Flat-Rate vs. Hourly Bookkeeping: What’s Best for Small Business?
If you’re a small business owner searching for bookkeeping help, you’ve probably come across two pricing models: flat-rate bookkeeping and hourly bookkeeping.
Download Our Free Brochure →At first glance, hourly pricing may seem more flexible. But flat-rate bookkeeping offers a level of predictability and control that many small businesses prefer.
In this article, we’ll break down the differences, pros and cons, and how to decide which approach makes the most sense for your business.
Hourly Bookkeeping: What You Need to Know
Hourly bookkeepers typically charge between $30 to $80 per hour, depending on experience and location. Some charge even more if you’re in a major city or need specialized help.
Pros:
- You pay for what you use (in theory)
- Can be cost-effective for very light or occasional bookkeeping
- Flexibility to scale hours up or down
Cons:
- You don’t know the final cost until after the work is done
- Can be penalized for messy books or high volume
- Prone to scope creep, especially around tax season
- No incentive to finish faster
You may start with a small monthly invoice, but as your needs grow or tax season arrives, your costs can spike.
Flat-Rate Bookkeeping: What It Means
Flat-rate bookkeeping is a monthly subscription model. You pay one fixed price (e.g., $150/month) for a defined set of services – usually including transaction recording, reconciliations, and financial reports.
Pros:
Download Our Free Brochure →- Transparent, predictable pricing
- Easier to budget
- Encourages efficiency and automation
- Often includes software like QuickBooks
- No hourly billing surprises
Cons:
- May be less flexible if your business has big seasonal changes
- Some providers may exclude extra services like payroll or historical cleanup
At Remote Books Online, monthly flat-rate plans start at just $150 and include software, reporting, and dedicated bookkeeper support.
Which One Offers Better Value?
Let’s compare:
| Feature | Hourly Bookkeeping | Flat-Rate Bookkeeping |
|---|---|---|
| Cost Predictability | Variable each month | Fixed price, easy to budget |
| Incentive to Be Efficient | Slower = more billing | Faster = more clients served |
| Surprise Fees | Common during tax season | None (everything scoped upfront) |
| Includes Software | Usually not | Included with RBO |
| Best For | Very small / one-off needs | Growing small businesses |
Real Use Case: From Hourly Chaos to Predictable Pricing
A small online retailer in Arizona used a local hourly bookkeeper for years. The rate seemed reasonable – $40/hour – but by Q4, invoices started hitting $800+ per month. Every email, correction, or delay increased their bill.
They switched to Remote Books Online. Now, they pay one flat fee each month. Their reports are on time, their CPA is happy, and they haven’t seen a surprise invoice in over a year.
When Flat-Rate Bookkeeping Makes the Most Sense
- You want cost control and no billing surprises
- You need consistent monthly reports for planning or taxes
- You’re behind on your books and need catch-up bookkeeping
- You want to include QuickBooks cleanup services or software in your service
- You need a long-term bookkeeping solution – not one-off help
FAQs
Is flat-rate bookkeeping really unlimited?
We offer fixed pricing based on your business size, volume, and services. You’ll know upfront what’s included – no surprises.
What if my transaction volume grows later?
We’ll review your plan and upgrade only if needed. You’ll never get hit with random hourly overages.
Do you charge extra for QuickBooks software?
No. All Remote Books Online plans include the software license.
What if I’m behind on my books?
No problem. We offer catch-up bookkeeping to bring you current – fast.
Final Thoughts
Hourly bookkeeping might work for one-off projects, but flat-rate bookkeeping gives small business owners peace of mind and better control.
With Remote Books Online, you pay a fixed monthly fee. You get a dedicated team, your books stay clean, and your reports arrive on time – no matter how complex things get behind the scenes.
Request a free quote now and try your first month free.
