How Much Should I Pay for Bookkeeping Services?

As a small business owner, budgeting for bookkeeping is an important part of managing your finances. Bookkeeping keeps your accounts organized and tax-ready, but costs can vary widely. Some businesses might pay only a couple hundred dollars a month, while others spend closer to $1,000 for more complex needs. In this guide, we’ll break down typical bookkeeping price ranges and what influences them, so you can make an informed decision.

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Average Bookkeeping Cost Ranges

How much you pay for bookkeeping services each month will depend on your business size and complexity. Here are the average monthly cost ranges for different types of small businesses:

• Freelancers or Solopreneurs: Approximately $150 – $400 per month. This is the low end of the range, covering basic bookkeeping for a self-employed individual or very small business. You’ll get essential tracking of income/expenses and bank reconciliation for a straightforward operation.
• Small LLCs or Single-Entity Businesses: Around $400 – $1,000 per month. Businesses with moderate activity (multiple accounts, employees, or more transactions) fall in this middle range. The bookkeeper may handle invoicing, bill payments, and monthly financial statements in addition to basic tracking.
• Multi-Entity or Complex Firms: Roughly $1,000+ per month. Larger small businesses or those with multiple entities, departments, or highly complex finances can expect to pay on the higher end. This level might include managing several sets of books, payroll, extensive accounts payable/receivable, and detailed reporting.

These ranges cover typical outsourced bookkeeping services on a monthly flat-fee plan. If you hire a full-time in-house bookkeeper, costs will be much higher (often $40,000+ annually in salary), and part-time contractors may charge hourly rates instead of a fixed monthly fee. For most small businesses, outsourced monthly bookkeeping packages provide the best value and predictability.

Factors That Affect Bookkeeping Pricing

Every business is different. Here are the main factors that influence how much bookkeeping services cost:

• Transaction Volume: The number of transactions processed each month is a major cost driver. If you only have 20 transactions a month, your bookkeeping will take far less time than a business with 200+ transactions. Higher volume means more data entry and reconciliation work, which increases the fee.
• Business Complexity: The more complex your business finances, the more you should expect to pay. For example, a simple consulting business with one bank account is easier to manage than a company with multiple bank accounts, credit cards, loans, and perhaps multiple entities or locations. Handling things like inventory, job costing, or departmentalized finances will also require extra bookkeeping effort.
• Services Included: Think about what tasks you need the bookkeeper to handle. Basic bookkeeping typically includes recording transactions and reconciling accounts. If you need additional services – such as payroll processing, managing accounts payable/receivable, or preparing invoices – these often come at a higher cost due to the extra work involved. Likewise, frequency matters: weekly bookkeeping or daily transaction categorization will cost more than a simple monthly review.
• Software and Integrations: The software your business uses can impact pricing. Most bookkeepers work with QuickBooks, Xero, or similar accounting software. If your bookkeeping involves complex integrations (like syncing with e-commerce platforms or POS systems) or specialized software, the provider may charge more for that complexity. On the other hand, many online bookkeeping services include the cost of accounting software in their fee, which can save you money on subscriptions.
• Location and Provider Type: Bookkeeping rates vary by region. Local bookkeepers in high-cost urban areas tend to charge more than those in smaller towns. For example, businesses in large cities might see higher monthly fees than those in rural areas. (See our bookkeeping cost by state guide for regional pricing differences.) Additionally, the type of provider matters – hiring a freelance bookkeeper might cost less than a large accounting firm, and remote/outsourced bookkeeping services often offer competitive flat rates regardless of your location.
• Experience and Credentials: A highly experienced bookkeeper or a CPA will typically charge higher rates than a less experienced bookkeeper. If your books require oversight by a CPA or involve complex accounting principles, you’ll pay a premium for that expertise. For many small businesses, a certified bookkeeper or bookkeeping firm with CPA review (like RemoteBooksOnline provides) offers a good balance of quality and cost.

By considering these factors, you can understand why quotes may differ from one provider to another. For instance, two businesses with the same revenue might be charged differently if one has far more transactions or needs extra services. It’s a good idea to get a customized quote based on your specific situation.

What Do Bookkeeping Services Include?

Whether you pay $200 a month or $800 a month, it’s important to know what you’re getting for the price. Most professional bookkeeping services will handle core tasks to keep your finances on track. Here’s what’s typically included in a bookkeeping service:

• Recording Transactions: Your bookkeeper will record all your business income and expenses, usually by categorizing transactions from your bank, credit card, and other accounts. Every sale, invoice payment, bill paid, or expense should be entered into your accounting system in the proper category.
• Bank Reconciliation: Each month, the bookkeeper reconciles your financial accounts – this means checking that your accounting records match your bank and credit card statements. Regular reconciliations catch errors or omissions and ensure your books reflect your true cash position.
• Financial Reports: Good bookkeeping services provide you with standard financial statements, typically on a monthly basis. Expect a Profit and Loss statement (Income Statement) and Balance Sheet each month, and sometimes a Cash Flow statement or other reports. These reports give insight into your business’s performance and are often reviewed by a CPA for accuracy before being delivered to you.
• Accounts Payable and Receivable (Optional): Some bookkeeping packages include managing your outgoing bills and customer invoices. This can mean the bookkeeper will track who you owe (vendor bills) and who owes you (customer payments), ensuring your bills are paid on time and your customers pay you. Not every service includes A/P or A/R by default, so clarify if it’s included or costs extra.
• Payroll (Optional): If you have employees, you may need payroll services. Bookkeepers don’t always run payroll themselves (payroll is often a separate service), but a full-service bookkeeping firm might handle or coordinate payroll for an added fee. At minimum, your bookkeeper will integrate the payroll data into your books so that wage expenses and payroll taxes are recorded properly.
• Tax-Ready Books: One of the biggest benefits of professional bookkeeping is ending the year with organized, tax-ready financials. Your bookkeeper will make sure receipts are recorded, accounts are reconciled, and everything is in the right category so that when tax season comes, your CPA (or tax software) can easily use the data. Many bookkeeping services work closely with tax preparers or even include annual tax filing support, but at the very least, they’ll provide clean books for your CPA.
• Consultation and Support: Most providers will answer your questions and provide basic financial guidance as part of their service. You should be able to contact your bookkeeper for clarification on reports or transactions. Some services include periodic review calls or even fractional CFO advice at higher pricing tiers. Make sure you know how much communication and support is included in your plan.

