The use of a remote bookkeeping service also eliminates a lot of costs for a company. This includes payroll and taxes for part-time or full-time bookkeepers, as well as employee benefits at the company. Outsourced bookkeeping costs anywhere from $500 to $7,500 per month. However, the company pays for only those services that are used by the outsourced bookkeeping service, so technically there are additional cost-savings. Our customized bookkeeping price packages give the average small business owner enterprise-level service at a rate they can afford. We’ll work with you to establish an affordable monthly fee for services tailored to your business.

Transaction volume is just simply how many transactions does your company have every month? This is a quick kind of shortcut to see how much is the company actually spending every month. But, if used in conjunction with the number of transactions, it shows where there might be outliers that would impact the effort to close the books, and thus impact the cost to deliver bookkeeping services. More complex, bigger dollar amount transactions can lead to more complicated accounting work - at least for providers that are providing accrual based financials (which is important for VC-backed startups).

Add Catch Up or Specialized bookkeeping to any Bench plan

My goal is to help you understand what these breakdowns look like for each client. Understanding virtual bookkeeping along with accounting processes is paramount to any business. Companies are moving toward virtual bookkeeping services out of convenience and cost savings. This is a more modern way of managing records for a business with the use of digitization and cloud storage.

For example, a basic plan may include a monthly bank reconciliation for two accounts and financial statements delivered monthly. A higher plan may include several hours of monthly phone support, account payable collections, and coordination with a tax preparer at year-end. Other factors that can impact the hourly rate include the freelance bookkeeper’s level of education, certifications obtained, such as QuickBooks ProAdvisor, and the software used. A specialty in additional services like payroll or financial analysis, the frequency of services offered, and even an expertise in certain accounting applications can also affect the rate.

How Much Does a Bookkeeper Cost? Monthly Bookkeeping Cost

As such, defining your scope of work becomes incredibly important. Now, this method does come with some disadvantages (which we won’t go into here), many of which https://marketresearchtelecast.com/financial-planning-for-startups-how-accounting-services-can-help-new-ventures/292538/ are causing many firms to re-think their pricing strategy. I always look at the books before I take on any kind of project, whether it’s monthly work or cleanups.

Firms offering outsourced bookkeeping services tend to also be flexible to make sure their solutions fit your specific needs. These firms specialize in bookkeeping and accounting, so their specialists will likely be more experienced and provide greater expertise than hiring an in-house bookkeeper. Bookkeepers who productize their offers usually have different pricing plans that include various services.

What makes our account managers special?

Virtual bookkeeping service providers are an incredibly efficient and budget-friendly alternative to traditional bookkeeping firms. Hiring an internal bookkeeper can be quite expensive for small businesses with limited resources. When you hire a full-time internal bookkeeper, you will have to pay for the other benefits and expenses like paid leaves, training, and more. Bookkeeping is an essential part of managing any business, regardless of size.

Before you can even think about pricing accounting services on your mandates, you need to have an in-depth conversation with your client in order to assess your client’s financial and business needs. Put yourself in their shoes as small business owners, and work to deliver a solution they need. With fixed pricing, you are essentially setting up a service menu and attaching a fixed price to them across the board.

How much should I charge for bookkeeping services? 6 Factors to consider

We'll work with you to establish an affordable rate for services tailored to meet your business needs. For small businesses, they are likely to spend a higher percentage of revenue on bookkeeping and financial consulting costs. Due to these requirements, the average fee for an accountant is much higher than a bookkeeper. While a bookkeeper might charge between $30 and $90 per hour, the hourly cost for an accountant can be between $150 to $450 per hour. Our bookkeepers will give you a clear overview of your business's financial situation.

Just as with hiring an internal bookkeeper and defining their role, you’ll have to decide which pieces of your financial management make sense to outsource including the bookkeeping function. The average price of outsourcing your bookkeeping needs ranges from $500 to $2,500 a month depending on the number of transactions and complexity of services required. A key benefit of Outsourcing is it gives you the ability to customize the services you receive to your bookkeeping needs. If you can manage your job and some of the accounting each month but need a little extra help, a part-time bookkeeper might be a good fit for your business. They can do work such as inputting receipts and tracking employee timesheets, accounts receivable and accounts payable. When hiring a part-time bookkeeper, management still needs to have someone reviewing the work of the bookkeeper.

The more experience you have doing actual bookkeeping work, the more confident you’ll be in your skills, which will translate into higher billable rates. The Xendoo team can also save you money by ensuring all your expenses are properly tracked so there are no surprises when it comes time to file taxes. We’re familiar with all the small business tax deductions and compliance requirements. Hourly pricing is a great option when you only need help with the books occasionally. You can hire someone to come in on a per-project basis and only pay for the time they spend on the project or for an agreed-upon time.