How Much Does a Bookkeeper Cost per Month?
Outsourcing your bookkeeping is wise for any small business owner who wants to free up time in their schedule. Nonetheless, bookkeeper fees depend on your location, the bookkeeper’s experience, whether you’re hiring a bookkeeping firm or an independent contractor, and the services you require from your bookkeeper. This article will explain and categorize the average monthly cost of hiring a bookkeeper to help you set a realistic budget.
Experience Level and Certification
The fees of an independent bookkeeper are usually based on proficiency, experience, and educational background.
Here is an overview:
For a person who has 0 to 2 years of experience working as a bookkeeper–
– Average Hourly Rate: $15 – $25
– Average Monthly Cost for 10 Hours/Month: Although there’s no special fee for using the facility, one has to spend about $150-$250.
– Average Hourly Rate: $25 – $35
– Average Monthly Cost for 10 Hours/Month: $250-$350
Certified Bookkeeper (5+ years’ experience + certification)
– Average Hourly Rate: $30–$50
– Average Monthly Cost for 10 Hours/Month: low: $300- $500
Certified Public Bookkeeper, CPB credential.
– Average Hourly Rate: $50-$75
– Average Monthly Cost for 10 Hours/Month: $500 – $750
Of course, an experienced certified bookkeeper with such credentials as CPB can demand more than double the hourly rate of an entry-level bookkeeper. Certifications show that the bookkeeper is fully trained and qualified to do the job.
Bookkeeping Company vs Independent Bookkeeper
You might also opt to hire a bookkeeping company, not an individual contractor, to do the job for you. Bookkeeping companies usually cost slightly higher per hour because you are compensating for their expenses. But they also have more facilities, update software/technology and also employee benefits to attract the most talented employees.
Bookkeeping Company Rates:
– Entry-Level Employee: $30-$45/hour
– Experienced Employee: $45-$65/hour
– Manager: $65-$85/hour
Independent Contractor Rates:
– Entry-Level: $15-$25/hour
– Experienced: $25-$50/hour
Thus, even though an independent contractor may cost less per hour, a bookkeeping company usually offers better services and handles more complicated operations because of its infrastructure.
How Many Hours Per Month Will You Require?
This means that the total amount of money you spend on bookkeeping services each month depends on the number of hours of bookkeeping you need in a specific month. The majority of small businesses require a monthly commitment of 5-15 hours.
Here are two examples:
Example 1) 5 Hours/Month from an Entry-Level Independent Bookkeeper earning $20/hour would cost:
5 hours x $20 = $100 per month
Example 2) 15 Hours/Month from a Certified Bookkeeper at a Bookkeeping Company charging $55/hour would cost:
15 hours x $55 per hour = $825 per month
When budgeting the amount of money you’re willing to spend each month; it is safer to underestimate the number of tasks you will complete in a month because other tasks can always be incorporated as you charge more money for them. Additional costs that may arise from such areas as further research and more calls or meetings will attract charges associated with the new higher hourly rate of the bookkeeper.
Which Services Are You Interested In?
Typical bookkeeping services and fees include:
– Bank Reconciliation: $55- $150 per month
– Accounts Receivable: $100-$250 per month
– Accounts Payable: The amount will range between $100 and 250 per month
– Payroll Services: The cost for the program ranges from $100 to $600 monthly
– Expense/Revenue Tracking: $100-$250
– Financial Statements: $150-$300
– Sales Tax Filings: $50 to $150
– Licensing Renewals: $50-$150
Other activities such as preparation for an audit could attract extra charges of $500+ during the tax season. Remember that you only hire the freelancer for the tasks you need to be done. For instance, your monthly expenses will be less costly provided you require only reconciliations other than financial statements.
Software Expenses
Most bookkeepers prefer to employ accounting software like QuickBooks Online in their work. Additional monthly software subscription fees may range from $20 to $150 depending on the type of subscription plan you choose and the number of user licenses required.
Purchasing packages through bookkeeping companies is more expensive but it often provides software subscription, users license, and access to the dashboard for live report. These “all inclusive” plans offer more value for the price if comprehensive reporting and analysis are essential to you.
