Understanding the Cost of Bookkeeping for Small Businesses

The more you offer, the more you need to reconsider the price you charge for bookkeeping services to ensure you’re charging clients the right amount for your services. They require the least amount of education and focus on recording transactions, whereas an accountant or CPA spends their time analyzing financial data and generating financial statements. Hopefully, you now have a better idea of what bookkeeping services you can afford and which services come with a lower or higher bookkeeper cost. Consider investing in simple software like FreshBooks for additional help in handling your finances without breaking the bank. Outsourcing bookkeeping is a good option when you could use a hand hiring a bookkeeper for keeping track of a part of your financial management.

• Small businesses and even mid-size companies don’t always hire the best talent to handle their daily and monthly bookkeeping responsibilities.
• Although bookkeeping may not be the most exciting part of running a business, it’s arguably one of the most important.
• Outsourcing accounting services allows you to reap the benefits of an accountant without the costs of a full-time employee, such as insurance and other benefits.
• These integrations make it easy to track your bookkeeping and accounting data in one place.

In this case, not hiring a bookkeeper would actually cost you nearly $100 dollars a month. In this post, we’ll compare the actual cost of hiring a bookkeeper versus the costs you could incur how much does bookkeeping cost by doing it all yourself. Kimberlee Leonard has 22 years of experience as a freelance writer. Her work has been featured on US News and World Report, Business.com and Fit Small Business.

The 10 steps of value pricing

For more information, check out the best online bookkeeping services for small businesses. Outsourcing also offers many benefits that you can’t get with an in-house bookkeeper. If you’re growing, the outsourced bookkeeping service should be able to help you scale by adding full service accounting when you are ready for it. While larger enterprises can afford to pay professionals for their accounting, paying an accountant might be out of your budget. There several accounting software options you can use to run your accounting services. The best accounting software will help track your business income and expenses, prepare taxes and give reports on your financial status.

On top of this, it is also a bookkeeper’s job to keep everything organized. That way, when it is time to file your small business taxes, you can easily access all the data you need. Whether you’re a self-employed professional, a business with employees, a business with contractors, or a freelancer, you can benefit from FreshBooks’ services. On paper, a part time bookkeeper may look like an attractive option.

Alternative: Use Accounting Software

While this is not required for small firms, organizations with large teams and complex operations can consider getting an ERP, costing somewhere between $1,500-$5,000. Taking the figures into account, the median accountant pay in the US is $78,000 and that of a bookkeeper is $43,971 annually. If you’re unsure if cash basis bookkeeping will work for your business, talk to us. We’d be happy to understand the needs of your business and determine if Bench is a good fit for you.

By automating it with cost accounting software, you can save time and money. NetSuite is one example of software that offers cost accounting capabilities. It’s versatile, customizable and integrates easily with a variety of other tools your business may already be using. Now, to deliver efficient bookkeeping services you need bookkeeping and accounting software. In addition to the above, a business owner may also be wary of trusting a part-time bookkeeper with some of the critical financials and records of their customers and/or clients.