The Cost of Outsourcing Bookkeeping for Small Businesses

A CPA is a certified public accountant who has met specific state and education licensing requirements and passed the CPA exam. Because of their higher education, it is reasonable to assume that a CPA will cost somewhere between $100 and $500 per hour, depending on the market. For example, a CPA in Kansas will charge a different account than a CPA in New York.

The hourly rates can vary greatly depending on the experience and location of the service provider. According to Worldmetrics.org, the average hourly rate for bookkeeping services in the US ranges from $20 to $50 per hour. So, whether you need bookkeeping services, outsourced accounting services, fractional or outsourced CFO services, or a package that provides flexibility, we are ready to help. We are dedicated to providing best-in-class services for your business today, tomorrow, and into the future.

According to GrowthForce, outsourcing your bookkeeping will come with a price tag that spans anywhere from $500 to $2,500 per month. The main factors that will impact the cost are the number and complexity of services needed. That means cost will most likely scale with clearing account the size of business and financial accounts, so small businesses will pay less than enterprises for these services. Professional bookkeeping provides more in-depth financial reports than typical in-office bookkeeping. Because online bookkeeping uses virtual platforms, business owners can see their records anytime, including the cash flow and balance sheet.

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1. You can also outsource invoice processing services with Milestone so we manage all your accounting transactions.
2. With the current economic environment as uncertain as it is, small businesses have often found themselves stretched thin just to keep afloat.
3. The value-based model is a more personalized approach to outsourcing bookkeeping services.
4. According to Worldmetrics.org, the average hourly rate for bookkeeping services in the US ranges from $20 to $50 per hour.
5. You’ll find that bookkeepers who have completed all 3 programs have a much higher average hourly wage.

Moreover, if the business has a high volume of financial transactions or requires specialized bookkeeping services, the salary for an in-house bookkeeper could be even higher. Outsourced bookkeeping rates can vary depending on your business size and the complexity of your financial transactions, as can in-house bookkeeping. The complexity of a business’s accounts can also impact the cost of bookkeeping services. Outsourcing irs announces 2014 retirement plan contribution limits for 401 bookkeeping is cost-effective and will save your company money. Experienced bookkeepers are often better at finding overdue clients and cuts your company could make to increase overall profit.

Hopefully, you now have a better idea of what bookkeeping services you can afford and which services come with a lower or higher bookkeeper cost. Consider investing in simple software like FreshBooks for additional help in handling your finances without breaking the bank. They will keep your books in order and ensure your business has the financial strength required to operate. For medium to large-size business owners, full-charge bookkeepers can also manage payroll. Whether you decide to outsource your bookkeeping or do it with an in house bookkeeper, you should be aware of the costs involved. As a small business owner, you want to make well-informed decisions about financing your bookkeeping expenses, and you want to do it correctly.

Hourly Fees

When selecting a freelancer, it is important to review their work history and any certifications, degrees, payroll deductions or credentials they have when it comes to bookkeeping. However, freelancers with these types of credentials are often more expensive. Cheaper bookkeepers are often part time and work on the weekends or night, often making it difficult to communicate with them and train them. This is likely because of a high number of part-time bookkeepers and overseas freelance bookkeepers.

General Accounting Firms or CPA

Virtual bookkeepers manage your books and software with the primary goal of monitoring your finances. They will deal with your financial information, bank accounts, credit cards, invoices, and other important documents. When you go for a bookkeeping firm, you get some additional assurances not provided by solo bookkeepers. For example, a bookkeeping firm may hire professional bookkeepers with certifications. And if your current bookkeeper needs to take a leave of absence, the firm can replace them with another bookkeeper to fill the gaps.

This leaves little room for error, especially considering outsourced bookkeepers are highly trained, so there is no adjustment period needed. This can improve your peace of mind that your bookkeeping needs are being well taken care of. Keeping track of financial data for a business takes time, effort, and money. But when you play your cards right, you can save on all 3 factors big time.

In this article, we’ve compiled a list of 7 leading brands in this category. In an ideal world, all your clients would be ongoing at a fixed or value-based billing structure. They would know what services to expect from you, and you could charge an automatic, monthly fee. A strong alternative to hourly billing is fixed-rate (or flat-fee). It means you set a fee for each service you offer and provide clients with a ‘menu’ of sorts, with corresponding prices. But the hourly rate is becoming outdated with the dominance of technology.