How much is it to hire a bookkeeper? (Updated 2024)
If a business is growing and thriving, most business owners will require the help of a bookkeeper. With the need of getting help, one of the top questions is to get a sense of how much this service will cost. Although it is difficult to answer that question, I will try to do my best to explain some general pricing guidelines.
Hiring a bookkeeper is similar to buying a car. With so many options available, price ranges can vary drastically. Just as a Ford F150 can start at around $40,000 with just a basic package, it can quickly cost over $100,000 once the shopper adds items such as power windows, all leather interior, 4-wheel drive, upgraded wheels or a spray-on bed liner. Since most Americans spend over 30 minutes a day in their vehicle, car owners understand the importance of getting what they want so they have no regrets.
These same principles typically apply when shopping for an accountant. No regrets when you understand the services you need.
So how much will it cost to hire a bookkeeper? It depends on several factors. The activity of your business will drive the price up or down. For example, if the company has 300 transactions a month, the price will be lower than if the company had 2000 transactions per month. If the business had to file monthly sales tax, the price would be higher than a company that is required to file their sales tax once a year. Payroll services would cost less if there were five employees being paid twice a month versus 15 employees paid every other week within two neighboring states.
Another factor that will affect the price is compliance work versus transformational work. Let me explain… If you are hiring a bookkeeper to categorize and reconcile your bank accounts solely for the purpose of filing your taxes, you can expect to pay a lower price. But, if the business owner is hungry to grow their company, they may need more contact with their accountant so they can provide guidance and counsel.
Here at our firm, our bookkeeping clients pay a minimum of $650 a month for basic support. The average client pays around $750 a month.
To compare our costs, here are three alternative solutions that do post their prices online.
1. Pilot: https://pilot.com/pricing Their minimum fee is $600 per month for $15,000 in monthly expenses. If you have more than $15,000 in expenses each month, the cost would be more. If you need CFO support, the minimum cost is $1050 per month.
2. QuickBooks Live Bookkeeping: https://quickbooks.intuit.com/live/pricing/ Their monthly bookkeeping fees starts at $200 a month. But, their package does not include sending invoices, paying bills, advisory services, filing sales tax returns, creating or sending 1099s, nor do they manage payroll.
3. Bench Accounting: https://bench.com/ Their bookkeeping fees start at $300 a month for categorizing and reconciling accounts. Note: Bench Accounting has announced a sudden closure, effective March of 2025.
Because accounting firms bundle their services differently, you cannot compare solely on price alone. I recommend that you make a list of your bookkeeping wants and needs and then do your research to find the firm whose services match!
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