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How Much Does It Cost To Outsource Bookkeeping And Accounting?

Posted on 10/11/2022

What distinctions may bookkeepers make between small, medium, and big customer accounts? Let’s compare the various sizes in terms of their revenue, employee count, and other crucial criteria. The fixed monthly prices we charge for bookkeeping services and the bookkeeping activities performed for each one will then be compared to this. Our intention is to clarify for you what these breakdowns for each client look like.

How Much Does A Bookkeeper Cost For A Small Business?

  • The typical annual compensation for a full-time bookkeeper is currently between $35,000 and $55,000.
  • And the average cost to outsource your bookkeeping requirements is between $500 and $2,500 per month.
  • When you’re ready, full-service accounting can be added by outsourced bookkeeping services to assist you to scale if you’re expanding.
  • There are many various types of back-office outsourcing businesses available today, from project-only outsourcing to hourly rates, fixed monthly service prices, and a la carte packages to suit the specific requirements of each organization.

What is the fee for bookkeepers?

Since the outsourced bookkeeping rates are often determined by the volume or number of transactions, pricing must be tailored to meet the particular requirements of your company.

How much does a bookkeeper charge per hour?

For their services, bookkeepers typically charge between $50 and $100 per hour.

How much does outsourced bookkeeping cost?

The typical cost of outsourcing your accounting and bookkeeping can range from $500 to $5,000 per month for small businesses.

The average annual Independent Bookkeeper salary as of November 2022 is $56297. The majority of independent bookkeeper rates or salaries range between $35500 to $61500 per year.

Monthly accounting fees for small businesses:

The expense of accounting is influenced by the size, sector, and bookkeeping procedures of your company. Despite the fact that each firm is unique, there are standard small business accounting fees and expenditures. Do you pay a premium for accounting?
Statistics on small business accounting costs were gathered in 2015 by a research study for Small Businesses. Most small company owners, according to research, spend at least $1,000 annually on internal expenditures, legal fees, and accounting administration charges. The data is broken down like this:

  • 23% spend $1,000 or less
  • 31% spend $1,000 to $5,000
  • 18% spend $5,000 to $10,000
  • 12% spend $10,000 to $20,000
  • 16% spend $20,000 or more

According to the survey, monthly accounting fees for a small business typically range from $1,000 to $5,000.If you’re a startup business owner; don’t forget to budget for accounting expenses. If you’ve been an owner for a while, it could be time to reexamine accounting expenses.

How much to charge for bookkeeping services:

The major dilemma is how much to charge for bookkeeping. After all, a variety of factors can affect pricing. Additionally, you could be asking yourself a zillion questions, such as “How much should a bookkeeper charge per hour?” and “What are other bookkeepers charging for similar services?”

Take a peek at a few average rates to make understand you the witty question: How much to charge for bookkeeping services?

  • The average hourly wage for a bookkeeper in the U.S. is $22 per hour.
  • CPAs (Certified Public Accountants) typically charge $200 – $250 per hour.
  • Top bookkeepers in major cities may charge $500 per hour (or more).

What Are the Roles of Bookkeepers in Small Businesses?

The majority of small businesses bookkeeping services handle the following duties:

  • Constantly and with the utmost accuracy maintaining record books.
  • Entering data into ledgers used for bookkeeping.
  • Monitoring financial activity and producing reports on it.
  • Producing, entering, and mailing client bills.
  • Taxation and billing for payroll.
  • The balancing of various financial accounts.
  • Preparing records to support loan audits.
  • Making sure business compliance.

In addition to the following factors, we provide vital support to small firms during their incubation, establishment, and maturity phases.

How much does it cost to outsource bookkeeping and accounting?

Many small business owners outsource their bookkeeping to an accounting firm.

According to the complexity and amount of transactions, outsourced accounting costs are comparable to those charged by a contract bookkeeper, with an average monthly fee that varies from $250 to $2,000.

The majority of the above-mentioned employee-related costs can be reduced or even completely eliminated by outsourcing accounting services. By lowering these expenses, you may create the capacity and time necessary to expand your practice in addition to financial savings.

Over the years, the field of accounting has seen significant developments. The profession has advanced technologically and integrated automation into many of its procedures, making it more organized and sophisticated than ever.

But there have always been many difficulties along with positive change.

How Do Bookkeeping Service And Price Packages Usually Operate?

Any bookkeeping professional you engage with should keep accurate, current records of all the financial operations of your business using accounting software, including daily transactions, income, and spending. Each bookkeeping solution covers a somewhat different variety of services.

