Don't Do It Yourself
How Much Does a Bookkeeper Cost

How Much Does a Bookkeeper Cost?

Managing the finances of a business can be complex and time-consuming and, honestly, just too much if you’re not mathematically inclined.

But can you afford to pay someone else to do it for you?

Let’s find out.

Colson Strategies Logo
Get $50 Off
Get $50 Off if you mention DDIY when signing up

I'm a control freak and afraid to trust anyone with my financials. The exception is Colson Strategies who has become a dependable partner. They really know their stuff and are super-friendly. 

  • Outsourced Bookkeepers, CFOs, and Controllers
  • Get expert advice for better financial decisions
  • 100% women-owned business

Average Bookkeeper Salary

Average Bookkeeper Salary

The national average salary for bookkeepers in the United States is $42,488 per year.

The average range is somewhere between $37,761 and $47,240.

This figure can vary depending on experience, qualifications, and location. For example, bookkeepers in New York City tend to earn higher salaries than those in rural areas of the country.

Regional Variations

When it comes to regional variations, some states pay more than others.

In California, the average annual salary for a bookkeeper is around $47,000 while in Texas it’s closer to $41,000.

Other states with higher-than-average salaries include Massachusetts ($46,000), Illinois ($43,000), and New Jersey ($47,000).

Hourly Rates

Bookkeepers who work on an hourly basis typically charge between $20 and $50 per hour depending on their level of expertise and experience.

Those who specialize in certain areas such as payroll or tax preparation may command even higher rates due to their specialized knowledge base. I

It’s important to note that most employers will require at least two years of experience before they hire someone as a full-time bookkeeper so keep this in mind when negotiating rates with bookkeepers.

Accounting Firms

Consider working with an accounting firm or professional association if you want access to experienced professionals who can help you manage your finances properly and efficiently.

These organizations often offer competitive rates compared to hiring an individual freelancer which could save you money over time while still providing quality service from qualified professionals who understand the complexities of financial management systems like QuickBooks or Xero Accounting Software Suite (XAS).

The cost of a bookkeeper can vary significantly depending on location, qualifications, and experience.

To get an accurate estimate of the cost for your particular situation, it is best to compare rates from local professionals.

Factors That Affect Bookkeeper Cost

Factors That Affect Bookkeeper Cost

The cost of hiring a bookkeeper can vary greatly depending on several factors.

Level of Experience

One of the most important is experience level. A more experienced bookkeeper will typically charge higher rates than someone who is just starting in the field.

Additionally, different types of businesses and industries may require specialized knowledge that can increase costs as well. For example, an accounting firm might charge more for its services than a small business or startup due to the complexity of its work.

Size of Your Business

The number of employees and transactions handled by a bookkeeper also affect cost.

Bookkeepers with larger workloads tend to charge higher fees since they must spend more time managing accounts and records.

On the other hand, smaller operations may be able to get away with lower rates since they have fewer clients or transactions to manage each month.

Part-Time Vs Full-Time

Finally, some businesses choose to hire part-time or freelance bookkeepers instead of full-time staff members to save money on payroll expenses such as benefits and taxes.

However, this option usually requires additional oversight from management for financial records and reports to remain accurate over time. If not managed properly, this could add extra costs down the line.

Overall, the cost of a bookkeeper can vary significantly depending on their experience level, the type of business or industry they are working in, and the number of employees or transactions that need to be handled.

Benefits of Hiring a Professional Bookkeeper

Benefits of Hiring a Professional Bookkeeper

Hiring a professional bookkeeper can be a great asset to any business.

Bookkeepers are responsible for maintaining accurate financial records and reports, which is essential for the success of any business. With their help, businesses can save time and money while improving efficiency and productivity.

Accurate Financial Records and Reports – Professional bookkeepers provide accurate financial records that are essential in tracking income, expenses, profits, losses, taxes owed or refunded, assets owned by the company as well as liabilities such as loans or debts owed to creditors.

They generate reports on cash flow analysis which helps businesses make informed decisions about investments and other activities related to finance management.

Time Savings for Business Owners – By hiring a professional bookkeeper instead of doing it yourself or delegating it to someone else within your organization who may not have experience with accounting tasks can save you time from having to learn all the necessary skills required for this job.

Professional bookkeepers have specialized knowledge when it comes to managing finances efficiently, which leads to improved efficiency in operations due to better record-keeping practices being implemented throughout the entire organization.

Colson Strategies Logo
Get $50 Off
Get $50 Off if you mention DDIY when signing up

I'm a control freak and afraid to trust anyone with my financials. The exception is Colson Strategies who has become a dependable partner. They really know their stuff and are super-friendly. 

  • Outsourced Bookkeepers, CFOs, and Controllers
  • Get expert advice for better financial decisions
  • 100% women-owned business

FAQs

How much should you pay someone to do your bookkeeping?

Though the cost of bookkeeping services can vary greatly depending on the size and complexity of your business, generally, you should expect to pay anywhere from $20-$50 per hour for basic bookkeeping tasks such as data entry, accounts payable/receivable, payroll processing, and financial reporting.

Is it worth it to hire a bookkeeper?

Yes, hiring a bookkeeper can be a great way to ensure your finances are managed properly and accurately, saving you time and money in the long run.

Is a bookkeeper cheaper than an accountant?

Yes, a bookkeeper is often cheaper than an accountant, since their job is primarily to keep records rather than perform advanced analytics and consulting as an accountant does.

How much should monthly bookkeeping cost?

Generally, you should expect to pay between $500-$2,500 per month for basic bookkeeping services such as accounts payable/receivable, payroll processing, bank reconciliations, and financial reporting.