The accounting industry is moving toward flat-rate subscriptions for their pricing. If you use an accounting professional with this type of pricing, the monthly rate would be based on the amount of transactions and financial accounts, complexity, and additional tasks included (such as paying bills or sending invoices). This pricing has a huge range from as low as $125/mo to over $5000/mo. If I had to give an average, I’d say that the typical small business ranges between $500 – $2000 /mo in bookkeeping costs.

For bookkeepers that charge an hourly rate, I would describe bookkeepers and their rates in 3 tiers.

The In-House Bookkeeper

Pro: This type of bookkeeper typically works like an employee. If you have enough tasks that you need a bookkeeper to work daily, or if you want more flexibility in the assigned tasks, for example including some admin work like for an office manager role, this bookkeeper may work well for your company.

Con: This type of bookkeeper typically has limited accounting knowledge due to working only for a couple of companies and may not be able to offer advice. Typically needs the support of a more experienced accounting professional for training or advising.

The Contract Bookkeeper
$50 – $100 / hour

Pro: This bookkeeper typically has their own business and has more accounting knowledge to offer than the In House Bookkeeper. They’ve worked with a variety of businesses and software and will be able to offer advice and help you to build bookkeeping processes. If accounting is not your strong suit or you do not have an accounting team, this type of bookkeeper is ideal for setting up your processes and keeping your business on track.

Con: This type of bookkeeper may only complete accounting related tasks specified in their contract so less flexibility than the In House Bookkeeper.

The Expert
$100 – $300 /hr

Pro: This bookkeeper is a CPA or an accounting professional with many years of experience. These types of bookkeepers are most valuable as advisors and typically take on a CFO role.

Con: This type of bookkeeper has the highest cost per hour and may be unaffordable for some small businesses.

Please keep in mind that this is an oversimplification. Many bookkeepers could overlap between some of these descriptions or pricing, but this at least gives you a general idea of the types and cost range.