How Much Do Bookkeeping Services for Small Businesses Cost?

This type of partnership can help you save money on shipping and storage costs, and it can also help you get your products to your customers faster. I still love my clunky, manual, self-designed spreadsheets for tracking my small business finances, and maybe you do, too. But this year, I’m going to think seriously about signing up for accounting software. Even if your company has just one staff member, and especially if your business has multiple employees, accounting software is becoming a must-have for every business owner.

How Much Should You Be Paying for Bookkeeping Each Month?

Merritt Bookkeeping costs a flat rate of $190 per month, with no restriction on the number of monthly transactions or the frequency of the service. The price is the same regardless of your business size and the number of how much does bookkeeping cost employees. Answer a few simple questions to receive a customized suggestion for the best online bookkeeping service for your business. A full-time bookkeeper handles the day-to-day accounting functions for your office.

• There are many factors to consider, such as if they can handle the accounting tasks you want to outsource and offer the services you need—at present and in the future—at a cost you can afford.
• At its core, bookkeeping is about recording financial data, while accounting is about interpreting financial data.
• So, if the business fails, the owner is personally and financially responsible for all business debts.
• Xero accounting software is for small businesses that want to streamline supplier payments and those who like detailed data visualizations and at-a-glance reporting.

Your personal accountant, for up to 50% less

I work a maximum of 20 hours per month on this particular client’s books and charge $1,000 a month. If you are doing anything with payroll, this will vary widely between each client. I work a maximum of 10 hours per month on this particular client’s books, and charge $500 a month, which still comes out to be roughly $50 an hour.

• The price is the same regardless of your business size and the number of employees.
• For example, the process is similar to hiring an in-house bookkeeper but you don’t have to add overhead costs for employees on the payroll.
• A downside of Pilot is that the main way to communicate with finance experts is via email, which can make it harder to get quick replies.
• I still do a shocking amount of bookkeeping, invoicing, and other financial tasks for my business with manual spreadsheets and processes.
• This figure reflects a compound annual growth rate of 10.5 percent across the decade.
• With headquarters in San Francisco, CA, and backing from some major venture capital firms, it’s not surprising that Pilot caters its bookkeeping and additional financial support services to startups.

Intermediate Services ($500 – $1,500+ per month):

Kelly Main is a Marketing Editor and Writer specializing in digital marketing, online advertising and web design and development. Before joining the team, she was a Content Producer at Fit Small Business where she served as an editor and strategist covering small business marketing content. She is a former Google Tech Entrepreneur and she holds an MSc in International Marketing from Edinburgh Napier University. The Forbes Advisor Small Business team is committed to bringing you unbiased rankings and information with full editorial independence.

QuickBooks Live: Best for Assistance With QuickBooks Online

However, for most small businesses, an online bookkeeping service is a better option. The short answer is much more than an online bookkeeping service or freelancer. Accounting services may look at more long-term strategy and planning. A professional accountant (or Certified Public Accountant) can help with business tax planning, file your corporate tax return, and make suggestions to help you improve cash flow.

If your business has reached to a point when you need to hire a bookkeeper, you can decide to bring in a full-time or part-time worker. Your decision on how to go about this will depend on the amount of work available and control of the process. If you hire a part-time bookkeeper, the obvious benefit is that you will be able to keep down the cost. However, you will find yourself or someone in the business doing some extra bookkeeping related tasks when the part-time employee is away.

Although the monthly cost of QuickBooks Live may seem high at first glance, it actually falls in-line with many of the other bookkeeping services on this list. The second plan, Monthly, accommodates businesses that need monthly bookkeeping services. This plan also includes a dedicated accountant, monthly profit and loss statements and balance sheets, phone, email, and chat support, as well as a Xero or QuickBooks subscription.

The leading online bookkeeping services offer many levels of security. Block Advisors is a branch of H&R Block that provides tax, bookkeeping, and payroll support. It’s a great option if you’re looking for reliable and efficient support year-round. For tax and consulting, Wave Advisors also received a low score because it only offers tax advice but not income or sales tax return filing.