If the value of your time is more than the cost of bookkeeping, then hiring a pro is probably worth it. If you fail to keep accurate monthly records throughout the year, a CPA won’t always provide them retroactively. And as we mentioned, without these records, you won’t know how much do bookkeepers charge where your finances stand. One of the first departments to slip through the cracks is often bookkeeping and accounting. Even if you’re “not a numbers person,” or even running a not for profit operation, there’s no denying that it’s cash flow that keeps your business afloat.
Type of Services Provided
First, let’s talk about what bookkeepers usually expect to get paid. The American Institute of Professional Bookkeepers gives us a good idea of how much. On average, bookkeepers might want to charge around $25 per hour. But this can change a lot depending on where the bookkeeper works or how much experience they have. This rate helps both bookkeepers and those who need a bookkeeper figure out a fair price. Finding out the hourly rate for bookkeeping is like opening a treasure chest; you never know exactly what gems you’ll find until you look inside.
questions to ask yourself before hiring a bookkeeper
Part of the advantage of a professional service is that it can save you money by reducing the time spent on basic tasks. It can also help you to better track your spending and analyze potential financial hazards. Based on a recent Bureau of Labor Statistics (BLS) report, the median hourly rate for a bookkeeper is $21.90 per hour. Again, this doesn’t account for location, expertise, or services.
- “So then why wouldn’t I hire an accountant who could handle all of the above?
- Depending on the type of industry and your income goals, you can offer full-charge services, including payroll, managing fixed assets, and contributing to advisory conversations.
- Clients may be willing to pay more for these specialized services due to the expertise required.
- For this reason your costs with a traditional firm can vary a lot, even between months.
- A recently certified accountant may charge $50 to $150 per hour, while Certified Public Accountants (CPAs) with 10+ years of experience sometimes charge up to $1,000 per hour.
- There are four main pricing models you can use for your bookkeeping services.
How Much Does a Bookkeeper Cost for Self-Employed Workers?
Therefore, you generally want to charge a small client less because they have fewer needs. At some point or another, you may have clients of all sizes—aka small, medium, and large clients. And when one client’s size is larger than another client, you’re going to want to price services accordingly. As you might have figured out from the sheer volume of this post, it’s a topic I spend a lot of time thinking about. Based on my research with fellow bookkeepers, there isn’t one (or two, or three) answers either.
- The range swings from $18 to $25 per hour, and there’s a lot of room for growth beyond the $25/hour figure.
- Some bookkeepers charge $200 to $1,000+ per month for part-time services or $3,200 to $5,800 per month for full-time services.
- Simple tasks might have lower rates, while tough jobs that need lots of skill could cost more.
- Thanks to secure file sharing and document uploading, your clients can feel comfortable sharing receipts and personal financial documents.
- Regardless of the solution you choose, you’ll be taking a big step towards getting your time back, and building a financial foundation to help your business continue to grow.
This individual pays attention to details, is proactive in understanding financial statements, and is willing to expand their knowledge further. A problem-solver at heart, the candidate quickly seeks assistance when needed and leverages technology to enhance efficiency and adaptability. Prices matter when it comes to running a business, but a bookkeeping service is not a place where you want to cut corners.
Questions to ask a bookkeeper
They require the least amount of education and focus on recording transactions, whereas an accountant or CPA spends their time analyzing financial data and generating financial statements. Depending on the type of industry and your income goals, you can offer full-charge services, including payroll, managing fixed assets, and contributing to advisory conversations. Your value also rises when you’re better https://www.bookstime.com/ at customer service and data accuracy, finding holes, and asking good questions. 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 September 2022, Payscale placed the national U.S. average rate for bookkeepers at $18.46 per hour.
Variations in Hourly Rates Based on Services Offered
Outsourced bookkeeping comes with none of the a la carte overhead expenses. Let’s compare the cost of an in-house bookkeeper vs. an outsourced bookkeeper. But keep in mind that these numbers are industry averages, and are subject to variables, like your location.
Bookkeeping services cost: Bottom line
Clients may be willing to pay more for these specialized services due to the expertise required. If you want your books to be taken care of without direct management by you, outsourcing is the way to go. A traditional bookkeeper will usually charge you an hourly rate to do your books each month. The total cost will depend on how long it takes them to do the work. For this reason your costs with a traditional firm can vary a lot, even between months.
Feel confident from day one
However, as bookkeeping and accounting software tech stacks have evolved, adopting the hourly pricing model might mean leaving money on the table. Let’s tease this out this with a very straightforward example. There are four main pricing models you can use for your bookkeeping services. Explore each model to determine what will work best for you and your clients. Finally, the breadth of services you provide is a huge part of figuring out your bookkeeping pricing packages.
Some bookkeepers have a set fee they ask for every hour they work, which we call an hourly fee. Others might set prices based on the kind of bookkeeping services they offer. For example, doing simple math for a small shop might cost less than handling big money tasks for a large company. Freelance bookkeepers charge based on what they offer and how complex the job is. Quoted rates at online providers offer the advantage of predictable costs, avoiding unexpectedly high hourly fees. Now that you know the answer to the question “How much does a bookkeeper cost?
