Bookkeeping Pricing Guide May 2025

Bookkeeping is key to managing your business and its financial records. While recording expenses may be simple at first, as the business grows, transactions get more complex, so never underestimate its importance.

Trying to juggle everything when running a business can be overwhelming, and being stumped by poorly kept records is an easily avoidable mistake. Efficient bookkeeping solutions ensure transparency and organization across all expenses.

Remember, accounting and bookkeeping aren’t the same functions, and it’s easy to confuse one for the other. Accounting focuses on creating financial statements and reports. Meanwhile, bookkeeping is all about keeping precise records.

By accurately recording every transaction, entrepreneurs can have a clearer picture of the business’s financial health. They can gain important insights to help them make better budgeting decisions, prepare tax returns, and plan strategically.

In addition to that, bookkeeping tasks are required to comply with certain regulations and meet various legal obligations. Poorly managed records can cause bottlenecks in financial reporting, even causing penalties or legal troubles if they get out of hand.

In this pricing guide, we’ll discuss the true cost of hiring a bookkeeping firm and break down all the important factors that impact the pricing.

As illustrated in the chart above, the average rates range anywhere from a few thousand to tens of thousands. The price tag depends on several key factors, including the complexity of the financial transactions, the size of the business, and the specific bookkeeping needs required. Moreover, the experience and reputation of the bookkeeping firm play a significant role, as firms with highly skilled and reputable professionals often have higher rates. Understanding these variables can help businesses make an informed decision when budgeting for bookkeeping services.

While the costs may be intimidating, bookkeeping is a necessary investment that doesn’t immediately show its benefits but can be pivotal for long-term financial success. Knowing the primary types of bookkeeping is the first step to preparing for your business and understanding how much it will cost.

What are the 2 Types of Bookkeeping?

Every business has its own financial systems and requirements, and different types of bookkeeping can accommodate those unique needs. Here are the main bookkeeping methods that bookkeeping companies typically offer:

• Single-entry bookkeeping: It’s the simplest method of recording financial transactions as it only focuses on one entry for every chronological transaction. Basically, each transaction is only recorded once in a revenue or expense journal, providing a basic view of cash flow. For example, you used the business credit card to buy $100 worth of supplies, that will only be listed in your expenses account.
• Double-entry bookkeeping: This method is more complex compared to single-entry, and it’s widely adopted by many bigger companies or businesses with multiple types of cash flow or expenditures. In double-entry bookkeeping, every transaction is recorded, and all affected accounts are considered to balance the accounting equation. With the same scenario from the first, when it’s double-entry bookkeeping, the $100 supply will be recorded as a decrease in your cash account, and also an increase in your expenses account.
  

Bookkeeping was traditionally done on physical records, but now computerized solutions have made the process easier. Computerized bookkeeping also allows businesses to access real-time information through software that automates tracking, reporting, and invoicing.

Many businesses prefer a hybrid of traditional and computerized bookkeeping solutions as having physical copies can prevent the risk of losing their data due to unwanted bugs or errors. 

Combining both methods ensures that businesses have a reliable backup system in place, thereby enhancing data security and accessibility. While computerized bookkeeping offers real-time tracking and automation, traditional methods provide a tangible record that can be crucial during audits or technical failures. This dual approach also accommodates business owners who may be more comfortable with physical records while still benefiting from modern efficiencies. As a result, the hybrid system delivers comprehensive financial management that bridges the gap between old and new practices.

Bookkeeping Rates by Industry

The scope of work is a key factor when determining pricing for bookkeeping services. Different industries require different levels of expertise and workload. For instance, a retail business with high transaction volumes may require more detailed and frequent bookkeeping compared to a consulting firm with fewer transactions. Additionally, specialized industries such as healthcare or construction might demand bookkeepers with specific knowledge of industry regulations and compliance requirements. This can result in higher costs as the bookkeepers need to be well-versed in industry-specific finance management practices. Therefore, understanding your business's unique needs will help you choose the right service provider at a suitable price point.

Interested in learning how much bookkeeping firms charge for their services in your industry? The table below shows what businesses can expect to pay based on their specific markets. 

How Much Do Bookkeeping Services Cost?

The average cost of hiring a bookkeeping company on Clutch is between $25-$49 per hour depending on a variety of factors.

Bookkeeping rates can fluctuate based on the complexity of the services you require, such as whether you need single-entry or double-entry bookkeeping. Additional considerations include the size of your business and the volume of transactions, which can significantly affect the hours needed to manage your financial records.

Firms with specialized expertise or advanced accounting software might also charge a premium, driving costs higher. However, it is essential to consider that while rates may vary, investing in professional bookkeeping services can provide invaluable support in ensuring accurate financial records and compliance with tax regulations.

Bookkeeping is an accounting process that technically doesn’t require the bookkeeper to be a Certified Public Accountant (CPA) with extensive accounting credentials or certifications. In some states and countries, basic bookkeeping can be done even by staff who don’t have accounting degrees.