A bookkeeper may also handle your payroll and bank account reconciliation, create monthly financial statements, and handle day-to-day financial tasks like accounts payable and receivable.

However, the majority of conventional bookkeeping services won’t provide you with this data until several weeks following the end of the month.

Following the completion of all financial choices for the month, you will be able to view the specifics of your transactions and outlays.

The Regular Pricing Options:

Your pricing approach changes as your accounting business expand. Whichever route you use, your rates must satisfy the following standards:

  • Our services are profitable.
  • Clients recognize your value and are willing to pay your fees.
  • It’s a win-win for you and your clients since you are both happy with the pricing.

Every offer we make is carefully evaluated and taken into consideration; this evaluation is based on variables including the volume of transactions to be handled and the processing time required.

In general, Velan’s accounting team guarantees value for money for every model of bookkeeping services.

Now that the standards have been established, let’s briefly go over the three typical price alternatives.

Hourly Rate: 

  • An hourly rate connects your fees to time. This is the most common way to charge for your bookkeeping services, especially when you first start out.
  • Apply to those projects which are high priorities. The outsourced accounting pricing is defined as per the specific requirements

Monthly Rate:

  • Apply to our clients who have established or want to establish long-term relationships with us.
  • We charge a set rate for the service. You estimate the time and cost to establish your set fee. Some bookkeepers add in profit margin as a buffer for the unexpected.

Project Rate:

  • Apply to the middle to large volume data projects. We estimate how long the whole process will take and then offer a certain discount based on our hourly rate.
  • This project rate strategy seems similar to a fixed fee since it’s a set price. With this price strategy; however, you price the client rather than your time and costs. As a result, you enjoy a higher profit margin for your bookkeeping services without working any additional hours.

Which Bookkeeping option is best?

It is the responsibility of professional bookkeepers to manage your accounts on a daily basis, control data input, record financial transactions and tax data, and provide financial summaries. Basic bookkeeping duties also include managing vendors and reconciling accounts payable and receivable.

Small companies have a variety of alternatives for accounting services, and costs might change based on your requirements and preferences.

As a successful company owner, it’s critical to evaluate the financial standing of your enterprise and determine the kind of accounting service that will serve you best.

Part-time Bookkeeping:

  • Small company owners who can handle most accounting duties but need a little additional help can consider part-time bookkeeping. They receive assistance from part-time bookkeepers with receipts, employee time sheets, and any other ad hoc tasks.
  • Part-time bookkeepers often work 15 to 25 hours per week for $45 to $65 per hour.
  • For business owners who want to manage most of their financial responsibilities on a monthly basis, part-time bookkeeping is a fantastic alternative. Other bookkeeping alternatives can be better suitable if you want constant, long-term accounting assistance.

Full-time Bookkeeping:

  • A robust, prosperous company needs precise, current books. Daily accounting tasks are the responsibility of full-time bookkeepers. A full-time bookkeeper is an excellent alternative if you lack the time or money to devote to full-time accounting.
  • For full-time bookkeeping, the typical yearly service cost is from $35,000 to $55,000, with perks.
  • Unless the accountant has their own place, office space is probably also necessary. A full-time bookkeeper will offer financial stability and efficient administration for small firms that are dealing with increasing staff numbers and financial development.

Outsourced Bookkeeping:

  • For small business owners, outsourcing bookkeeping services could seem frightening or unneeded, but depending on your company’s needs, it might really make the most sense. Due to recent technological developments, outsourcing is now a practical and affordable choice.
  • Outsourcing bookkeepers often charge between $500 and $2,500 per month. This assortment of personalized accounting services might be advantageous to modern and progressive small firms.

Bookkeeping service cost: Wrapping Up:

As you can see, there are several variables that might affect how much you should charge as a bookkeeper. So, while deciding on costs for your services, take your time. To ensure your prices are fair to both you and your clients, you can:

Research overall average rates in the industry

Check out state-by-state averages

Look at different pricing strategies

Consider all of the factors that can impact price (e.g., expertise, certifications, etc.)

Consider Velan’s advice when deciding how much to charge for your bookkeeping services and pick a price that seems “just right.” You don’t want to charge too much or too little for your products.
Otherwise, you risk losing out on revenues or frightening away customers with exorbitant prices. Make sure you’re invoicing your clients fairly by doing your due diligence. However, don’t downplay your contribution and knowledge throughout the price process.


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Topics: Bookkeeping Services




About the Author:

Pramod has over 11 years of experience relating to finance and accounts in diversified industries. He is an expert in resource and process optimization resulting in greater operational efficiencies.

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