Hiring a part-time bookkeeper at 20 hours per week at a rate of $17 dollars an hour (the high end of the average hourly cost cited above) will cost you $340 total for the week. Part-time bookkeepers typically perform smaller tasks like inputting receipts and keeping tabs on employee timesheets. Companies will often choose to train an existing employee or office manager to take on the extra responsibilities of a part-time bookkeeper. While this may be a lucrative option on paper, any oversight or error in the sheets will come at your company’s expense. In-house accounting, on the other hand, gives you peace of mind knowing that someone you know and trust is handling your books and financials.
How much does a bookkeeper cost in 2024: an ultimate guide
To summarize, the cost of monthly bookkeeping packages is quite variable among providers. Rather than assuming a set price range, it’s important to evaluate each firm’s specific offerings. Make sure to clarify what’s included at each tier and determine what meets your business’ particular needs before making a decision. Experienced bookkeepers can charge more than $25 per hour, while entry-level bookkeepers make around $19 per hour on average. More than 5 years of experience typically results in command rates that are 25-50% higher.
What to Look For in a Bookkeeper
You can earn bookkeeping certificates through many different educational institutions and organizations specifically focused on accrediting bookkeepers. As a refresher, in cash basis accounting, income is recorded when you receive it. In accrual accounting, revenues and expenses are recorded when they are earned, regardless of when the money is actually received or paid. Make sure you’ve how much does bookkeeping cost considered every aspect of your business and included related costs. You’ll have a better chance at securing loans, attracting investors, estimating profits, and understanding the cash runway of your business. Many companies also incur some payroll expenses before launch because they need to hire people to train before launch, develop their website, stock shelves, and so forth.
Finding the Right Bookkeeping for Your Business
Geographic differences also impact rates, with some states having averages 28% above or below the national level. How much should you expect to pay now that you know the main factors that affect bookkeeping rates and the various pricing models used? While specific prices depend on your unique business circumstances, below are some overarching averages to use as general benchmarks when budgeting and evaluating options. Keep in mind that these are range-wide approximations, and your business may fall above or below the averages. Hopefully, you now have a better idea of what bookkeeping services you can afford and which services come with a lower or higher bookkeeper cost.
Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. 1-800Accountant assumes no liability for actions taken in reliance upon the information contained herein. Laura is a freelance writer specializing in small business, ecommerce and lifestyle content. As a small business owner, she is passionate about supporting other entrepreneurs and sharing information that will help them thrive. Sign up to receive more well-researched small business articles and topics in your inbox, personalized for you.
- You will need an advanced accountant to help you put together the financial intelligence to help you make sound business decisions.
- Let’s jump into the details and explore your options for bookkeeping as a small to medium sized business.
- Bookkeeping prices fall at the low end for small businesses, while large companies requiring daily bookkeeping services pay more.
- Bookkeeping serves as more of a preliminary function through the straightforward recording and organizing of financial information.
- Not to mention the fact that overwork can lead to burnout, which means time away from your business and clients.
