Bookkeeping Pricing Explained: Packages, Hourly, and Per-Transaction Models
Bookkeeping costs vary based on scope, volume, and complexity. Some firms charge hourly, others bundle services into monthly packages, and a few price by transaction count. Each model has pros and cons depending on how often you need reconciliations, reports, or support. This guide explains how each pricing structure works, what affects cost, and how to choose a plan that fits your size and stage without sacrificing accuracy or reliability.
The Three Common Bookkeeping Pricing Models
1. Hourly Pricing
Hourly rates range from $40 to $120 depending on skill level and region. It suits short-term cleanup projects or unpredictable workloads. The downside is lack of cost predictability and potential scope creep if your books are messy.
2. Monthly Packages
Flat monthly fees are the most popular option for small businesses. Packages usually include a set number of accounts, transactions, and reports. This model creates consistency, clear deliverables, and easier budgeting.
3. Per-Transaction Pricing
Some firms charge per transaction or bank connection. This can work for very small or high-volume businesses with automated systems. However, it can get expensive quickly if volume spikes during busy months.
What Actually Drives Bookkeeping Cost
Several factors influence what you pay:
- Transaction volume each month
- Number of bank or credit accounts connected
- Complexity of payroll, sales tax, or inventory tracking
- Software platform and integrations (QuickBooks, Xero, etc.)
- Level of review by senior accountants or CPAs
Understanding these inputs helps you compare providers on real value, not headline price.
Signs of Fair and Transparent Pricing
A reputable provider gives:
- Clear deliverables and timelines
- Fixed monthly pricing with scope definition
- Transparent billing for extra services like catch-up or cleanup
- No hidden fees for reports or software access
If a quote looks too low, confirm what it actually includes. Low cost often means minimal review or missed reconciliations that cost more to fix later.
How to Choose the Right Pricing Model
For most small businesses, a monthly package is the sweet spot. It balances predictable cost with professional oversight.
- Choose hourly only for cleanup or short projects.
- Use per-transaction if you are highly automated and want granular control.
- Move to custom pricing once you grow into multi-entity or advanced reporting needs.
FAQs
What is the average monthly cost for bookkeeping?
Most small businesses spend between $250 and $800 per month depending on volume and complexity.
Why do some bookkeepers charge hourly?
Hourly billing is common for one-time work like cleanup or backlog catch-up where effort is unpredictable.
Is cheaper bookkeeping always worse?
Not always, but very low prices often mean limited deliverables or lack of review, which leads to costly errors later.
How can I lower my bookkeeping cost?
Automate bank feeds, keep receipts organized, and limit unnecessary add-ons. A clean process saves time and money.
