How Much Do Bookkeeping Services for Small Businesses Cost?

To get you started, we’ve collected a chart below of the average hourly wage for bookkeepers in each state. Keep in mind that these are averages, for the entire state – in large, diverse states, local salaries might vary a lot from the statewide average. For example, salaries in San Francisco or Los Angeles are likely to be significantly higher than in Redding or Bakersfield, even though they’re all in California. For this client, I do some tallying of their hourly employee amounts and then note how much is deducted for their health insurance and retirement savings. All I need to do is fill out the spreadsheet, and then I send it off to the payroll department. Another extra task that I do for this client is to write checks for this preschool, so I am a signer on the bank account.

• Hiring a part-time bookkeeper when first establishing a business is a smart investment.
• This can reach as high as $70,000 per year in expensive cities like L.A.
• Danielle is a writer for the Finance division of Fit Small Business.
• Charging hourly for your services is one of the most commonly-known methods.

Plus, we have a range of pricing plans for you to choose from – so you can pick the one that best suits your business. These services usually charge flat rates, which makes budgeting simple. Virtual bookkeepers are typically best for people who are just looking for a bookkeeper and don’t need full-service accounting help like payroll, budgeting, and forecasting. But you should be aware of which levels of an employee are performing each task.

Bookkeeping services cost: Bottom line

There 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. The average salary for a bookkeeper in the United States in 2018 is around $14-$17 per hour (per Indeed) which is about $2,400 to $3,000 per month. The average annual salary for bookkeepers is between $37,000 to $47,000 (per Salary.com). In addition bookkeeping for startups to the hourly charges, state & federal laws will also likely require you to pay for the employee’s benefits such as health insurance and vacation time. These benefits add a significant amount to the annual cost of an in-house bookkeeper. Along with considering the above factors when setting your pricing for bookkeeping services, you’ll also want to set up a pricing structure that works for you and your firm.

Danielle is a writer for the Finance division of Fit Small Business. She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years. Too many self-employed workers, startups, and business owners miss out on write-offs that can save them a lot of money.

What to Look For in a Bookkeeper

Finding the right virtual bookkeeping service depends on the business and its end goals for bookkeeping and accounting. At the very start, every small business should set up a basic bookkeeping program, which is available with a virtual bookkeeping service. In addition to the monthly bookkeeping charge, you should also charge a one-time setup fee to set up the client’s books. This is especially important if you choose fixed monthly fee pricing, as the setup can be time-consuming and outside the scope of monthly bookkeeping. Hiring a bookkeeper can vary depending on the size of the business and the experience of the bookkeeper. But generally, bookkeepers either charge an hourly rate or a monthly fixed fee.

To be honest, I’ve never done it that way, so I’m not as familiar with what the rates would be for this type of pricing. If you’re interested to learn more, Google it, and I’m sure a plethora of information will show up. Many bookkeepers charge their clients for initial consultations because it gives them a chance to look at the books. This gives them an opportunity to let the client know just how much they will need to charge to take over their bookkeeping. 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.

Factors to consider when determining your bookkeeping rate

Chances are, clients are going to be more willing to pay an accounting firm more money over another if they have more experience. Do your research ahead of time to find average rates for services in your state. If needed, make adjustments to your pricing to reflect costs in your locality or state.