What is the cost of hiring a bookkeeper?

As a bookkeeper , we are completely qualified to prepare and file Sales Tax Returns & Payroll Tax Returns. Income how much does a bookkeeper cost tax returns are usually filed by the accountant — with the support of the bookkeeper in preparing the numbers.

• Hiring a full-time bookkeeper at40 hours per week at a rate of $14 dollar per hour will cost you$560total for the week.
• By then you will have figured out just how long it will take on a monthly basis to keep their books current.
• Bookkeeping is at the heart of every successful company, so it makes sense to hire a professional to get the job done right!
• Without up-to-date books, you won’t have an accurate understanding of your business expenses, profits, and overall cash flow.

Unfortunately, hiring a full-time bookkeeper is out of reach for many entrepreneurs. According to the Bureau of Labor Statistics, the average salary for a bookkeeper is $42,410 per year. Bringing someone on as an in-house full-time employee requires extra costs on your end, such as benefits and health care, whereas contractors are not entitled to these perks. You may not know how long you’ll need someone for, but comparing the monthly cost of a contractor versus an in-house employee is the best way to see this angle side by side. When you hire one of these firms, the usual process is that they’ll give you a quote estimating how many hours it will take them to do your books, and what the cost for that will be. Keep in mind that this is often not binding – meaning it might take a lot longer than they think it will, which means your costs would be a lot higher than the quote. A common rule of thumb is that the real cost of an employee is 1.25 – 1.4x their salary – and possibly higher, depending on your local market conditions.

Hourly Pricing vs. Flat Fee Bookkeeping Costs

The function of bookkeeping is crucial to ensure that companies pay their employees and vendors accurately. Additionally, bookkeeping can be used to reduce expenses and improve profitability by finding areas where costs can be reduced. Let’s take a look at the different types, and what you can expect to pay for financial management and bookkeeping.

She has owned a bookkeeping and payroll service that specializes in small business, for over twenty years. By now, you should have an idea of how much a bookkeeper is going to cost you, and how that price tag stacks up against the cost of doing it yourself. Armed with that knowledge, you’re ready to decide whether to bring in a professional or hire outside help. In this example, doing your own bookkeeping is more expensive than hiring a professional — and a lot more expensive than using Keeper. It’s a better idea to have someone do it for you, since your time is more valuable elsewhere.

Calculate the direct cost of doing your bookkeeping

Let’s jump into the differences between basic bookkeeping and full service bookkeeping— and how to choose the best option for you based on your needs and budget. There’s a lot of coordination and logistics involved in running a small or medium sized business. Entering your busy season or dealing with employee turnover can distract business owners— resulting in inefficient infrastructure and plateauing growth strategy. Making sure your books are in order can help you save on taxes, stress, and give you the insight to improve efficiency and increase your revenue.

Most virtual bookkeepers use secure and reliable software systems, such as QuickBooks, that keeps your financial records both safe and accessible. Instead of inputting data into physical books in your office, your bookkeeper will enter the same information into a software program – which you can then access whenever you need to check something.

Finding the Right Bookkeeping for Your Business

Part-time bookkeepers and outsourced bookkeeping firms are a sound solution for new businesses, while full-time bookkeepers tend to benefit more established companies more. It’s up to the decision makers in the company to determine the best appropriate solution to maximize their profitability and ensure their growth.

But, don’t minimize your worth and expertise in the pricing process. So, don’t be afraid to boast about your experience while marketing your accounting firm. And, use it as a competitive advantage when it comes to pricing your offerings. Smaller clients generate less revenue than medium or large clients. Therefore, you generally want to charge a small client less because they have fewer needs. If you’re contracted as a bookkeeper, your client isn’t in charge of your sick time or vacation time or disability or leave or anything that they may have to think about with an employee.

Outsourced Bookkeeping Cost Factors

To get you started, we’ve collected a chart below of the average hourly wage for bookkeepers in each state. Keep in mind that these are averages, for the entire state – in large, diverse states, local salaries might vary a lot from the statewide average. For example, salaries in San Francisco or Los Angeles are likely to be significantly higher than in Redding or Bakersfield, even though they’re all in California.