Hourly wages for in-house bookkeepers range from $16.55 to $26.85, depending on the geographic location. This translates to an average annual salary that ranges from $27,500 to $71,500. We recommend QuickBooks Online, which we ranked as the overall best small business accounting software.
questions to ask yourself before hiring a bookkeeper
Once you feel comfortable with their business and how they work, then use those hours to calculate a fair value-based fee to charge in the future. Depending on the type of industry and your income goals, you can offer full-charge services, including payroll, managing fixed assets, and contributing to advisory conversations. Your value also rises when you’re better at customer service and data accuracy, finding holes, and asking good questions. You can calculate the time spent on bookkeeping tasks and translate that into dollars. If you spend too much time on bookkeeping, it’s easier to hire an accountant for a small business to keep track of your financial records, financial statements, and other elements.
Cash-Based Accounting
However, keep in mind that those higher living costs may cancel out the financial benefits of increased bookkeeping salaries. Credentials like the CB and CPB certifications may also help bookkeepers develop the superior skills that boost their overall compensation rates. Also, note that the bookkeeper rates degree-related salaries cover all accounting professionals who hold that degree. However, master’s degrees in accounting are usually designed for professionals in more advanced or technical positions. Industry observers agree that software improvements have made bookkeeping more efficient.
Factors Affecting Hourly Rates
They become an essential member of your financial team, providing financial planning, forecasting, and budgeting advice. Even though they may charge a higher hourly fee, their long-term worth to the expansion and stability of the organization can often exceed the original costs. Many restrictions bind the corporate sector, particularly in the areas of finance and taxation. Unintentional non-compliance can happen when a bookkeeper is not aware of the most recent rules or modifications. A lower hourly rate could save money, but the fines, audits, and potential legal disputes could offset those gains. Yes, many bookkeepers are skilled in specific areas like payroll and taxes.
Some people use the terms “bookkeeping” and “accounting” interchangeably, but these professionals perform different jobs requiring different skill levels. Bookkeepers handle basic, day-to-day management of a business’s finances. Accountants perform more complex tasks and help the business with long-term financial planning. Hiring a bookkeeper that totally understands your industry and its regulations is an important distinction to make when you’re looking for the right person or team to fill the job. Businesses in the hospitality or property management industries may need different financial services than business owners of a restaurant franchise.
- By looking at these rates, bookkeepers can make sure their prices are fair.
- In general, good cloud-based software makes accounting easier and reduces the hours, allowing you to charge more per hour.
- If you think they’re too high for you to set reasonable rates, consider lowering them.
- Get $30 off a tax consultation with a licensed CPA or EA, and we’ll be sure to provide you with a robust, bespoke answer to whatever tax problems you may have.
- However, as you start spending more time growing your business, you’ll tire of performing the bookkeeping tasks.
Geographic Location
- They already trust you and you already know how their business works.
- Eight key factors will impact the hourly rate you’ll charge for your services.
- The Midwest and Southern regions, with $16.60 and $15.89 average hourly bookkeeper rates, respectively, are below the national average.
- Additional expenses include benefits such as health insurance, retirement contributions, paid time off, and payroll taxes.
Businesses that have been in operation longer, manage more employees, or are growth-driven may require more robust bookkeeping services. In September 2022, Payscale placed the national U.S. average rate for bookkeepers at $18.46 per hour. Bookkeepers should research local average rates to ensure they price their services competitively. Unsurprisingly, the BLS identifies accounting, tax prep, bookkeeping, and payroll services as the industry that employs the most bookkeepers. Bookkeeper salary levels vary by location, based on factors like local labor market conditions and local living costs.
You have an accountant doing your bookkeeping
There’s good news for business owners who want to simplify doing their books. Business owners who don’t want the burden of data entry can hire an online bookkeeping service. These services are a cost-effective way to tackle the day-to-day bookkeeping so that business owners can focus on what they do best, operating the business. For business owners who don’t mind doing the data entry, accounting software helps to simplify the process. You no longer need to worry about entering the double-entry data into two accounts.
It means quality of service, efficiency, calmness, problem-solving, and confidence. Ideally, the clients whose books you review most often should have a lower rate than those https://www.bookstime.com/ that you see on a one-time or annual basis. Monthly and quarterly clients often require less work than those you see once a year because you review their books more often.
