Professional
DIY Bookkeeping
Some small business owners attempt to handle their own bookkeeping using software like QuickBooks or Excel. This can be a cost-saving measure, but it requires time and financial knowledge.
Pros:
✅ No extra costs beyond software fees.
✅ Full control over financial data.
✅ Useful for businesses with minimal transactions.
Cons:
❌ Time-consuming, taking focus away from core business operations.
❌ Prone to errors, which can lead to costly mistakes.
❌ Lacks professional insight into tax deductions and compliance.
Hiring a Professional
A professional bookkeeper provides expertise and ensures financial accuracy, allowing business owners to focus on growth.
Pros:
✅ Saves time and reduces stress.
✅ Ensures compliance and accurate records.
✅ Can help with financial strategy and tax planning.
Cons:
❌ Higher upfront cost.
❌ May require additional software or service subscriptions.
For small businesses, the best choice depends on transaction volume, financial complexity, and available time. Many start with DIY bookkeeping but later transition to hiring a professional as their business grows.
How Much is a Bookkeeper Per Month?
Bookkeeping is an essential part of running a business, ensuring accurate financial records, compliance, and smooth operations. But how much does it cost per month? The answer depends on several factors, including the complexity of transactions, the size of the business, and whether you choose a freelance bookkeeper, an in-house employee, or an outsourced bookkeeping service. Many businesses also opt for subscription-based bookkeeping services, offering fixed monthly pricing.
Monthly Cost Breakdown for Different Bookkeeping Options
When considering bookkeeping costs, businesses must evaluate their needs based on transaction volume, payroll processing, and reporting requirements. Below is a breakdown of the different bookkeeping options and their average monthly costs.
1. Hiring an In-House Bookkeeper
For businesses that require a full-time or part-time bookkeeper, hiring an in-house employee may be an option. This comes with salary expenses, benefits, and additional costs for software and office space.
- Part-time bookkeeper: $800 – $2,500 per month
- Full-time bookkeeper: $3,500 – $6,000 per month
- Additional costs: Payroll taxes, health benefits, software (QuickBooks, Xero), and office space
While this provides direct control over bookkeeping, it is usually the most expensive option, best suited for larger businesses with complex financial needs.
2. Hiring a Freelance Bookkeeper
Many small businesses opt for freelance bookkeepers, who charge hourly rates or fixed monthly fees depending on service requirements.
- Basic bookkeeping (reconciliations, categorization): $200 – $500 per month
- Intermediate bookkeeping (accounts payable/receivable, payroll): $500 – $1,500 per month
- Full-service bookkeeping (reporting, tax-ready books, strategy): $1,500 – $3,000 per month
Freelancers offer flexibility, but availability and expertise can vary, making it essential to vet professionals thoroughly.
3. Outsourced Bookkeeping Services
Outsourced bookkeeping firms provide professional financial management without the cost of hiring an in-house employee. These services are often subscription-based, providing scalability as businesses grow.
- Basic packages: $200 – $600 per month (bank reconciliations, transaction recording)
- Mid-tier packages: $600 – $1,500 per month (payroll, tax prep, invoicing)
- Premium packages: $1,500 – $5,000 per month (financial forecasting, full CFO-level services)
Outsourced bookkeeping is a great middle-ground option, offering affordability and professional oversight.
Subscription-Based Bookkeeping Services
Many modern bookkeeping services now operate on a fixed-price subscription model, providing businesses with predictable costs and access to cloud-based accounting tools. These services cater to different business sizes and needs.
1. DIY Subscription Services (Software-Based Bookkeeping)
For small businesses that prefer to handle their own bookkeeping, cloud-based accounting software provides a cost-effective solution.
- QuickBooks Online: $30 – $200 per month
- Xero: $15 – $70 per month
- FreshBooks: $20 – $50 per month
These platforms automate many bookkeeping tasks, reducing the time required for manual data entry. However, they still require business owners to stay actively involved in financial tracking.
2. Hybrid Subscription Services (Software + Human Support)
Some services offer a mix of software automation and access to a dedicated bookkeeper. This is a great solution for small businesses needing occasional professional support.
- Bench Accounting: $300 – $600 per month
- Pilot Bookkeeping: $600 – $1,500 per month
- Bookkeeper360: $250 – $1,000 per month
These services offer automated categorization, transaction tracking, and real-time reporting, with the added benefit of human review and professional assistance when needed.
3. Fully Managed Subscription Services (Hands-Off Bookkeeping)
For businesses that want a completely hands-off approach, fully managed subscription bookkeeping services take care of everything. These packages include daily transaction tracking, invoicing, payroll, and tax preparation.
