Flat-Fee Bookkeeping vs. Hourly – Which Saves More?
When outsourcing your bookkeeping, one of the first decisions you will face is choosing between flat-fee pricing or hourly billing. Both options are common, but they serve different business needs – and the difference can have a big impact on your budget, clarity, and peace of mind.
Download Our Free Brochure →Let’s break down both models, compare costs, and help you decide which one actually saves you more money.
How Hourly Bookkeeping Works
With hourly billing, you pay your bookkeeper based on the time they spend each month. Rates vary depending on location, experience, and services offered – typically between $50 and $150 per hour.
Hourly bookkeepers track their time for tasks like:
- Categorizing transactions
- Reconciling accounts
- Handling invoices and bills
- Generating reports
- Communicating with you or your CPA
You might get an invoice that says “12 hours at $75/hour” for the month – but you won’t always know where the time went until after the work is done.
How Flat-Fee Bookkeeping Works
With flat-fee bookkeeping, you pay a fixed monthly rate regardless of the number of hours worked. Pricing is usually based on:
- Number of accounts
- Monthly transaction volume
- Complexity of services (e.g., payroll, multi-entity, inventory)
Typical flat-fee plans range from $150 to $600/month for most small businesses. You know your monthly cost up front and can budget accordingly.
Cost Comparison Example
Let’s say you are a growing service business with 100–150 transactions per month and a few accounts to reconcile.
Hourly Model:
12 hours x $75/hour = $900/month
(unpredictable, might vary based on how messy things get)
Flat-Fee Model:
$225/month with all core bookkeeping included
(consistent, predictable, no surprises)
In most cases, flat-fee pricing offers 40 to 70 percent savings compared to hourly billing – especially when books are clean and processes are stable.
Test Case Example
A small design agency was paying an hourly bookkeeper $85/hour. Some months cost $400, others ballooned to over $1,000 due to catch-up work or “extra communication.”
They switched to RemoteBooksOnline at $250/month. The new plan included everything: reconciliations, monthly reports, and ongoing support. The agency now saves thousands each year with zero surprise bills.
Pros and Cons of Each Model
| Pricing Model | Pros | Cons |
|---|---|---|
| Hourly | Flexible, pay for what you use | Unpredictable, can get expensive |
| Flat-Fee | Predictable cost, easy to budget, no surprises | May be too rigid if your needs change monthly |
When Flat-Fee Bookkeeping Is Better
- You want to avoid unpredictable bills
- You value consistency and budgeting control
- Your books are fairly consistent month to month
- You want to scale without watching the clock
When Hourly Might Work
- You need one-time or project-based help
- You have highly irregular bookkeeping needs
- You want flexibility to change the scope month to month
That said, many hourly engagements evolve into flat-fee plans once expectations are clearer.
FAQs
What happens if my flat-fee plan doesn’t cover everything I need?
Good providers will recommend the right tier based on your volume. You can always upgrade if needed.
Do flat-fee plans include catch-up bookkeeping?
Not always. Catch-up is usually a one-time service billed separately – then you move into flat-fee monthly service.
Can I switch from hourly to flat-fee later?
Yes. Many businesses start hourly and convert once they understand their monthly needs.
Is flat-fee bookkeeping low quality?
No. In fact, many professional firms offer flat-fee pricing with dedicated bookkeepers and CPA-ready reports.
Final Thoughts
Hourly bookkeeping might seem flexible at first, but it can lead to sticker shock and unpredictable costs. Flat-fee bookkeeping, on the other hand, gives you a clear monthly price, better budget control, and peace of mind. For most small businesses, flat-fee is the smarter, more affordable choice.
Switch to flat-fee bookkeeping with RemoteBooksOnline and never worry about surprise invoices again.
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