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During periods of economic growth, businesses tend to expand and require more sophisticated bookkeeping services. This can lead to increased demand and potentially higher fees as bookkeepers become busier. Conversely, in a recession, businesses may cut back on expenses, including bookkeeping services, which could put downward pressure on fees. Think about how you have helped your clients save time and money or reduce stress, and request testimonials from them so that you can provide concrete examples of the value you deliver. Also, research what other bookkeepers with similar experience and expertise charge in your area so that you can be prepared to offer a competitive rate.

Frequency of Service

Some clients may be cool with old-school checks or direct deposits to your bank account. It’s primarily because the cost of living and operating expenses are higher in urban areas, and jobs need to pay a living wage. You can also charge for an initial consult, a flat fee to see what services they’d need before getting into the project. And even if you work 3 or 4 hours or none, you still get that money, and they need to pay a new retainer to keep you available for the next week.

Per Project

Online bookkeeping service providers offer a cost-effective alternative to traditional firms, leveraging technology to streamline processes and reduce overhead costs. It’s also true that experience in higher-paying bookkeeping services (more on this shortly!) affects your pay. Streamline your processes and leverage technology to maximize productivity and minimize time spent on tasks.

Freelance bookkeepers

If you have a larger operation, a bookkeeper will have more to handle, which may mean higher costs. If your business is smaller, you may not need as much help, so you might be able to keep your costs lower. If any of these warning signs resonate with you, it may be time to hire a bookkeeper.

What factors affect bookkeeping costs?

• Of course, this figure can fluctuate depending on the aforementioned factors — e.g., location, experience, certifications, etc.
• While online providers may offer less personalized service compared to traditional firms, they can be a more affordable option for small businesses and startups with limited budgets.
• While having a degree and/or bookkeeper certification will give you the knowledge that you need to get your foot in the door, having practical work experience is equally valuable.
• Bookkeeping rates are typically charged either hourly, monthly, or on a project basis.
• However, it may also necessitate investment in new technologies and training, which could offset some of the cost savings.
• If you want to learn about the fastest way to become a self-employed bookkeeper, working flexible hours online for your clients, check out Brilliant Bookkeeper.

Hourly rates for bookkeepers vary by location, education, experience, type of service, and more. We’re going to break down all of those factors to help you decide if bookkeeping is the right online business for you. Based on the average salary of a bookkeeper, you should be paying roughly $3,516 a month for bookkeeping if you choose to hire a bookkeeper. The U.S. Bureau of Labor Statistics states that the average hourly pay for bookkeepers is $22.81 per hour. How much a bookkeeper will cost your business every month depends on multiple factors, including the type of service you choose, location, experience, and certifications. Whether you opt for an in-house bookkeeper, a freelance professional, or an online subscription service, Partnership Accounting each option comes with different costs and benefits.

• Select a state from the drop-down menus below to show the average rate for bookkeepers in that state.
• Not all bookkeepers are equal in the types of services they offer, and this is often a major factor in how much you make per hour.
• In-house bookkeepers incur salary, benefits, and training costs, making them the most expensive option.
• You can hire them as needed or for specific tasks, which is helpful if you don’t need full-time bookkeeping.

The average hourly rate for freelance bookkeepers ranges from $17.01 to $28.48. Depending on your geographic location, this amount will be more or less than the average national rate of $22.75 per hour. Another option is to work as an in-house bookkeeper, income statement typically earning a salary of $59,429 per year, or the national average of $27.27 per hour. However, depending on where you live, average salaries can range from $42,936 to $70,482 per year.

Signs you’re ready to hire a bookkeeper

The AIPB certification program is ideal for someone who doesn’t have any formal education in bookkeeping. Certification exam and materials are $574 for nonmembers and $479 for AIPB members. Select a state from the drop-down menus below to show the average rate for bookkeepers what is a bookkeeper in that state.