Cost of Bookkeeping Services for Small Business

The cost of a small business enterprise incites for bookkeeping fees will depend upon an ample no. of variables like the company’s size, life cycle, monthly based transactions, workforce, expense accounts, bills payable, invoices, number of the payroll process, and balance sheet reconciliations. 

You might wonder how bookkeeping service fees are structured? Bookkeeping service prices depend on your industry type and your demand for any job costing, while there are no. of factors that influence the price but generally, bookkeepers set their fees in certain ways. Charging on hourly or flat fee are common, some might ask for an advance or full payment straight through a deposit. 

Additionally, the costing for bookkeeping services will be influenced by your accounting systems operations, procedures, and policies as well as, how are the reporting requirements set-up. 

So, how much does the cost of bookkeeping service for small businesses? 

From the volume of documents to process to the level of security required, the bookkeeping service fees vary factor to factor. If you are a small business owner, you require at least 10-12 hours for bookkeeping on a monthly basis. 

Outsourcing bookkeeping services save ample time and workforce by keeping ahead of your finances. 

What do you need- basic bookkeeping or full-service Accounting? 

The main concerns for small business enterprises are remaining submissive to federal and state rules, getting paid, and settling bills. In addition to this, small business owners need to record transitions and verify that their payroll is correct. 

As the business thrives, you will reach a certain level where you will require financial reports to make decisions for your business’s growth and success. It’s better to outsource bookkeeping services or opt for the best online bookkeeping services for professional guidance to meet the advanced needs of bookkeeping. 

Along with this, there’s a need for accrual accounting and managerial accounting to influence decision-making. Before you figure out how much bookkeeping service will charge you. First, you need to look out for your needs; whether you need simple bookkeeping or complex accounting services. 

This will help set up the costing, as, at times, the complexity of the process charges way more. 

Outsourced bookkeeping cost factors

For small business enterprises, outsourcing bookkeeping services saves a lot of time and also money. However, freelancing bookkeeping can be a more cost-efficient option, but the cost varies from project to project. 

What are the factors which influence the freelance bookkeeping service’s cost? The cost of bookkeeping services varies from one locality to another. According to statistics, the standard fees around the country are approx $23/hour. Keeping other factors constant, the charge will vary depending on your location. 

In Nevada, North Dakota, Montana, Idaho, and Wyoming, the fees are around $19.5/hour, which is said to be lower than what bookkeepers charge in California. 

What role does a bookkeeper play in your small business? 

A bookkeeper is responsible for maintaining your financial books accurately. The roles include data entry, recording financial transactions, tacking accounts, and creating reports. From reconciling bank and credit card accounts to coding and paying bills, and maintaining merchants for accounts payable and clients for receivable, and from supporting CFO to collecting due payments. 

Part-time bookkeeper vs. Full-time Bookkeeper: Cost!

If your business requires simple bookkeeping at this stage, you need to figure out whether you want to outsource or get it done in-house. If you decide to outsource, then decide to hire a part-time or full-time bookkeeper. 

Part-time bookkeeping for small businesses: the bookkeeping service fees for part-time bookkeepers vary, depending on location and job description. Part-time bookkeepers charge around $20/hour on average. They mainly perform basic bookkeeping task and needs to look after. 

If you can manage the accounting and your work at the office simultaneously then, hiring a part-time bookkeeper is an affordable option. The management needs to review the work done by the bookkeeper. 

Full-time bookkeeping for small businesses: the bookkeeping service cost for a full-time bookkeeper is somewhat between $35,000 to $55,0000 annually plus overhead on average. 

According to statistical analysis, cities like New York and Los Angeles have a bookkeeper who is charging up to $70,000/year plus benefits and overhead. Perks of hiring a full-time bookkeeper are that you do not require them to review on a daily basis. They are professionals who will handle all your bookkeeping and accounting needs. 

Reviewing the balance sheets and statements on a monthly basis is enough for the full-time bookkeepers for guaranteed accuracy. You can focus completely on other works that need to be done and for which you started your business in the first place. 

Outsourced bookkeeping services for small businesses

The bookkeeping service fees of outsourced bookkeeping vary from $500 to $2500/month on average, depending on the volume of transactions and complex accounting solutions required. A perk you get when outsourced bookkeeping is that it provides you with the power to customize the services according to your bookkeeping needs.  

Additionally, one can outsource advanced management functions and accounting solutions to get what you need at this stage of your business for growth and success. This might be costlier, but if your business is on the way to growth, you need to shift to accrual accounting solutions with financial as well as management reports, which will assist you in scaling. 

Generally, you will require this level of financial assistance not only for yourself but for your stakeholders, investors, and banks. 

If part-time or in-house bookkeeping is not serving your requirements, then switching to outsourcing bookkeeping service is the ideal solution. Plus the outsourcing bookkeeping services are less expensive than in-house bookkeeping. 

Ready to hire a bookkeeper? 

Figure out which bookkeeping service suits best your business’s growth and budget. Start handling the problem with your accurate books. 

The bookkeeping service fees vary from the level of expertise and professional experience, and you get a variety of packages to choose from. regardless of your business size and requirements, this blog will help you get a fair knowledge of the bookkeeping fee structure.