Understanding the Cost of Bookkeeping for Small Businesses

These kinds of fees can weigh into pricing, and may account for monthly, annual, or one-time costs. 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. 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. The only drawback of paying a full-time accountant is that you may need to offer them employee benefits.

To get a more accurate understanding of the cost, it is recommended to contact bookkeepers or accounting firms directly and provide them with specific details about your business and services required. They can then provide a customized quote based on your unique needs. The charges for bookkeeping services for painting contractors can vary widely based on several factors. These include the complexity of the business’s financial activities, the volume of transactions, the level of experience and expertise of the bookkeeper, and the specific services required. Some bookkeepers charge on an hourly basis, while others may offer fixed-rate packages based on the scope of services. Some businesses might need only basic bookkeeping services, while others may require more comprehensive financial management, including payroll processing and tax preparation.

How Much Does a Bookkeeper Cost for Self-Employed Workers?

As great as it is to talk about potential bookkeeping costs and get estimates, we know that seeing an actual average for your state can yield excellent value for you as a business owner. Please see the chart below with data pulled directly from the US Bureau of Labor Statistics 2022 data to learn more about the average salary and hourly rate for bookkeeping. Perhaps the most cost-efficient option for bookkeeping for a small business is hiring a third-party firm that specializes in outsourced bookkeeping solutions. There bookkeeping services pricing is a number of key advantages to outsourcing your bookkeeping, including lesser costs, greater value for every dollar spent, and other tangible business-related factors. Hiring a full-time bookkeeper at 40 hours per week at a rate of $14 dollar per hour (the low end of the average hourly cost cited above) will cost you $560 total for the week. 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.

• Bookkeeping still offers a stable career path that does not demand advanced degrees or extensive training.
• If you’re a Wishup customer, you’ll have access to a dedicated account manager who will be your go-to person for any questions or concerns you may have.
• Perhaps the most cost-efficient option for bookkeeping for a small business is hiring a third-party firm that specializes in outsourced bookkeeping solutions.
• And in turn, these certifications can increase your expertise (and your pricing).
• Our VAs possess over 200 skills and capabilities and are trained in 70+ no-code tools.

Hourly rates can range from $20 to $60 per hour, with the average rate being around $40 per hour. If you decide to go with an hourly rate, make sure to ask for an estimate of how many hours per month the bookkeeping will take so that you can budget accordingly. With Wishup, you get an efficient and affordable bookkeeping service, hassle-free hiring, and no extra training required. Plus, we have pocket-friendly hourly rates for bookkeepers, and you can rest assured that your data is safe.

Outsource Your Accounting – Focus on Your Business

If you would like a tax expert to clarify it for you, feel free to sign up for Keeper. There’s less of a clear-cut answer when it comes to the cost of outsourcing a bookkeeper. Whether you’re a self-employed professional, a business with employees, a business with contractors, or a freelancer, you can benefit from FreshBooks’ services. 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. Today, finding a competent and qualified bookkeeper at a reasonable price is tricky.

You’ll be able to gauge how much time you think it will take to do their books each month. It’s reasonable for a new bookkeeper to charge around $40 an hour, but you’ll need to do some research in your area to make sure that is a good starting point. From there, you can raise your rates as you gain more experience, and many top out around $80 or more an hour. At Milestone, we offer a tiered approach, offering foundation and growth packages.

Client doesn’t have to provide benefits

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. If you’re a small business owner who is great with numbers, spreadsheets, and organization, doing your own bookkeeping may be an option. While this option can save you money—you don’t need to hire someone else—bookkeeping takes up valuable time. Recent reports estimate that small- and mid-sized businesses spend roughly 5% of their time on administrative tasks like bookkeeping and accounting. That might not seem like much, but that’s over 100 working hours a year that could be better spent on your business.

But it can still be overwhelming to handle your financial recordkeeping on your own. On the other hand, larger companies with a higher volume of complex transactions will need more hours. An outside bookkeeper will charge them at the higher end of the range. You’ll find that bookkeepers who have completed all 3 programs have a much higher average hourly wage. In a nutshell, a bookkeeper records your financial transactions and collects information to create general financial reports.

Accounting System Design & Implementation

If basic bookkeeping is all that your company needs at this stage, you’ll need to decide whether to do the bookkeeping in-house or if you should outsource. If you decide to hire and manage a bookkeeper you’ll also have to decide whether the position is part-time or requires full time. If you decide to outsource, there are a few ways to go including local bookkeeping services, local CPA firms that offer bookkeeping services and specialized, national outsourced bookkeeping firms. Let’s look into three different options your company could consider to fill this need… Like a traditional firm, an online provider puts your books in expert hands, without requiring you to spend time on direct oversight. If you want to have your books handled by a professional with regular, predictable costs, consider working with an online provider.