Accounting and Bookkeeping Services Cost? Fixed or Hourly?

going rate for bookkeeping services

This way of charging has changed quite a bit now that we have QuickBooks Online. The actual inputting of transactions isn’t what is taking the most time. What is taking the most time is being aware of their finances, organizing things, and pulling reports.

going rate for bookkeeping services

It records all your financial metrics and assures you maintain regulatory compliance at the state and federal levels. While this makes it easier to control your bookkeeping costs, most small businesses require consistent services to keep their books straight. The salary of an entry-level bookkeeper in Brooklyn, New York, is estimated to be around $55,117, but it ranges from $55,000 to $70,000. Add in years of experience, benefits, and cost of living and it gets more expensive. According to, the average bookkeeper salary in the United States is $45,816.

What Does a Bookkeeper Do for Small Business?

This is highly beneficial to companies entering a growth stage without having to provide additional office space or pay salary benefits. What I recommend when you’re starting out is to begin with your hourly rate and transition your client into a fixed monthly rate. It’s really hard to figure out what to charge someone without actually doing the work and finding out how much time your client’s account will take you each month. Many times you’ll be discovering things about the business as you get to know your client, and you may even find some issues your client didn’t know were there.

going rate for bookkeeping services

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. At the same time, we recognize that our clients like to have options when it comes to their accounting services. Some examples of typical variations include the frequency of review with a controller, managed employee expense reporting, payroll management and sales tax reporting.

factors that define the cost of bookkeeping services

The top three states with the highest freelance bookkeeping rates are Massachusetts, Washington, and Maryland, with average hourly rates of $43.57, $40.18, and $39.09, respectively. Whether or not you’re self-employed is a major factor in how much you make as a bookkeeper. For W2 workers, the average hourly rates are closer to $20/hour, while self-employed bookkeepers earn closer to $30/hour. The average hourly rate for bookkeepers in the U.S. is $20 per hour, according to The range swings from $18 to $25 per hour, and there’s a lot of room for growth beyond the $25/hour figure.

How do I become a freelance bookkeeper?

  1. Get online.
  2. Connect to cloud software.
  3. Create service bundles.
  4. Increase your revenue per client.
  5. Get free referrals.
  6. Build your digital presence.
  7. Don't forget traditional marketing.
  8. Stay on top of your expenses.

But your books – and the fact that they squarely shoulder the financial health of your burgeoning business – can’t be left to tackle late at night after work, family, kids, dinner, baths and bedtime are done. There are major differences between the three types of bookkeepers and what each can offer your business. Figure out which works for your business and start tackling the problems, or potential problems, with your books.

How much does hiring an internal bookkeeper cost?

On average, outsourced bookkeeping services cost anywhere between $500 to $2,500 a month for small and medium businesses depending on the hours you need each month. If either part-time or in-house bookkeeping is not the ideal solution, switching to outsourced bookkeeping or accounting could be your best option. Many businesses are concerned about switching over to outsourcing, not understanding how the pieces fit together with this model. But with today’s advancements in technology, outsourcing has never been easier. Outsourcing can provide advanced and less costly bookkeeping service than a typical in-house bookkeeper.

  • (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.
  • This would be for the basic bookkeeping, reconciling, and bank accounts.
  • Hourly pricing is a great option when you only need help with the books occasionally.
  • A small business client will have different bookkeeping needs than a large corporation.

Some of our clients require incredibly complex reporting and financial management, which requires oversight by highly trained professionals. Outsourcing also offers many benefits that you can’t get with an in-house bookkeeper. If you’re growing, the outsourced bookkeeping service should be able to help you scale by adding full service accounting when you are ready for it. In the United States, the average hourly rate for a bookkeeper ranges from $20 to $50 per hour, with an average of around $30 per hour.

What’s Included With a Business Bookkeeping Service?

While many bookkeepers charge by the hour, it is becoming increasingly common for outsourced accounting firms to quote a fixed fee based on the volume of transactions and complexity of the work involved. Basic bookkeeping services can start as low as a few hundred dollars a month, but can increase to as much as several thousand dollars a month as the workload increases. Often you get what you pay for and will end up disappointed because your books are a mess. Just like any other freelancer, freelance bookkeepers work for themselves and provide bookkeeping services for clients. Freelance bookkeepers can be a good option if you understand bookkeeping in depth, and are able to be the second set of eyes for your books.

As a business owner, you’re acutely aware of how precious a commodity time is. But what you might not realize is that putting bookkeeping off can cost exponentially more time. Even at the top of the range – $2,500 per month – it would cost your business $30,000 a year. Outsourced bookkeeping comes with none of the a la carte overhead expenses. With the idea of hiring a full-time accountant on your roster now put to bed, let’s consider what kind of bookkeeping you may need.

How Much Does a Bookkeeper Cost for a Small Business?

The cost of an in-house bookkeeper is generally much higher than an online bookkeeping service or freelancer. The average bookkeeper salary in the United States as of 2022 is $42,360 according to This rate is for an entry level bookkeeper without special qualifications and does not contemplate for additional benefits. For example, location can impact the price as well – the median salary for an entry-level bookkeeper in New York, NY is $50,959. The first thing to understand when trying to determine how much an accountant will cost for your small business is what services an accountant will provide. Using outside firms to handle your bookkeeping is similar to hiring an in-house bookkeeper to handle basic bookkeeping responsibilities without the added overhead cost of carrying employees on your payroll.

going rate for bookkeeping services

Right now my goal is to have all my clients on a fixed-rate pricing scale. In an ideal world, I’d have a handful of clients, I’d work two days a week, and I would have them pay me a set amount up front with automatic payments so we both know what to expect each month. When you hire one of these firms, the usual process is that they’ll give you a quote estimating how many hours it will take them to do your books, and what the cost for that will be. Keep in mind that this is often not binding – meaning it might take a lot longer than they think it will, which means your costs would be a lot higher than the quote. Most often they’re a small group of accountants or bookkeepers that serve a local geography, often with an additional team overseas. A common rule of thumb is that the real cost of an employee is 1.25 – 1.4x their salary – and possibly higher, depending on your local market conditions.

Hourly rates for bookkeepers vary by location, education, experience, type of service, and more. We’re going to break down all of those factors to help you decide if bookkeeping is the right online business for you. Full charge refers to managing all the company’s accounting requirements by these bookkeepers. These bookkeepers record complicated transactions, compile financial statements and tax returns, and manage timesheets and payroll, in addition to managing the company ledger.

  • Once you decide what to charge, you’ll also need to consider additional terms for collecting payment from your clients.
  • When you hire a VA from Wishup, you won’t have to worry about offering any training to them.
  • You will need to dedicate some of your time to audit their work on an on-going basis, and you may still be required to do more of the high-level accounting work, such as projecting and reporting.
  • At Milestone, we offer a tiered approach, offering foundation and growth packages.
  • Quoted rates at online providers offer the advantage of predictable costs, avoiding unexpectedly high hourly fees.
  • An in-house bookkeeper will often cost you more than an outsourced bookkeeper, although hiring one so gives you more oversight and control over your bookkeeping.
  • In general, it’s important to do your research and find a bookkeeping service that offers the services you need at a price that fits your budget.

Although most start-up firms don’t engage accountants until they are established, you would need to do so later on even though you would first require a bookkeeper rather than an accountant. An accounting service maintains financial records in addition to other things. It keeps track of all your financial data and ensures that you comply with all state and federal regulations. Internal, part-time pay ranges from $15 to $20 per hour, depending on the position and location.

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