The cost of hiring a bookkeeper varies widely depending on whether you hire in-house or outsource. This page breaks down real world costs, hidden expenses, and why most small businesses overpay when they hire internally too early. Understanding true bookkeeping costs helps you choose the most efficient option without sacrificing accuracy.
What Business Owners Mean by Hiring a Bookkeeper
When most business owners say they want to hire a bookkeeper, they usually mean one of three things
Hiring a full time or part time employee- Hiring a freelance or contract bookkeeper
- Outsourcing bookkeeping to a service provider
Each option comes with very different costs and risk profiles.
Cost of an In-House Bookkeeper
Hiring an in-house bookkeeper is the most expensive option.
Typical annual costs include
- Salary ranging from forty thousand to sixty thousand dollars
- Payroll taxes and benefits
- Software licenses and training
- Management and supervision time
The true cost of an in-house bookkeeper often exceeds seventy thousand dollars per year.
Hidden Costs of Hiring Internally
Beyond salary, internal bookkeeping introduces hidden costs
- Errors that go unnoticed without review
- Work stopping during vacations or turnover
- Replacement and retraining expenses
- Dependency on a single individual
These risks increase as the business grows.
Cost of Outsourced Bookkeeping
Outsourced bookkeeping is priced as a flat monthly service.
Most small businesses pay
- Between one hundred fifty and two hundred fifty dollars per month
- Based on transaction volume and complexity
Outsourcing includes software, standardized processes, and review layers that internal hires often lack.
Freelance Bookkeeper Pricing
Freelance bookkeepers are typically billed hourly.
Common drawbacks include
- Unpredictable monthly costs
- Limited availability
- No formal review or backup
Hourly rates may appear cheaper but often exceed outsourced pricing over time.
Cost Comparison Summary Together
In-house bookkeeper
- Highest cost
- Highest management burden
- Single point of failure
Freelance Bookkeeper
- Variable cost
- Limited accountability
- Inconsistent coverage
Outsourced Bookkeeping
- Predictable monthly pricing
- Team based delivery
- Built in oversight
For most small businesses, outsourcing delivers the best value.
When Hiring Internally Makes Sense
Hiring an in-house bookkeeper may make sense if
- Transaction volume is extremely high
- Daily on-site processing is required
- The business has a full accounting department
Most small businesses do not meet these criteria.
Why Small Businesses Overpay for Bookkeeping
Many businesses hire too early due to:
- Fear of losing control
- Misunderstanding outsourced capabilities
- Belief that bookkeeping requires physical presence
Modern bookkeeping is cloud based and does not require an in-house employee.
How to Reduce Bookkeeping Costs Without Risk
Outsourcing allows businesses to:
- Start small and scale up
- Avoid long-term employment commitments
- Get professional results immediately
This approach lowers cost while improving accuracy.
Want to know what bookkeeping should actually cost for your business.
Request a free bookkeeping review and receive a fixed monthly quote based on your transaction volume.