- Basic package (monthly reconciliations, reports): $400 – $800 per month
- Growth package (payroll, invoicing, budgeting): $800 – $2,500 per month
- Enterprise package (financial strategy, CFO advisory): $2,500 – $5,000 per month
Choosing the Right Bookkeeping Option
When deciding on the best bookkeeping option for your business, consider:
✔ Budget: Small businesses may start with DIY or a freelance bookkeeper, while growing companies may need outsourced or full-time bookkeeping.
✔ Complexity: If you have multiple accounts, payroll, and tax filings, a professional bookkeeper is often worth the investment.
✔ Scalability: Subscription services allow businesses to scale bookkeeping services as they grow.
The right choice depends on business needs, transaction volume, and the level of expertise required.
Additional Costs to Consider
When budgeting for bookkeeping services, it’s important to factor in additional costs beyond the standard bookkeeping fees. Many businesses overlook software expenses, payroll and tax filing add-ons, and consultation fees, which can significantly impact the total cost of financial management.
Software and Tools
Modern bookkeeping relies heavily on accounting software to streamline financial tracking, reporting, and compliance. While some bookkeepers include software in their fees, others require businesses to purchase their own subscriptions.
- QuickBooks Online: $30 – $200 per month
- Xero: $15 – $70 per month
- FreshBooks: $20 – $50 per month
- Wave (basic features free, advanced features paid)
Beyond basic accounting software, businesses may need tools for expense management, invoicing, and financial forecasting, which add to the overall cost.
Payroll and Tax Filing Add-Ons
Bookkeeping services often do not include payroll processing or tax filing unless specifically requested. If a business requires payroll management, this can add a significant monthly expense:
- Payroll Processing: $30 – $200 per month + $4 to $10 per employee
- Tax Filing Services: $200 – $2,500 per year, depending on complexity
- Sales Tax Filing: Additional $50 – $300 per filing period
Some bookkeeping firms offer bundled packages that include payroll and tax services, which can be more cost-effective than hiring separate providers.
Consultation and Advisory Fees
Basic bookkeeping covers transaction tracking, but financial strategy, forecasting, and compliance advice often come at an additional cost. Businesses seeking expert guidance should budget for consultation fees.
- Financial Advisory (budgeting, forecasting): $150 – $500 per hour
- Tax Planning and Strategy: $200 – $1,000 per session
- Audit Support and Compliance: $500 – $5,000, depending on complexity
Some businesses only need occasional advisory services, while others benefit from ongoing CFO-level support, which can be a recurring monthly expense.
Final Thoughts
While bookkeeping is a core expense, these additional costs can quickly add up. Businesses should evaluate their needs and choose services that fit their budget. Opting for bundled packages or subscription-based services can help minimize unexpected costs while ensuring comprehensive financial management.
Conclusion
Bookkeeping costs vary widely based on factors like business size, transaction volume, service complexity, and whether a company hires an in-house bookkeeper, a freelancer, or an outsourced service. Small businesses may only need basic bookkeeping, which can cost $200 to $500 per month, while larger or more complex businesses might require full-service financial management, ranging from $1,500 to $5,000 per month. Additional expenses such as payroll processing, tax filing, and financial advisory fees should also be considered when budgeting for bookkeeping services.
Tips for Finding Affordable and Reliable Bookkeeping Services
To keep bookkeeping costs manageable while ensuring accuracy and compliance, businesses should:
✔ Compare Pricing Models: Choose between hourly, flat-rate, or subscription-based bookkeeping depending on financial needs.
✔ Look for Scalable Solutions: Start with basic bookkeeping and upgrade services as the business grows.
✔ Use Cloud-Based Tools: Investing in software like QuickBooks or Xero can reduce manual labor and streamline bookkeeping.
✔ Vet Bookkeepers Carefully: Whether hiring a freelancer or outsourcing, ensure they have experience in your industry and the right certifications.
✔ Consider Bundled Packages: Many bookkeeping firms offer packages that include payroll, tax preparation, and financial consulting at a lower overall cost.
Call to Action
Accurate bookkeeping is crucial for business success, but finding the right solution depends on budget, business complexity, and long-term growth plans. Whether you need basic bookkeeping, full-service financial management, or advisory support, it’s essential to evaluate your bookkeeping needs carefully before making a decision.
If you’re looking for reliable bookkeeping services tailored to your business, consider working with an experienced professional who can help you stay compliant, optimize cash flow, and plan for growth.