Keeping your finances in order as a business is a key priority, but what is the best way to get ahead?
Whether you choose to hire in-house or outsource to a specialist service, bookkeeping is a valuable and essential addition to your business practices.
If you’re wondering ‘how much does a good bookkeeper cost?’, we’ve covered all you need to know to find the perfect person for the job.
Leave your finances in the hands of a professional and you’ll have plenty of time to do all the other important things your business needs.
First things first, what is bookkeeping? From handling payroll to managing your day-to-day accounts payable and receivable, a good bookkeeper makes your job easier and ensures you’re never left scrambling for your financial details when tax season rolls around.
How much does a bookkeeper cost, and, more importantly, how much should a bookkeeper cost your business?
Read on to find out how much you’ll need to invest in making your finances a stress-free area:
From handling payroll to managing your day-to-day accounts payable and receivable, a good bookkeeper makes your job easier and ensures you’re never left scrambling for your financial details when tax season rolls around.
How much does a bookkeeper cost, and, more importantly, how much should a bookkeeper cost your business?
Read on to find out how much you’ll need to invest in making your finances a stress-free area:
How Much Does A Bookkeeper Cost in 2023?
When it comes to bookkeeping, it’s rarely a case of one-size-fits-all.
Whereabouts your business is, what requirements you have, and the volume of financial data your business produces will all affect how much your bookkeeping bill will be every month.
With so many moving parts and components involved in the bookkeeping process, breaking down those costs is the best way to get a look at the bigger picture.
So, how do you calculate just how much you’ll be paying?
Here’s how we break down the average hourly rate:
- General bookkeeping: $80-100
- Ongoing bookkeeping: $150-200
- Setting up software: $120-150
- Bank reconciliation: $170-200
- BAS and GST: $250-300
- Accounts payable: $250-300
Still not sure ‘how much does a bookkeeper cost per month’ for your business?
While the service bookkeepers provide is the foundation for the costs you’ll pay, your rate will also vary based on their skills, experience, and the convenience of the service you get.
Bookkeeping Rates & Fees for Small Business
As a small business, your demand for financial services is likely to be less than larger companies overall.
So, how much does it cost to hire a bookkeeper for a small business specifically?
Many bookkeepers and even complete accountancy services specialise in small businesses, making them the ideal choice to meet the needs of your business.
Picking a bookkeeper with experience in small business services means you access professional support that’s best suited to your needs and limitations.
While small businesses are, by their nature, on the smaller side, there is a vast range of differently shaped and sized small companies out there.
This means that a small business with half a dozen employees and hundreds of clients is in the same category as a start-up with one employee and a handful of clients.
While one may need outsourced payroll, tax preparation and debtor management, the other may only need accounts receivable and reconciliation from a professional bookkeeper.
With many small business bookkeepers offering set services monthly, you’ll find that you can typically get one ‘package’ service instead of paying for day-to-day bits and pieces.
You’ll generally have one charge from $500-$2,500 that covers everything your business needs, with additional fees for overtime and other work added on top.
To get an accurate quote for your specific small business needs, your best bet is to speak to a professional bookkeeper directly.
Hiring a professional saves you time and ensures your finances are in order, making them well worth the investment, especially if you don’t have formal training in business finances yourself.
How Much Do In-House Bookkeepers Charge?
An in-house bookkeeper is hired as part of your business to provide bookkeeping services for a set salary.
For smaller companies, an in-house bookkeeper or accountant may wear various ‘hats’, allowing them to offer a comprehensive service, give advice, and support business planning.
It’s important an in house bookkeeper has a complete knowledge of bookkeeping as is not just an administrator.
Our bookkeeping guide can help you understand what is involved and compare that with their skillset. We can also answer questions such as what is double entry bookkeeping?
For businesses that find their needs for financial support growth over time, hiring in-house may be the ideal choice.
On average, the salary for a bookkeeper in Australia is around $50,000 to $70,000 per year.
However, this will vary depending on their training, experience, or expertise in their field.
Apprenticeships for bookkeepers are also an option if you can support them in-house for their training and development.
When you hire an in-house bookkeeper, you don’t need to worry about how much does a bookkeeper cost per hour.
You pay a set salary per year, the same as any other employee, and you get their undivided attention for your financial requirements.
