Skip links

How Much Should I Charge for Bookkeeping Services? Averages

how much does a cpa charge for bookkeeping

You should be charging your clients accordingly for your services. Otherwise, you could wind up losing clients to other firms (and no bookkeeper wants that). Because fixed rates are so risky for accounting firms, they’re usually reserved for very straightforward bookkeeping jobs.

On paper, a part time bookkeeper may look like an attractive option. However, any error or oversight that may appear on the sheet is fully at your business’s expense. If you fail to keep accurate monthly records throughout the year, a CPA won’t always provide them retroactively.

How much does a bookkeeper cost?

But, with growth comes an increased responsibility for your back office, and your bookkeeper might need help keeping up. Your accountant will need to fill in the gaps in your records — which means they’ll ask you to collect all your proof of purchases from the last year. Let’s be honest, tending to the books isn’t everyone’s idea of a spring picnic. And because the task can feel overwhelming, your books may end up falling behind. If the cost is a significant deciding factor for you, here’s a way for you to determine whether it’s worth it. You’ll also get access to your very own tax assistant who can answer your tax and bookkeeping questions.

  • A key benefit of Outsourcing is it gives you the ability to customize the services you receive to your bookkeeping needs.
  • It means quality of service, efficiency, calmness, problem-solving, and confidence.
  • Freelance bookkeepers often come from different backgrounds, but this doesn’t mean they necessarily offer lower prices for their services.
  • Bookkeepers are in charge of maintaining your books closely day in and day out.
  • In addition to hiring an accountant or bookkeeper to assist with keeping your financial records in order, you can also benefit from their assistance if you’re ever called for an audit by the IRS.
  • They generally do all data entry into accounting ledgers or software.

The average hourly wage for a bookkeeper in the United States is $20, but bookkeeper rates can vary from $18 to $23 per hour, dependent on education, experience, and additional skill set. Whether you need a full time or part time employee will greatly impact how you calculate labor cost. Employee costs like benefits, training, and time-off are important to think about when comparing an in-house bookkeeper and a financial management company. The difference in cost between an accountant and a tax preparer depends on the individual.

Costs for additional services.

A full-time bookkeeper handles the day-to-day accounting functions for your office. Keeping your books in order and up-to-date is the foundation of the financial strength of your business. Hiring a full-time bookkeeper in this situation could be the right answer for you. Maybe the freelancer is experienced in a single software and charges a lower rate for it.

  • In 2020, the average hourly rate was $161.34 for an itemized return and $153.74 for a non-itemized return.
  • Auditing involves an independent examination of an organization’s financial statements, ensuring they are accurate and comply with accounting standards.
  • The cost of outsourcing your bookkeeping can differ depending on your needs.
  • Many small businesses in the early stages are primarily concerned with compliance – paying bills, getting paid, recording transactions, ensuring payroll accuracy, and following state and federal regulations.
  • To do your own calculation, start tracking how much time you actually spend on bookkeeping.
  • The cost of full-service accounting is hefty, and CPAs tend to charge a higher hourly rate than bookkeepers.

Businesses in the hospitality or property management industries may need different financial services than business owners of a restaurant franchise. Hiring an outsourced bookkeeping agency can seem overwhelming at first glance— but it can be an extremely cost-effective, simple solution with many benefits that can help your business grow. The cost of outsourcing your bookkeeping can differ depending on your needs. how much does bookkeeping cost FinancePal offers package-based bookkeeping pricing options that all include a dedicated accounting team, online access and mobile application, and monthly reconciliations. Not every business owner needs the same level of financial management services. Depending on your industry, the size of your company, how many employees you have, and how long you’ve been operating, you may need more or less support.

Additional CPA-Related Services

Although several factors will go into determining how much you spend on bookkeeping, there are some standard industry rates that you should be aware of. In the U.S. currently, small businesses are generally charged an hourly rate of $150 to $450 per hour for their bookkeeping needs when they hire a Certified Public Accountant. If you don’t need all the services of a CPA, you could hire a bookkeeper instead, which would cost around $30 to $90 per hour. Part time bookkeepers will charge between $400 and $800 per month for basic bookkeeping, excluding the benefits. For full time services, expect to pay from $3,000 to $4,500 per month without the benefits.

Leave a comment