How Much Do Bookkeeping Services for Small Businesses Cost?

bookkeeping fees for small business

If you’re unsure if cash basis bookkeeping will work for your business, talk to us. We’d be happy to understand the needs of your business and determine if Bench is a good fit for you. Once you securely connect your financial accounts to the Bench platform, we’ll pair you with a dedicated bookkeeper. During your free trial, we’ll walk you through the services included in each Bench bundle to determine which is the best fit for your business. Your accountant will need to fill in the gaps in your records — which means they’ll ask you to collect all your proof of purchases from the last year. On the other hand, larger companies with a higher volume of complex transactions will need more hours.

Like many other services, it’s often cheaper to outsource bookkeeping to a professional rather than hire an employee to do the job in-house. You’ll also have to consider the cost of benefits if you hire a full-time employee to do your bookkeeping. That can mean tens of thousands of dollars in insurance, paid time off, and other employee benefits you’ll have to pay for. For example, a small business with fewer clients and transactions will normally cost less than services for a large business with more to keep track of. When deciding if you should do your bookkeeping yourself or hire outside help, the decision is entirely up to you.

Basic Bookkeeping for Small Businesses

You’ll want to periodically back up your files and ensure that you’re adhering to security protocols so your information isn’t compromised. For example, if you need to save a copy of a document separately from other files, you may put it in its own password-protected folder inside your document management software. Remember that if you have employees, you’ll also need to account for payroll tax. If you’re unsure about your tax obligations, you may want to talk to a professional accountant or tax expert for advice.

We use a pricing model that lists out all of the services that we provide and the cost of each piece. This way, we can provide detailed quotes and our clients can choose the exact level of service that is right for them at any given time. These examples are all technically small businesses, but we’ve labeled them “Startup”, “Small”, “Medium” and “Growing” for the purpose of this demonstration. Under the federal Protecting Americans from Tax Hikes (PATH) Act, the IRS cannot issue Earned Income Tax Credit (EITC) and Additional Child Tax Credit (ACTC) refunds before mid-February. Should show an updated status by February 17 for most early EITC/ACTC filers.

Accounting Costs for Small Businesses

It’s important to note that most firms charge extra for tax preparation to have you fully audit-ready, so you shouldn’t expect that to be included in your standard bookkeeping fees. But if it’s more complex, like building out your financial outlook, you might how much does bookkeeping cost be better off with hiring an accountant. However, if your business is growing or if you have plans to expand, then hiring an experienced bookkeeper or accountant may be a good idea. Tax and business tips from Joe specifically for Canadian business owners.

At BELAY, you have one dedicated bookkeeper that completes all work on your account. We are intentional in our placement as we want the bookkeeper to be a great fit for your team. 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. For S-Corps, C-Corps, and Partnerships, you can add-on personal filing for 1 partner or shareholder for just $59/mo when billed annually or $69/mo when billed monthly.

Assign Transactions to Specific Accounts

For example, if you have the time to handle bookkeeping yourself, you might continue to do so to save money. On the other hand, if you’d like to use the time you spend bookkeeping focusing on other aspects of your business, then the cost of a bookkeeper may be worth it. While these exact figures can change over time, the cost comparisons of covering your bookkeeping and accounting needs can vary greatly depending on the type of individual you hire. Whether you opt for basic bookkeeping or full-service bookkeeping and accounting, either option can help you be better prepared come tax season. There are two main types of bookkeeping to be aware of when deciding what type of bookkeeper to hire. These include basic and full-service bookkeeping, where the decision largely depends on your business goals and needs.

For full time services, expect to pay from $3,000 to $4,500 per month without the benefits. For outsourced bookkeeping, the price is from $500 to $2,500 per month for basic bookkeeping tasks. In this article, AdvisoryHQ will look at bookkeeping services fees and small business accountant fees to help small business owners understand the cost of average accountant fees. What is the difference between small, medium, and large client accounts for bookkeepers?