How Much Does a Bookkeeping Service Cost?
Bookkeeping services have gained popularity because bookkeeping is a time consuming process and often prone to errors. It is important to know the difference between book keeper and accountant because despite the fact that the terms are used interchangeably but their job descriptions are vastly different.
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A bookkeeper has the tough and sometimes monotonous job of keeping track of the company's entire financial details. The person has to maintain records of revenue and expense information. The book keeper also generates a yearly report and makes the necessary adjustments.
Bookkeeping Service charges
The charges can be anywhere between $15 and $60 per hour and the number of hours spent in the book keeping every month largely depends on the size of the business and how the finances are structured.
Marking the Bookkeeping prices
There are different criteria to set the pricing for bookkeeping service. The agreements can be drawn by:
- Per Hour
- Per Page
- Flat Fee
- Fixed Price
There are some bookkeepers who have set a threshold hourly cost that they are paid at a minimum even if they don't do any bookkeeping. The average rate for bookkeeping can be around $15 to $60 per hour.
Advisory services in this regard can be more, and the charges are higher in rural setting.
Fixed Monthly charges
The monthly charge covers fixed number of transactions and also the preparation of the financial reports that are drawn on a yearly or quarterly basis. These charges range from $125 to $175 for book keeping services that work on fixed fee pricing plans.
Why go for Fixed Price Agreement?
Fixed price agreements are recommended because then the book keeper has to analyze the finances in details and present you with an annual price quote that is customized to meet your exact financial needs and challenges. Also, it is a good practice to interview the book keeper and get a consultation time and make it clear that you don't want to be charged for the few minutes that the book keeper spends with you to make recommendations.
Book keeping prices for Small businesses
- Typical cost varies from $3,500 - $6,000 inclusive of taxes and a one-time fee for setup
- Monthly charges include fee for a fixed number of transactions
- Costs also cover monthly financial discussions, reports, fiscal and interim financial reports and tax reports
Benefits of Bookkeeping Service
- Low Cost
- Allow full control and financial decision making
- Helps in keeping the financial records compliant with federal and state laws
- Keeps the financial records accurate
Services rendered by an Accounting firm
- Annual service for filing taxes
- Monthly service of keeping books and manage business finances
- Audit or reviews for investors and payers
Average cost for Book Keeping & Accounting
- Most services bill on an hourly basis that vary from one service to another
- Larger, more established firms charge a higher hourly fee as compared to the same services rendered by smaller firms
- CPAs can charge from $150 up to $250 per hour
- Tax accounting firm can charge up to around $500 per hour
- The owners of the firm can charge as high as $200 to $250 per hour
- Staff members and supervisors charge a lower cost of about $100 to $200 per hour.
- Junior employees of the firm can work at an hourly $60 to $120