Ranked: The 3 Most Cost-Effective Types of Businesses to Start

cost of bookkeeper for small business

GrowthForce accounting services provided through an alliance with SK CPA, PLLC. If you already use or are planning to use QuickBooks Online for your business accounting, then it makes good sense how much does bookkeeping cost to use QuickBooks Live for your bookkeeping needs. Whether you do the bookkeeping yourself or hire someone to do it, certain elements are fundamental to properly maintaining the books.

Sage 50: Best Desktop Accounting Software

  • Ultimately, hiring a bookkeeper or financial management company will be different for every business and bookkeeper costs will vary.
  • If you have just launched your business, there are several core things you’ll find yourself trying to figure out.
  • Integration between multiple accounting platforms makes keeps all your data in one place and makes bookkeeping quicker and easier.
  • You don’t necessarily need to be on every social media platform available.
  • While you may interact with your CPA several times a year, a good Bookkeeper can assist you with setting up your accounting software, enter financial data and reconcile your accounts every month.
  • Go for professionals who have already worked with similar businesses.

Outsourcing can provide advanced and less costly bookkeeping service than a typical in-house bookkeeper. In addition to these basic bookkeeping activities, your costs will be impacted by how your accounting systems, policies and procedures, and reporting needs are set up and administered. Full-time bookkeepers keep track of all day-to-day operations, financial reporting, cash flow, tax filing, credit card accounts, customer invoices, monthly transactions, and much more. Certain choices, such as outsourcing, lend themselves better to flexibility and scalability as needs fluctuate, while others, such as in-house bookkeeping, provide better control. Assess these alternatives and define requirements upfront to match the best solution to your priorities. Are you in search of a cost-effective solution for your small business’s bookkeeping needs?

Why should you Outsource Bookkeeping?

The average base salary of an in-house bookkeeper is ​​$42,000 – $46,000. (Based on data from Bureau of Labor Statistics, Salary, Payscale, Glassdoor, and Indeed.) This comes out to $3,200 – $3,520 per month, or an average hourly wage of $20 – $22. There is no magic number to know when you’re ready to take on a bookkeeper for additional support. Instead, it’s more of a holistic view of time, resources, and the ability to become more efficient that will make or break your decision. Before we dive into the wonders of online bookkeeping, let’s take a moment to appreciate just how much of a headache traditional bookkeeping can be.

cost of bookkeeper for small business

Consider software and technology

Nick Charveron is a licensed tax practitioner, Co-Founder & Partner of Community Tax, LLC. His Enrolled Agent designation is the highest tax credential offered by the U.S Department of Treasury, providing unrestricted practice rights before the IRS. And just because you can afford a bookkeeper, doesn’t mean you need to hire one. Whether you’re a church, nonprofit, or small business, managing your bottom line is the difference between success and failure. For more on exactly what it’ll cost you to not do your bookkeeping, check out The Cost Of Not Doing Your Bookkeeping. On average, remote work is very often cheaper for employers – reportedly $11,000 cheaper – when instituted on just a part-time basis.

If you know what makes resumes appear professional and ready for employers’ eyes, you’re already off to a great start. Many personal trainers start their client acquisition process with social media pages that detail their experience in the gym along with some motivational quotes. While a certification can help expand your customer base, you aren’t legally required to have any specialized training to start this type of business. In drop-shipping, people who run e-commerce sites go to a third party to fulfill all orders. The third party is likely a wholesale retailer or other entity that runs a warehouse and shipping operation. The minimal inventory and tools needed for drop-shipping make it an especially great startup idea if you’re worried about overhead costs and physical space.

cost of bookkeeper for small business

  • The platform received a fairly high score for mobile accounting, but it could have done better if the app allowed users to enter and pay bills, just like Zoho Books.
  • With the discontinuance of QuickBooks Pro and Premier for new users after July 31, 2024, Sage is the only remaining major accounting software provider with desktop software targeting small businesses.
  • It can even be used to manage the books of multiple companies with the Premium and Quantum plans.
  • At BELAY, our current length of service with our bookkeepers is 25 months – though we have many bookkeepers that have been with us five years and more.
  • Whether you’re hiring in-house or outsourcing your bookkeeping, finding someone that has the right software tools to make finance management easy is important.

For as little as $299 monthly, Bench costs far less than you would pay a local independent bookkeeper, and you can even add on tax filing and advisory services. Running a small business is a big job and you may not have the time or experience to manage your own books. If you’re considering hiring an online bookkeeping service, one of the first things you’ll want to know is how much does a bookkeeper cost? Below is an overview of small business bookkeeping and how much it costs. Your business probably already uses tools and software to help keep your records and operations organized— adding in more applications to your tech stack can often cause more stress than it needs to.

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