Among the most important aspects of operating a business is managing finances, but it is also among the most confusing and time consuming tasks. That is why many U.S. based business owners ultimately ask the important question "How much does it cost to hire a bookkeeper?"
At The Fino Partners, we frequently talk with small businesses overwhelmed by receipts, spreadsheets and invoices. If you are finding it hard to continue with your financial documents or simply want more peace of mind, here is how you can find a bookkeeper and how much it'll cost you.
What bookkeepers do, how much they charge and what influences the price are discussed in this article. Whether you are a solo entrepreneur or an expanding business, you will know what you should expect when hiring bookkeeping assistance in the USA.
What Does a Bookkeeper Actually Do?
Before we get into the cost, first let's discuss what a bookkeeper does. A bookkeeper records and organizes your financial data, such as:
- Income or expenses.
- Invoices & bills.
- Payroll entries.
- Bank or credit card transactions.
- Monthly reconciliations.
They get your books correct and clean for your accountant at tax time. In case you operate a small business, a good bookkeeper understands where your cash is going and just how your finances are operating.
At The Fino Partners, our clients frequently ask us how to hire a bookkeeper and we always tell them that, look for someone who understands numbers and your business type clearly.
How Much Does It Cost to Hire a Bookkeeper?
Let us now understand how much bookkeeping costs in the USA:
1. Hourly Rates
Many U.S. bookkeepers charge per hour. On average:
- Freelance bookkeepers charge $25 to $60 an hour.
- Certified bookkeepers or those with experience charge $75 or more an hour.
For instance, a 10 hour part-time bookkeeper at $40/hour would cost $ 400 monthly. So, simple right?
But keep in mind, seasoned bookkeepers generally perform quicker and make less errors, saving you cash in the end.
2. Monthly Packages
Some bookkeeping services provide fixed monthly packages based on your business. Such packages might include:
- Basic services - $200 to $500 per month.
- For much more complex businesses - $600 to $1,500 a month.
The monthly packages are popular because they're predictable. You are aware of how much you will pay every month, making budgeting less difficult.
3. In-House Bookkeepers
Hiring a full time, in-house bookkeeper costs much more but might be needed for bigger companies. The typical wage of a full time bookkeeper in the US is:
- Around $45,000 and $60,000 yearly.
- Plus health & wellness, paid leave & office space.
Most small businesses don't require a full time bookkeeper, which is the reason outsourced bookkeeping is very popular.
What Affects the Cost?
Why is the price range so huge? The primary factors that impact the price of employing a bookkeeper:
1. Size of Your Business
More transactions = more time = greater expense. A bakery with 30 monthly transactions will pay less than an online store taking hundreds of orders.
2. Type of Industry
Some industries (like law, construction, or medical) have special regulations and compliance requirements. A bookkeeper with industry experience may charge more but give greater value.
3. Services You Need
Do you simply need basic data entry & categorization? Or do you additionally need payroll, billing, bill payments and monthly reports? More services mean more cost.
At The Fino Partners, we ask business owners how much assistance they're comfortable with before we suggest how to employ a bookkeeper.
4. Software Used
If you currently use QuickBooks, Xero or Zoho Books this can make things easier. But when everything's still on paper and in Excel, your bookkeeper might charge more to clean your books.
5. Frequency of Service
Need weekly, bi-weekly or monthly updates? More frequent service means more work, expect to pay accordingly.
In-House vs Outsourced Bookkeeping - Which Is Better?
Most small businesses do not require somebody full-time. Outsourced services are cheaper and more flexible. By hiring a bookkeeper from The Fino Partners, you could :
- Scale up or down as your small business grows.
- Avoid paying payroll taxes or benefits.
- Get access to experts without signing a full time contract.
- Pay for all the services you utilize.
And as your business grows, we can modify your bookkeeping package without needing a full hiring procedure.
DIY vs Professional Bookkeeping
Some business owners attempt to do the books by hand with software like QuickBooks or Wave. This works for a short while but can result in:
- Missed tax deductions.
- Financial reports being confused.
- Errors which are expensive.
- Stress & wasted time.
Think of your hourly rate. If your time may be worth $50/hour and you do 10 hours per month bookkeeping, that is $500 of your time. Hiring a pro may cost exactly the same, however the job is completed quicker, more precisely and with less anxiety.
Signs You Need to Hire A Bookkeeper
Still unsure how you can employ a bookkeeper or if you require one? These are indications you should quit doing it yourself:
- You're behind on taxes or books.
- You do not know your monthly profit/loss.
- You're wasting time on admin stuff.
- Your accountant says your books are messy.
- You would like to grow or take a loan.
If all of these seem familiar, you may want to contact The Fino Partners.
Related Resources
- How CPA Firms Pick the Best Bookkeeper for U.S. Firms
- What Does a Bookkeeper Do for a Small Business in the USA?
- Do I Need an Accountant or a Bookkeeper? Understanding the Key Differences
So how much will it cost to employ a bookkeeper? The answer depends on your requirements but most small businesses can get a solution which suits their budget. And regardless of whether it is $200 per month for basic service or higher for full service support, the ROI is obvious.
From being IRS compliant to reducing stress and saving time, the benefits are worth it.
We at The Fino Partners can help you determine how to find the right bookkeeper for your business. Our team is here to offer you peace of mind, financial stability and more time to do what you do best, running your business.
