As a small business owner, you might be wondering, “How much does a bookkeeper cost?” It’s a common question and one that doesn’t have a straightforward answer.
The cost of bookkeeping services can vary depending on several factors. Whether you’re just starting out or looking to streamline your finances, understanding the costs involved is key.
In this post, we’ll break down the factors that affect the cost of hiring a bookkeeper and show you how HireNCS can provide cost-effective, tailored bookkeeping services for your business.
What Does a Bookkeeper Do for Your Small Business?
Before we dive into the costs, let’s first talk about what a bookkeeper actually does. A bookkeeper manages the day-to-day financial transactions of your business.
They track expenses, record income, manage invoices, and ensure everything is up-to-date for round the year. It helps smooth your tax filing.
Here are some of the key tasks a bookkeeper handles:
- Record financial transactions: Keep track of income and expenses.
- Reconcile accounts: Ensure your bank statements match your books.
- Prepare financial reports: Provide reports that show where your business stands financially.
- Payroll management: Make sure your employees are paid correctly and on time.
Without proper bookkeeping, your financial records could quickly become a mess. And that’s where a bookkeeper comes in.
What Factors Affect the Cost of Bookkeeping Services for SMBs?
The cost of hiring a bookkeeper depends on several factors. Here’s a quick breakdown:
1. Business Size
Larger businesses with more transactions will likely pay more. If your business has complex financial needs, such as multiple revenue streams or frequent transactions, the cost may be higher.
2. Industry Type
Different industries have unique bookkeeping requirements. For instance:
- eCommerce businesses might need help with inventory tracking and online sales.
- Real estate businesses often require specialized reporting for properties, leases, and commissions.
- Technology companies may have more complicated tax needs due to R&D credits or international transactions.
3. Service Type
You can choose from various bookkeeping options:
- In-house: Hiring a full-time or part-time bookkeeper to work in your office.
- Outsourced: Hiring a remote bookkeeper or bookkeeping service.
- Virtual: Working with an online bookkeeper who handles everything remotely.
Each option has its own pricing structure.
How Much Does a Bookkeeper Cost? (Pricing Breakdown)
Now, let’s break down the pricing. It’s important to note that rates can vary based on the services you need and where you’re located.
Hourly Rates
The average cost of a bookkeeper working by the hour ranges from $30 to $100 per hour. The more complex your financial needs, the higher the rate. If you need a bookkeeper to handle payroll, taxes, and financial reporting, you might expect to pay toward the higher end of this range.
For example: If your small business needs 5 hours of bookkeeping services, here’s how the cost would break down depending on the rate:
- Low end ($30/hour):
5 hours x $30 = $150 - High end ($100/hour):
5 hours x $100 = $500
So, for 5 hours of work, depending on the complexity of the tasks, you could expect to pay anywhere from $150 to $500.
Monthly Rates
For businesses that need regular bookkeeping services, many bookkeepers offer monthly packages. These can range from $300 to $3,000+ per month depending on your business size and the services provided.
Here’s a rough guide:
- Basic services: $300 – $500 per month for small businesses with simple needs.
- Mid-range services: $500 – $1,500 per month for businesses with moderate complexity.
- Advanced services: $1,500+ per month for larger businesses with more complex financial operations.
Monthly Rates Example:
Let’s say your small business requires 10 hours of accounting services each month. Here’s how the costs might break down, depending on the complexity and the hourly rates of the bookkeeper:
- Basic Services (at $30/hour):
10 hours x $30 = $300 per month - Midrange Services (at $50/hour):
10 hours x $50 = $500 per month - Advanced Services (at $150/hour):
10 hours x $150 = $1,500 per month
The final cost will depend on the complexity of your operations, the expertise of the bookkeeper, and the scope of services required. More experienced or specialized bookkeepers typically charge higher rates, especially if your business needs advanced services.