Understanding the Cost of Bookkeeping for Small Businesses

Outsourcing bookkeeping services typically cost between $300 and $5,000 per month (or more), depending on the size of your business and the specific services they provide. Maybe the freelancer is experienced in a single software and charges a lower rate for it. You can also find experts in numerous accounting software that charge more. The more experienced the bookkeeper, the more confident they are with their skills. As a result, they come with a higher monthly cost for business owners. FreshBooks is an invoicing and accounting software for small businesses.

1. As a result, the monthly fee can fluctuate, making it hard for your clients to budget accurately, and may lead to some eyebrow-raising when they receive an unexpectedly high invoice.
2. At BELAY, our current length of service with our bookkeepers is 25 months – though we have many bookkeepers that have been with us five years and more.
3. The more qualified the professional, the more they are likely to charge for their service.
4. To set the correct pricing, you need to start by assessing the various factors that affect your rate.

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… Since the information gathered in bookkeeping is used by accountants and business owners, it is the basis of all the financial statements generated. Most accounting software allows you to automatically run common financial statements such as an income and expense statement, balance sheet and cash flow statement. Business owners or accountants can then use these statements to gain insight into the business’s financial health.

Cash-Based Accounting

These professionals do a lot of different things, but not every bookkeeper does every service, or they may charge extra for specific tasks. Hiring a freelance bookkeeper typically costs between $25 and $45 per hour, depending on their cost of bookkeeping services for small business skill level and the services they provide. The amount of work and nature of your business may also impact the rates. For example, there are smaller, independent bookkeepers that specialize in certain services or business types.

Frequently Asked Questions

Most accounting software does this for you, so you don’t need to worry about an extra step. When doing the bookkeeping, you’ll generally follow the following four steps to make sure that the books are up to date and accurate. Remember that each transaction is assigned to a specific account that is later posted to the general ledger. Posting debits and credits to the correct accounts makes reporting more accurate. However, as your business grows, you’ll find that your time becomes much more valuable and a scarce resource. Hiring a bookkeeper can help ensure your records are accurate, your books are balanced, and your invoices are paid on time without you having to do the work yourself.

What Do Bookkeepers Do?

For example, balancing a bank account that has thousands of transactions will take more time and cost you more than an account with 100 transactions. The bookkeeper’s exact services will also impact the cost, along with how experienced the bookkeeper is and their reputation. Discover the 4-step process used by hundreds of firm owners to double your prices (as soon as today) without increasing workload. Discover the direct correlation between standardized processes and boosted profits for your accounting firm. Templates, workflows and automations all give you time back in your day that you can spend building your client base and adding value for existing clients. With the right technology, you can automate bookkeeping processes and tasks that once took hours of your time.

Value-based pricing

Don’t be fearful of having conversations about raising rates with long-term clients. If they value your relationship and the service you provide, they’ll understand why you make  occasional and reasonable increases. With tech taking up so much airspace in modern accounting, those who are fluent users are quickly outpacing those who aren’t. In a survey by PracticeWeb, 66% of clients surveyed said they would pay more for a ‘tech-savvy’ accountant.