The cost of bookkeeping for small businesses is directly related to the complexity of your business operations. There are a couple of options to consider when choosing how to handle your bookkeeping for small businesses. You could hire in-house help or outsource the task to an outside firm. The factors that can impact the cost include bookkeeper hourly rates, flat rates, and fixed prices, and whether you hire a company or an individual.

Full-time bookkeeper on staff

Full-time employees, regardless of experience level, will require some time to learn about your specific business and possibly even your industry if you are hiring someone from outside your industry.

Full-time employees are beneficial in that you have someone there 40 hours per week to maintain bookkeeping records, run reports, and answer questions. That consistent availability comes at a price. A full-time staff member will always be the most expensive option.

With a full-time bookkeeper, you must provide a competitive annual salary, training, the equipment and supplies needed to do the job, office space, workers’ compensation insurance, health benefits, sick leave, and vacation time. This can add up and be cost-prohibitive to many small businesses.

Part-time bookkeeper on staff

Part-time employees can be more cost-effective but may not be able to keep up with the demand of the job as the business and number of transactions grow. A part-time staff member will also require some benefits and insurance coverage, as well as the previously discussed tangible items like office space, supplies, and technology. If you’re considering a part-time staff member, be sure that they can maintain the books in the hours available to avoid stress and financial strain due to incomplete work.

Outsourced bookkeeper 

When a small business can no longer maintain its books on its own time, it may outsource to a professional bookkeeping company, whether that’s a freelance individual or a larger firm. While there is a monthly cost to retain a bookkeeping firm, that individual or team will have a breadth of experience that the small business may not be able to afford if hiring an employee. 

These experts can help ensure timely and accurate bookkeeping, plus offer suggestions for ways to grow the businesses based on the financial picture. They may also flag problem areas that could inhibit growth or create issues with the state of federal compliance. Hiring an experienced bookkeeping company can bring the expertise needed to move your business forward in a stable and strategic way. 

What affects the cost of bookkeeping?

Overall, the main factors that impact the cost of bookkeeping are experience, the scope of work to be completed, and the hours required to complete work. An outsourced bookkeeper is often the most cost-effective because you get an experienced level of support for exactly the tasks you need completed.

Instead of budgeting for a full employee compensation package and investing all of the time that comes with hiring an employee, you can contract with a bookkeeping company for the specific services and value your company needs to move forward. 

If it’s time to explore your bookkeeping options and you’d like some advice, I offer short, complimentary consultations. Contact me to find a time.