However, if you decide to work with a full-service bookkeeping company, they most likely employ professionals with formal training, education, or accreditations. The bookkeeper's accreditation level and education may also impact the costs as some professionals will have more skills and expertise than others. 

Pricing Models for Bookkeeping Services

Bookkeepers charge for their services differently, as several pricing structures work for them. Here are some of the commonly applied pricing models:

• Hourly rate is the traditional and most used pricing model by bookkeepers and many service providers. Basically, the firm will set a rate per hour they work on your accounts. They will record every hour and that total will be charged. It’s an uncomplicated structure that’s transparent.
• The fixed-rate pricing is the typical alternative used by firms to charge for their work. It’s essentially setting a fixed fee depending on the scope and complexity of the project. Some firms also set a fixed rate on a certain number of transactions for one account; so add-on charges may incur if the amount of transactions exceeds the agreed-upon number.
  
• Value-based pricing is a pricing model that has become increasingly popular over recent years. It means that the service provider will give an upfront figure for your project based on their perceived value of that project. 
  

Each pricing model has pros and cons, so it's best to consult your team after you discuss with the service provider if their pricing model works for your business. It’s all about finding what works best for your needs.

What Factors Affect the Cost of Hiring a Bookkeeping Firm?

• Scope of service
• The complexity of financial transactions
  
• Business size
  
• Software and tools
  
• Firm experience and reputation
  
• Geographic location of the service provider
  

Just like with any other service provider, a variety of factors affect the cost of hiring a bookkeeping firm. It’s impossible to find how much your project will cost online since it’ll always depend on your business needs and project requirements.

The biggest variables that influence costs are the project’s scope, business size, and the complexity of financial transactions.

For instance, a higher volume of transactions will require more bookkeepers, adding to costs. If you require double-entry bookkeeping because your cash flow isn’t straightforward, you should also expect to pay more.

Moreover, additional costs can also come from other requirements, such as accounting software licenses and tools that can streamline the process. Solutions such as QuickBooks and Xero are necessary investments to help automate bookkeeping, costing less time and labor.

When you discuss your project with a potential service provider, communicate your bookkeeping needs and requirements so they can give a fair estimate. 

What Businesses Need To Know About Bookkeeping Software

As mentioned, bookkeeping software can save time, improve the accuracy of your reports, syncs all of your financial data, and simplify tax filing. While bookkeepers will likely have their own preferred systems, you may still need your own bookkeeping tools to keep your records straight. When choosing your bookkeeping software, you should consider:

• Features: look for software that can automate tasks such as invoicing, payroll, and bank reconciliations, which will save you significant time and reduce errors. Another important feature is data syncing; your chosen software should be able to integrate seamlessly with other financial tools and platforms you use to ensure all data is up-to-date and consistent.
• Security: ensure the software uses advanced encryption methods to protect sensitive financial data from cyber threats. Finally, user-friendliness is a must; the software should be easy to navigate, even for those who may not have a strong background in accounting, so that you can manage your bookkeeping efficiently without a steep learning curve.
  
• Ease of use: The software should feature an intuitive interface that minimizes the learning curve, allowing users to quickly grasp essential functionalities. Tools that offer step-by-step guides and tutorials can further enhance user experience, making it easier to perform tasks like invoicing, payroll management, and bank reconciliations.
  
• Cost: Comparing prices will be the best way to find a solution that fits your budget. Start by making a shortlist of bookkeeping tools that have the features you need, then schedule calls to understand the pros and cons of each option and the costs associated with each. 
  

Popular Bookkeeping Software for Small Businesses

• Quickbooks
• Zoho Books
• Freshbooks
• Xero

Geographic location is a huge factor that impacts costs. One of the best ways to save is by outsourcing bookkeeping to companies located in certain regions, such as Southeast Asia and Africa. Firms from those countries typically charge less than those headquartered in North America and parts of Eastern and Western Europe.

The price difference is due to the varying cost of living, economic conditions, and operating expenses for every country. Outsourcing from another country isn’t new anymore, but there are still concerns, especially from those who haven’t experienced working with a remote team.

Many companies might prefer to work with a bookkeeper that is close by to promote seamless collaboration.

Hiring a bookkeeping firm from overseas can be beneficial, but you should make sure you read thoroughly through their client testimonials to learn more about the experience of their previous clients.

Keep Accurate Records and Budget Wisely with the Right Bookkeeping Partner

Regardless of size, poor bookkeeping can have detrimental effects on business. Discrepancies and unbalanced accounting equations will directly hamper growth and sustainability.

It’s best to invest in effective bookkeeping solutions as soon as possible, especially for new businesses to develop a productive financial management system and a healthy bank account. It’ll be the backbone of your business’ financial success, allowing you to better navigate hurdles and thrive in the market.