By having a bookkeeper that works directly for you, you can ensure all your finances are completed promptly on time and on schedule throughout the year.
However, you should ensure that you have enough for a bookkeeper to do in your business before you hire someone for the role.
If you don’t have enough to occupy their time, either full or part-time, you may be losing money compared to outsourced, per-hour services.
In-house bookkeepers may also have a limited skillset depending on your budget for hiring.
They may be beginners.
In that case, getting a complete guide on bookkeeping for beginners is essential, so that they can handle all of their tasks accurately and correctly. We also provide some expert bookkeeping tips to help keep you on track.
In contrast, outsourced bookkeepers may have a wealth of experience and skills across a range of sectors and industries.
How much do in-house bookkeepers charge monthly?
When you hire someone in-house, you are paying a salary for their service.
For a bookkeeper, this would be around $4,000 per month based on the yearly salary.
For part-time work, this could be approximately $1,000 per month.
How many hours do in-house bookkeepers work?
In-house bookkeepers can work any number of hours you require.
For small businesses, it’s common to employ a bookkeeper part-time.
Growing companies may have the work and financial needs to bring on a bookkeeper full-time as their requirements change.
Is hiring an in-house bookkeeper worth it?
If you have plenty of work for a bookkeeper to do and you’re keen to have a financial expert on your staff, hiring an in-house bookkeeper may be a good choice for you.
It’s all down to personal preference and the exact requirements of your business specifically.
And it is important to know the difference between bookkeeping vs accounting, as they are two very different roles.
How Much Do Outsourced Bookkeepers Charge?
For many small businesses, hiring an outsourced bookkeeper is the ideal option for their finances.
As a more flexible option to suit changes needs throughout the year, an outsourced bookkeeper can either charge a set monthly fee inclusive of all services or charge for their services based on hours worked.
Depending on the complexity of services you need and the number of transactions a bookkeeper will have to manage, a standard ‘package’ will cost you anything from $500 to $2,500 per month.
It may be more or less depending on your choice of bookkeeper, as well as the individual services they offer.
For example, a bookkeeper that only handles transactions and tax preparation may charge $200 per month, with additional costs around the time of tax filing.
An outsourced bookkeeper that offers entire payroll and HR services would have a set, standard price for those services year-round included as part of a package.
One of the most significant benefits of outsourcing is that you can adjust your level of financial support to the amount of work available.
If your business has substantial differences in your financial needs between seasons, an outsourced bookkeeper can be flexible to that demand.
For example, meeting the demand for retail businesses around Christmas and other holidays.
If you find that your costs for outsourced accounting are rising beyond what you’d pay for part-time in-house services, that may indicate it’s time to make the switch.
But for many businesses, choosing to outsource is not only more cost-effective.
It is also more practical to access expertise and industry knowledge beyond what can be achieved in-house.
For example, a team of experts can assist with tools like bookkeeping templates and have a clear bookkeeper duties checklist that they follow.
How much do outsourced bookkeepers charge monthly?
The charge for an outsourced bookkeeper may vary depending on the services you need.
Costs can be as low as $200 per month for very basic services to $2,500 per month or more for an all-inclusive service include payroll, taxes and more.
How much does a bookkeeper cost per hour will also depend on the services they provide.
How many hours do outsourced bookkeepers work?
Outsourced bookkeepers will work the number of hours your business needs them to.
With no set schedule, you can choose to pay a bookkeeper for a set number of hours as a package or opt to pay them on a per-month basis depending on the hours they have put in.
Is hiring an outsourced bookkeeper worth it?
If your business needs financial support but not to the level where hiring would be financially viable, outsourcing to a trained and qualified.
Some companies are tempted to hire apprentices to save money.
But when you consider ‘how much does it cost to become a certified bookkeeper?’, it’s often the most cost-effective option to hire an already trained and experienced professional.
Summary
From hiring in-house to outsourcing to the experts, how you choose to do bookkeeping is a crucial consideration for your business needs.
Want to know exactly how much does a bookkeeper cost for your business?
Geekbooks is the place to start.
Get in touch with our friendly team today to get a quote for our expert services in year-end reporting, tax preparation, payroll and more.
Our specialised bookkeepers have the training and experience to ensure your finances are in order.