Always clarify what is included when comparing bookkeeping services. For example, one bookkeeper’s $300/month package might include quarterly tax prep, while another’s $300 package might strictly cover transaction entry and reports. Knowing the scope of work ensures you’re comparing prices accurately.

Catch-Up and Cleanup Bookkeeping

What if you haven’t done any bookkeeping for several months (or years)? Or what if your books are a mess of errors? In these cases, you’ll likely need catch-up or cleanup bookkeeping, which is usually billed separately from ongoing monthly service.

• Catch-Up Bookkeeping: This refers to bringing previous months’ books up to date if you fell behind. For example, if you haven’t reconciled any accounts for six months, a bookkeeper will need to go back and record all those past transactions, reconcile each month, and fix any discrepancies. Catch-up work is often a one-time project or a short-term engagement. Because it can be labor-intensive, many providers charge either an hourly rate or a flat project fee for catch-up. It is not typically included in your standard monthly fee.
• Cleanup Bookkeeping: Cleanup is similar, but usually refers to fixing mistakes and tidying up an existing bookkeeping file. If your QuickBooks or Xero file contains errors – such as miscategorized transactions, duplicate entries, unreconciled accounts, or lots of old unreconciled transactions – a bookkeeper can perform a cleanup. This might involve correcting journal entries, properly categorizing transactions, and adjusting account balances. Like catch-up, cleanup is an extra service billed in addition to regular bookkeeping.

Are there extra fees for catch-up or cleanup?

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Yes – you should expect to pay extra if you require these services. Bookkeeping firms will assess the state of your books to provide a quote. Often, catch-up or cleanup is billed at a higher hourly rate or a fixed fee based on the amount of work. For instance, RemoteBooksOnline offers catch-up bookkeeping at a flat rate based on your backlog (how far behind you are and how complex your books are. Once the historical books are caught up and accurate, you can then transition into an ongoing monthly bookkeeping plan.

The good news is that catch-up and cleanup are usually one-time costs. After your books are clean and up to date, your regular monthly bookkeeping should keep you on track so you (hopefully) won’t need intensive cleanup again. It’s much easier (and cheaper) to maintain clean books than to fix neglected ones, so even if it hurts to pay for catch-up now, it will save you headaches in the long run. (If you’re behind on your books, don’t hesitate to check out our catch-up bookkeeping services or QuickBooks cleanup to get back on track.)

Try RemoteBooksOnline for Free

Managing your bookkeeping doesn’t have to be expensive or stressful. RemoteBooksOnline offers affordable, flat-rate bookkeeping services for small businesses – with monthly plans starting at just $150. We handle everything for you: recording transactions, reconciling accounts, providing CPA-reviewed financial statements, and even catch-up work if you need it. There are no hourly charges and no surprise fees, ever.

Want to see if it’s right for you?

You can start with RemoteBooksOnline for free – get your first month of bookkeeping at no charge. This lets you experience our service with zero risk. We’re confident that once you see the time and stress you save, you’ll understand why so many small business owners trust us with their books. Focus on growing your business, and leave the bookkeeping to us.

Ready to get started? Contact RemoteBooksOnline today and claim your first month free!

FAQs

How much should I budget for bookkeeping?

Bookkeeping costs can vary depending on the size, complexity, and transaction volume of your business. On average, small businesses should budget between $300 to $600 per month for professional bookkeeping. Very simple businesses may only need $150 per month, while larger or more complex operations with payroll, inventory, or multi-entity structures might spend $800 to $1,000 monthly. While this may seem like a significant expense, it’s important to remember that investing in accurate bookkeeping helps you avoid costly errors, maximize deductions, and stay compliant — ultimately saving money and stress, especially during tax season.

Is bookkeeping charged hourly or monthly?

Bookkeepers may charge either hourly or on a monthly basis, depending on the service model. Hourly rates typically range from $30 to $100 or more, depending on location and experience. Hourly billing works well for one-time projects like cleanup or setup. However, it can lead to unpredictable costs if your needs vary from month to month. Many small businesses prefer flat-rate monthly pricing because it provides consistent billing and clear expectations. Services like RemoteBooksOnline offer flat-fee monthly packages, which include ongoing support and reporting. If you’re looking for stability and scalability, monthly pricing is often the better choice.

Are there extra fees for catch-up bookkeeping?

Yes. Catch-up bookkeeping — also called cleanup — involves updating and fixing past records, which is usually priced separately from regular monthly service. These fees can be hourly or quoted as a flat fee based on how many months or years need to be caught up. Cleanup often requires detailed work, like reconciling old accounts, correcting errors, and reclassifying transactions, so providers like RemoteBooksOnline evaluate the backlog before quoting a one-time fee. Once your books are current, you can transition into a regular monthly plan. Transparent cleanup pricing helps avoid surprise charges while getting your books back on track.