Depending on the amount of work involved, you can hire either a full-time bookkeeper or a part-time bookkeeper. Typically, you’ll want to charge your more frequent clients at a lower rate because you’re seeing them more often and reviewing their books on a regular basis. For one-time clients, you may decide to charge more since you know they may not return and have last-minute requests and needs.

Bookkeeping can help you maintain your financial records, track expenditures and revenue, and provide an up-to-date snapshot of the growth and overall health of your business. With an organized bookkeeping process, you’ll have all your financial documents in order and be better prepared for tax season. One of the biggest advantages of outsourcing your bookkeeping is the cost.

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By taking the time to consider all of these factors, you will be able to determine how much to charge for your bookkeeping services. The key to accurately pricing is understanding and showcasing your value to your clients and prospective clients and then price your worth appropriately. This means you will set one price for all your bookkeeping services.

• The service doesn’t include financial advisory services, tax advice, facilitating the filing of income or sales tax returns, creating or sending 1099s, or management of payroll.
• To illustrate what a medium client looks like, I’ll be using a law firm I do bookkeeping for that generates about $800k in revenue a year.
• For example, a client with about $500k in revenue, she would charge $650 a month as a bookkeeper.
• But it can still be overwhelming to handle your financial recordkeeping on your own.

There’s less of a clear-cut answer when it comes to the cost of outsourcing a bookkeeper. The Xendoo team can also save you money by ensuring all your expenses are properly tracked so there are no surprises when it comes time to file taxes. We’re familiar with all the small business tax deductions and compliance requirements. Hourly pricing is a great option when you only need help with the books occasionally. You can hire someone to come in on a per-project basis and only pay for the time they spend on the project or for an agreed-upon time.

Find a Professional Bookkeeper

If you can get away with that, part-time bookkeeping services can be much more affordable than a full-time bookkeeper working in house. Firms offering outsourced bookkeeping services tend to also be flexible to make sure their solutions fit your specific needs. These firms specialize in bookkeeping and accounting, so their specialists will likely be more experienced and provide greater expertise than hiring an in-house bookkeeper. Our customizable Foundations Package for accounting starts at $250 per month and offers a range of functions, including bookkeeping services, bank/credit card reconciliations, and payroll.

It allows you to charge more for more valuable services to your clients, which can result in higher profits. A small business client will have different bookkeeping needs than a large corporation. You will need to consider the number of employees, the number of bank accounts, the type of business, and the annual revenue when pricing your services. Will you provide services once or on a monthly, quarterly, or annual basis? The more frequently you provide your services, the higher your rate can be.

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It varies depending on the type of financial expert you hire and the particulars of your business. Now, you may have an accountant that also completes the tasks of a bookkeeper, but not the other way around. Accountants must meet specific education and certification requirements that vary slightly by state. In general, accountants usually need a bachelor’s degree in accounting and pass a CPA exam in their state.

• NEWITY knows how helpful this consistency can be for small businesses, which is why we partnered with Xendoo to bring flat fee bookkeeping services to our small business members.
• The use of a remote bookkeeping service also eliminates a lot of costs for a company.
• With Wishup, you get an efficient and affordable bookkeeping service, hassle-free hiring, and no extra training required.
• While a bookkeeper might charge between $30 and $90 per hour, the hourly cost for an accountant can be between $150 to $450 per hour.

Integration between multiple accounting platforms makes keeps all your data in one place and makes bookkeeping quicker and easier. Hourly may bookkeeping for startups seem like the cheaper option, but it isn’t always the case. If you need more bookkeeping than you expected, those hours can add up fast.

Advantages of Hiring a Bookkeeping Assistant

If you’re looking at an online bookkeeping service, verify their ratings. Ask how long they’ve been in business, and whether they have accountants on staff to help with the bigger questions. Based on a recent Bureau of Labor Statistics (BLS) report, the median hourly rate for a bookkeeper is $21.90 per hour. Most bookkeepers that charge an hourly rate are freelancers, but not always.

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 Salary.com, the average bookkeeper salary in the United States is $45,816. It also assumes the bookkeeper is entry-level with no specialized experience or qualifications. However, there’s no set cost for hiring a professional to manage your business’s finances.