How Much Do Bookkeepers Charge?
Bookkeepers generally cost between $300 to $1000 per month, depending on the size of the business and the specific needs it has.
Smaller businesses can expect to pay between $300 and $600 per month, while larger businesses pay more as their needs are greater in terms of the number of transactions processed, accounts to be reconciled, and people on the payroll.
Below, I’ve gone deeper into the inclusions at varying price levels and the value a bookkeeper offers businesses regardless of their size.
Bookkeeper Pricing & Inclusions
Pricing & Inclusions
Transactions processed per month
Bank accounts to be reconciled
Credit cards to be reconciled
Receive money transactions
Spend money transactions
Accounts payable allocations
Preparation of monthly IAS
Preparation of quarterly BAS *
Monthly profit and loss statement with YTD
Monthly review of bank & credit card reconcilliations
Enter and match customer receipts monthly
Enter and match supplier payments monthly
Quarterly advisory meeting (1 hour), including strategic business advise and consulting
Monthly 1-hour face-to-face meeting with your bookkeeper
Support for software add on
Unlimited bookkeeping support by email & phone
Payroll for up to **
Basic
$340
p/month
< 40
1
-
0
Extra
$500
p/month
< 80
1
1
3
Growth
$660
p/month
< 160
2
1
5
Enterprise
POA
< 280
3
2
9
- * – Monthly BAS is $150 per lodgement
- ** – Payroll Setup $50/employee, Payroll Processing $10/employee/per pay run.
- • Unregular pay run and pay rate might incur additional charge
- • Support Packages available for DIY users & Payroll Processing, Training $150/hr
- • Monthly 1-hour Face-to-Face Meeting $165/month
- • All prices excluding GST
Factors Affecting the Cost
When determining the cost of bookkeeping services, it’s essential to consider several important factors that affect the level of service you require, including:
- Complexity of financial transactions: More complex transactions necessitate a higher level of expertise.
- Volume of work required: More extensive bookkeeping needs lead to higher costs.
- Nature of the bookkeeping service: Costs vary depending on whether the bookkeeper is freelance or affiliated with a firm.
- Experience and qualifications of the bookkeeper: Higher expertise and credentials can increase rates.
- Geographical location: Location affects costs due to varying local market rates.
- Billing structure: Bookkeeping services may charge on an hourly, monthly, or project basis, reflecting the customised approach to each client’s requirements.
- Number of transactions processed monthly: Higher volumes of transactions require more time and effort to manage.
- Bank accounts to be reconciled: Each account adds to the complexity of the bookkeeping process.
- Credit cards to be reconciled: Similar to bank accounts, each credit card account requires careful reconciliation.
- Number of people on your payroll: Managing payroll for more employees involves additional work, affecting the cost.
- Employment structure: Whether you are hiring an in-house bookkeeper or outsourcing significantly affects the cost.
In-House vs Outsourced Bookkeeping Costs
The cost of in-house versus outsourced accountants can vary significantly based on several factors, including the size of the business, the complexity of financial transactions, and geographic location.
In-house accountants are typically full-time employees, which means businesses must cover their salaries, benefits, taxes, and any overheads related to their workspace.
The annual salary for an in-house accountant in Australia can range widely, but sits between $70k and $80k as of February 2024 according to Seek.
On the other hand, outsourced accounting services can offer more flexibility, with costs depending on the level of service required.
Small to medium-sized enterprises might find outsourced services more cost-effective, as they can pay for only the services they need, without the ongoing costs associated with employing someone full-time.
Furthermore, outsourcing can provide access to a team of experts and advanced accounting technologies without the direct investment in training and software.
This choice between in-house and outsourced accounting services ultimately depends on the specific needs, budget, and strategic goals of the business.
What are the Responsibilities of a Bookkeeper?
Bookkeepers have a range of responsibilities that are critical for business management and growth, including:
| Bookkeeping Services & Responsibilities |
|---|
| Consistent recording of financial transactions |
| Managing payroll, invoices, and debts |
| Preparation and lodgement of Business Activity Statements (BAS) |
| Handling single touch payroll for tax and superannuation |
| Producing management and financial reports (balance sheets, profit and loss statements) |
| Streamlining bank and credit card reconciliations |
| Bank account reconciliation |
| Preparation of monthly IAS |
| Preparation of quarterly BAS |
| Consulting on strategy |
| Managing bookkeeping software |
Summary
Bookkeeping services typically cost between $300 and $1000 per month, a variance primarily dictated by the size of the business and its specific needs.
Smaller enterprises tend to incur costs at the lower end of this spectrum, whereas larger organisations, due to their broader scope of transactions, account reconciliations, and payroll requirements, are subject to higher charges.
In-house bookkeepers typically warrant a salary of $70k to $80k per year, while outsourcing your accounting allows you to match your costs to your level of needs. This is particularly beneficial for small businesses.
If you live in WA and are looking for help with your accounts, our bookkeepers in Perth are here to help you manage and grow your business effectively.
