How Much Does a Bookkeeper Cost? Bench Accounting

This post is to be used for informational purposes only and does not constitute legal, business, or tax advice. Each person should consult his or her own attorney, business advisor, or tax advisor with respect to matters referenced in this post. Bench assumes no liability for actions taken in reliance upon the information contained herein. As with all our accounting and HR solutions, this package is fully-customizable, no hassle, and you won’t find yourself locked into a long-term contract.

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. In this example, doing your own bookkeeping is more expensive than hiring a professional —  and a lot more expensive than using Keeper.

You’ll save money on your taxes

You will need to dedicate some of your time to audit their work on an on-going basis, and you may still be required to do more of the high-level accounting work, such as projecting and reporting. This is an added burden to any company owner who is also responsible for many other key areas of the business. Hiring a full-time bookkeeper https://www.bookstime.com/ at 40 hours per week at a rate of $14 dollar per hour (the low end of the average hourly cost cited above) will cost you $560 total for the week. Hiring a part-time bookkeeper at 20 hours per week at a rate of $17 dollars an hour (the high end of the average hourly cost cited above) will cost you $340  total for the week.

In recent months, professional services firms are facing more pressure than ever to deliver value to clients. So you now have an idea what to expect to pay for an in-house bookkeeper’s salary, with some caveats. Hourly wages/salary costs, however are not the full story for an in-house hire. The current average salary of a full-time bookkeeper revolves around $35,000 to $55,000 per year, adding on benefits and overhead, depending upon your location. One of the first departments to slip through the cracks is often bookkeeping and accounting.

What accounting services does Wishup offer?

See if they can integrate with your current bookkeeping software. The lower end of the range typically includes basic bookkeeping for a small business that only requires five or so hours of work per month. If you can get away with that, part-time bookkeeping services can be much more affordable than a full-time bookkeeper https://www.bookstime.com/articles/how-much-does-bookkeeping-cost working in house. On average, outsourced bookkeeping services cost anywhere between $500 to $2,500 a month for small and medium businesses depending on the hours you need each month. Not every business has the same bookkeeping needs as others, and their needs will likely change as the company experiences growth.

• It includes accurately recording all financial transactions such as purchases, sales, receipts, and payments.
• Determine how your prospective accounting partner prices their service and pick what is right for you.
• Hiring a bookkeeper that totally understands your industry and its regulations is an important distinction to make when you’re looking for the right person or team to fill the job.
• In this example, doing your own bookkeeping is more expensive than hiring a professional —  and a lot more expensive than using Keeper.

However, there’s no set cost for hiring a professional to manage your business’s finances. 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. So, don’t be afraid to boast about your experience while marketing your accounting firm.

The Indirect Costs of DIY Bookkeeping

As a business owner, you’re acutely aware of how precious a commodity time is. But what you might not realize is that putting bookkeeping off can cost exponentially more time. 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.

They are typically performing the basic duties of a bookkeeper and needs to be supervised. You’ve got both income and expenses to worry about as an owner, and keeping it all together can sometimes seem impossible. Mismanagement of your business’ money could mean less room for growth, and lack of productivity. Hiring a bookkeeping expert to help manage the ever so important nitty-gritty details of your accounts can save you time, and allow you to refocus your energy on profit growth and business strategy.

Fixed Monthly Price

It’s a better idea to have someone do it for you, since your time is more valuable elsewhere. So let’s break down the various bookkeeping options, who they’re best for, and how much you’re likely to spend on them. An in-house bookkeeper will often cost you more than an outsourced bookkeeper, although hiring one so gives you more oversight and control over your bookkeeping. Bookkeepers keep track of a business’s earnings and expenses, ensuring all financial records are in order.

Virtual bookkeepers are real humans that will do your books for you — just online. Some popular virtual bookkeeping services are Bench, QuickBooks Live and Bookkeeper360. They usually just specialize in bookkeeping, but will sometimes offer tax compliance and other accounting services as well.