How Much Should a Bookkeeper Charge Per Hour?
Making the transition from doing the books internally to paying for bookkeeper services for small businesses can be an intimidating process, especially if you’re not sure how much money to dedicate to this function. Hiring a bookkeeper can free up valuable time and let senior employees focus on executive tasks and higher-level planning. We’re taking a look at how much bookkeeping costs and what to expect when outsourcing the financial records.
How much should a bookkeeper charge per hour?
Freelance bookkeeper rates vary by region and state. Payscale.com found that the average hourly rate is $20.17 per hour, but this price is affected by a variety of factors, like:
- Region and state
- Scope of work and tasks delegated to the bookkeeper.
Bookkeepers are responsible for many essential day-to-day functions, and handle many sensitive records. The price per hour is determined by each individual bookkeeper based on their own unique set of qualifications.
How much does a bookkeeper charge per month?
Depending on the freelance bookkeeper or outsourced bookkeeping service that you use, there may be some savings with monthly bookkeeping services. Bookkeeping price packages can bundle together tasks and make it more affordable to hire a bookkeeper or bookkeeping service. The range of bookkeeping prices per month can be anywhere from $500 to $2,500 per month.
Keep in mind that this number will vary depending on how large your business is and what your individual bookkeeping needs are. Another important factor to consider is that more expensive bookkeeping services may be worth it due to the importance of getting your bookkeeping done right.
Full charge bookkeeper vs accountant: what’s the difference?
The main difference between a full charge bookkeeper and an accountant is the education and certification process, as well as the scope. Think of a full charge bookkeeper as the small picture and an accountant as the big picture.
A full charge bookkeeper is someone who is solely responsible for all of the bookkeeping tasks and details. If there is no accountant, they report directly to the C-suite with any and all records and financial information requested. There is no certification or specific education required to be a full charge bookkeeper, and they can do this job with as little as a high school degree. Different companies may ask for a certain level of accounting experience, but in general, a full charge bookkeeper is responsible for tasks like:
- Accounts payable and receivable
- Financial statements and reports
- Remit taxes (payroll tax, sales tax, etc)
- Reconcile bank accounts
- Prepare information for audits
- Organize files and maintain appropriate records
- Manage cash flow
Accountants or Certified Public Accountants (CPAs) have more education and training. The “certified” part refers to state licensing requirements, which include a certain level of education, experience, and passing a CPA exam. While an accountant can do all the things a bookkeeper does (and often will for smaller businesses that can’t afford both a bookkeeper and an accountant), an accountant picks up where the bookkeeper leaves off. In addition to dealing with the day-to-day minutia of invoices and counting the cash box, an accountant helps with financial planning, tax preparation, and the big picture of the financial health of the company.
How much does a CPA charge for bookkeeping?
A CPA may charge somewhere in the $100-200 per hour range. This will vary depending on all of the same factors as the bookkeeper. CPAs tend to be more expensive than bookkeepers due to their credentials and expanded services. When it comes to maintaining accurate and complete financial records, the importance of hiring responsible and experienced professionals cannot be overstated.
Put your financial future in the right hands with Delta Wealth
If you’re looking for down-to-earth advice and fee-only, commission-free financial planning services, you are in the right place. Delta Wealth CPAs offers a full-suite of accounting, tax, and consulting services to meet your personal or business needs. Our primary services include accounting and bookkeeping, tax planning and consultation, and audits. We also offer specialty services to meet the unique needs of each individual client, no matter the size of your organization.
Our monthly and quarterly bookkeeping services let you know your financial picture at a glance. Reclaim your valuable time with our invoicing, bill-paying, and payroll preparation services and rest easy knowing that we make sure everyone is paid and that the records are accurate and up-to-date.
Schedule a call today to learn more about how Delta Wealth can apply our experience and expertise to your unique business needs.