How Much Does A Bookkeeper Cost?

Managing a business is not a small task. It usually involves juggling inventories, growing your clientele, and supervising employees. Having a bookkeeper is certainly one of the most profitable investments you can make towards the growth of your company.

Why?

By ensuring your books are in order, you can save on tax issues, stress, and will give you a better idea of how and where you can increase revenue and improve efficiency in your organization.

So, whether you decide to hire a bookkeeper or outsource one, the importance of the position cannot be overemphasized. But how much exactly is a bookkeeper going to cost you?

How much should you be paying for bookkeeping every month?

The cost which a nonprofit or small business incurs from bookkeeping is dependent on several variables. Some of these variables include the number of monthly transactions, company size, credit card usage, number of expense accounts, number of balance sheets to reconcile, and the like. Apart from these basic bookkeeping activities, your cost will also hinge on how your current accounting systems, procedures, and policies are set up and managed.

In-house bookkeepers are typically compensated by the hour and could charge between $18 and $25 / hour +benefits and this may vary depending on experience. Outsourced bookkeepers, on the other hand, could be an ideal choice with fees beginning from $325 for basic plans each month. You will also have other options depending on the size of your organization. Also, you may find $425 for advanced packages, $500 for premium packages, and $900+ for Elite packages per month.

The above-mentioned costs are largely dependent on the transaction volume your organization handles per month.

To get an accurate estimate, contact Centrosome for a quote.

Cost of an in-house Bookkeeper

The average hourly rate for a bookkeeper is around $20. Factors to consider when comparing an in-house bookkeeper and an outsourced agency include source deductions, training, benefits as well as time-off.

An in-house bookkeeper may be a good idea for big businesses, but for smaller businesses it may not. Small businesses have to consider the fact that the cost of payroll, training, and possible inaccuracies are things they may not be able to afford. This thus makes the services offered by an outsourced bookkeeper more advantageous.

Cost of an outsourced bookkeeper

Engaging the services of an outsourced bookkeeping firm may appear like a big challenge at first. It can, however, prove to be quite cost-effective and a better solution to the challenges faced by your company. The cost of outsourcing your bookkeeping varies depending on the needs of your organization. You will benefit from things such as online access, a dedicated accounting team as well as monthly reconciliation.

An outsourced bookkeeper typically costs between $300 and $900 each month. Again, this is largely dependent on the volume of transactions carried out each month. Click here to learn more about outsourcing your bookkeeping needs.

The difference in hiring a cheap bookkeeper vs. paying a little bit more

There is always going to be a strong temptation to go for cost before quality when engaging the services of a bookkeeper. However, several differences come with either choice.

1. A cheap bookkeeper may not have as much experience and expertise required to properly managing the books of your business. Meanwhile, paying a bit more may simply save you the stress of engaging an inexperienced person. In most cases, you get more by paying more.
2. Most of the bookkeeping firms that charge far less often have credibility issues. Your financial records and books contain confidential information and as such, they should never fall into the wrong hands.
3. Paying more means you will be able to get your books done with increased speed and accuracy. This is because bookkeeping firms that charge more often have more experience and usually more than one person on the team. They will combine their wealth of experience to expedite the work.

What are the benefits of engaging an outsourced bookkeeper?

• With an outsourced bookkeeper, there won’t be a need to onboard or train new bookkeeping staff.
• Such bookkeepers often have a higher collective experience thus affording every business owner peace of mind.
• Outsourced bookkeepers offer advanced security solutions aimed at protecting your business financial data.
• It is a time and cost-effective solution and they offer integrated technology solutions for external and internal use.
• They are easily mobile and can provide you remote bookkeeping support and accounting data.

What to look out for before engaging a bookkeeper

Having discovered how much bookkeepers charge, you should do some analysis of your available options before you engage the services of one. To guide your decision, we have come up with three vital things you should consider if you are to get the best out of it.

Industry-Specific Account Management

Engaging the services of a bookkeeper who has a good grasp of your industry and the inherent regulations is an important thing to consider when searching for the right person for the role. For instance, businesses in the restaurant sector may need a different financial service to businesses in the property or hospitality industry.

When you are engaging the services of a person that comprehends your industry requirements and business needs, you will be able to save time on transitioning and training. You will also rest assured that your business is in good hands.

Integrated financial tools and software

Chances are that your business is already using software and tools for keeping your operations and records organized. However, incorporating more software into your operations may lead to more stress than you can handle. So whether you are outsourcing or hiring an in-house bookkeeper, ensure you find someone who has the right tools required to make financial management easier.

Revenue Growth and Tax Savings

One reason many people wonder how much a bookkeeper cost is that taxes can indeed be a scary undertaking and filing correctly for your business and yourself can be a rather huge challenge. There are different ways to file; different forms can be quite difficult to keep up with. Engaging the services of a good bookkeeper for your business regardless of size will ensure your business conforms to the regulatory authority. It will also ensure that you get the most of your taxes and returns.

In conclusion, hiring the services of a bookkeeper will not be the same for every business and the costs of bookkeepers can and will vary. Thus deciding on the type of bookkeeping services and what your business can afford is a good place to start from. Ensure you work with bookkeepers who will help you streamline your accounting process. They should also do their job well enough to allow you to prioritize your time on your passion and goals.

Next Steps

If you are ready to have a conversation with a professional bookkeeping firm to help out with your accounting needs, we would be happy to discuss some options with you. Click here to schedule a call with us.