How Much Should I Charge for Bookkeeping Services? Averages & More

From branding and marketing to inventory and tracking financial records, these tasks can quickly become overwhelming. In recent months, professional services firms are facing more pressure than ever to deliver value to clients. These industries generally provide specialized services to clients that do not employ bookkeepers internally. In 2020, they combined to account for more than 11.5% of all bookkeeping, accounting, and auditing clerks working in the United States.

• For example, let’s say you spend about five hours a month on bookkeeping, and your average hourly rate is $75.
• Bookkeepers also make sure businesses are adhering to VAT rules and regulations.
• You’ll usually pay for bookkeeping services in one of the three ways—hourly, salary, or a flat fee.
• Government data indicates that the labour market for this occupation is expected to remain balanced for the near future.
• The But the Books branding is designed to emphasise that human side, so that businesses can be confident their bookkeepers really know their business and want to help them succeed.
• Average entry-level salaries approach $38,000 per year, according to Payscale.
• The hourly rate ranges from $43.40 in Massachusetts to $29.21 in Mississippi.

Don’t forget, as a bookkeeper, you should have a specific expertise. Anytime you can niche down and be specialized in a specific area of bookkeeping, you’ll be able to charge more money for your services. As a contractor, the main thing that you are saving an employer–or your client in this case–is TAXES! They have to pay so much more in social security, Medicare, worker’s compensation, and unemployment taxes for an employee. When you work for a company, and they give you a W-2, they are paying a bunch of money to have you working for them. Take your hourly rate times the amount of time you believe it is taking you each month and add a little more on top of that for added expenses.

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A freelance bookkeeper’s level of education and any certifications they have obtained, such as QuickBooks ProAdvisor, are also a factor in determining the hourly rate. Specializing in additional services like payroll or having expertise in a certain accounting application can also be a factor. In addition, the frequency and type of services needed can impact the hourly rate. Smart business owners know that sometimes it makes more sense to outsource certain jobs – such as bookkeeping. But with the average salary of a bookkeeper coming in at more than $40,000 per year , many businesses simply can’t afford to keep a full-time bookkeeper on staff. With a virtual bookkeeper that costs as little as $4.99 per hour, you can keep your financial house in order without breaking your budget. Like traditional bookkeepers, online bookkeeping services employ a number of professional bookkeepers to provide their clients with books service.

• Other factors, such as education level, experience, and certifications, can also push a bookkeeper’s hourly rate much higher.
• Bookkeepers can report analysis from those numbers and enable businesses to make better informed decisions based on their finances.
• Our article about the best small business accounting software reviews some of the top options on the market.
• They assume it is just a few hours a week and will not take too much time away from their business and will save them the bookkeeping expense.
• The most obvious cost for this option is salary, which can vary a lot by location.
• Credentials like the CB and CPB certifications may also help bookkeepers develop the superior skills that boost their overall compensation rates.

”, you may be surprised to find them considerably higher than a bookkeeper. Although bookkeeping may not be the most exciting part of running a business, it’s arguably one of the most important. Accurate https://www.bookstime.com/ and timely bookkeeping allows you to make sound financial decisions. With decades of proven experience in accounting and HR, Milestone is standing by to support you and help your business grow.

How much does it cost to outsource bookkeeping?

In September 2022, Payscale reported an average annual base salary of about $50,430 for full-charge bookkeepers. The U.S. Bureau of Labor Statistics groups bookkeepers with accounting and auditing clerks in its job-related data.

Getting a good bookkeeper and you pay them dirt cheap isn’t ideal because you want professionals. These are your assets and those skilled with handling the software and hardware you require are going to be asked to get paid fairly high. The But the Books branding is designed to emphasise that human side, so that businesses can be confident their bookkeepers really know their business and want to help them succeed. That day-to-day monitoring can provide valuable information for businesses, and in turn help them to get the best out of what they have. Edward says there’s also a benefit to having two financial professionals look through the accounts, rather than just one. As a bookkeeper , we are completely qualified to prepare and file Sales Tax Returns & Payroll Tax Returns.

Experience

In addition to these basic bookkeeping activities, your costs will be impacted by how your accounting systems, policies and procedures, and reporting needs are set up and administered. For clients with more than $1 million in revenue, it would be good to look at how much they would pay a full-time bookkeeper, sitting in their office, working 40 hours a week. bookkeeping services pricing Freelance bookkeepers work with numbers and use accounting principles to maintain financial information. Freelance bookkeepers work with a variety of companies usually small companies and Start ups. Read about how professional freelancers often require the services of a bookkeeper. Freelance bookkeepers often work from home and have a flexible schedule.

• Make a list of all the services you’ll be needing as well as how frequently you need these tasks done.
• A freelance bookkeeper works as an independent professional for several different businesses and is considered a self-employed independent contractor.
• The institute also has certification programs for bookkeepers at more than 200 colleges.
• Bookkeepers can handle many financial aspects of your business such as generating financial reports, handling accounts payable/receivable, and handling payroll.
• In general, good cloud-based software makes accounting easier and reduces the hours, allowing you to charge more per hour.