Are you running a small business and wondering if bookkeeping is just another fancy term thrown around in the corporate world? 

Well, it’s not! Bookkeeping is a critical aspect of your business. 

Every day, during your business operations, you’re making financial transactions, whether it’s paying your suppliers, receiving payments from customers, or tracking your expenses. 

Bookkeeping records every financial move your business makes. 

It tracks your income, expenses, and all the nitty-gritty details that reflect the financial health and economic status of your business. 

Now that you know what bookkeeping is, you might be eager to hire bookkeeping services for small business for managing bookkeeping tasks for your business. But before you do, take a moment to know how much bookkeeping services actually cost in the US. 

Let’s start with the basics! 

What are the Top Advantages of Outsourcing Bookkeeping Services for Small Business?

It’s no secret that bookkeeping tasks can be time-consuming and labor-intensive. And with so many other vital business tasks, you might find it overwhelming to take care of the bookkeeping all by yourself. 

That’s where outsourced bookkeeping services come into the picture. Here are a few benefits of hiring professional bookkeeping services: 

 1. Expertise

Accurate bookkeeping requires knowledge of tax laws, financial regulations, and accounting best practices. 

When you outsource bookkeeping services for small business, you tap into the expertise of seasoned professionals who know the American financial landscape inside and out.

 2. Time and Focus

Your time is precious. And as mentioned previously, as a small business owner, you’ve got a million things on your plate. 

Outsourcing your bookkeeping frees you up to focus on what you do best – growing your business.

 3. Accuracy

Mistakes in bookkeeping can have costly repercussions. Professionals are less likely to make errors that could translate into financial headaches down the road.

 4. Cost-Efficiency

Outsourcing to a reputable firm can be more cost-effective than hiring an in-house bookkeeper. You save on employee benefits, training, and office space.

If you own an accounting firm and want a cost-effective way of managing your business, you can also opt to outsource bookkeeping for accountants. 

What are the factors that influence the cost of bookkeeping services?

Now, the cost of outsourcing bookkeeping services can vary, and it depends upon several factors. 

 1. Complexity of Business Transactions

The more transactions your business churns out, the more complex and time-consuming the bookkeeping becomes.

To understand business complexities, let’s consider two types of business. For example, if you own a bustling restaurant with frequent transactions, the financial record keeping or bookkeeping for a restaurant will be complex.

But if you own a small boutique or exclusive apparel designer store, your sales might not be that frequent or in simple words, the sales volume might be low. Thus, the financial documentation might be comparatively simple. 

Additionally, every account in your financial ecosystem (savings, credit cards, loans, etc.) adds another layer of complexity. 

 2. Frequency of Services

The frequency of the services is directly related to the complexity of your business. Some businesses require monthly check-ins with their bookkeeper. 

While others can operate smoothly with automated services, quarterly documentation or even annual services. Consequently, more frequent bookkeeping services for small business means more time dedicated to your business and thus increased overall cost.

 3. Experience and Qualifications of the Bookkeeper

The experience and qualifications of your bookkeeper matter. 

Highly skilled and certified bookkeepers often charge more for their expertise. But they can also save you money by preventing costly errors. 

It’s about finding the balance between the cost and the value they bring to your business’s financial management.

 4. Software and Technology Tools Used

In the digital age, bookkeepers have a treasure trove of software and technology tools at their disposal. 

Some use basic spreadsheets, while others harness the power of sophisticated accounting software. 

The more advanced the tools, the more efficiently and accurately they can deliver their services. However, these tools might come with additional licensing fees or software costs, which can impact your final bill.

When you plan to outsource bookkeeping for accountants, you might need more sophisticated and advanced tools to deliver the best services for your client. 

Average Costs of Bookkeeping Services in America     

 1. National Averages

On average, as a small business owner in the USA, you can approximaetly expect to pay anywhere from $15 to $50/ hour for professional bookkeeping services. However, your actual cost can vary significantly based on the factors we’ve mentioned previously.

You can also outsource your bookkeeping to other countries (remote services) where the rates are much lower. 

 2. Regional Cost Variations

In metropolitan areas with a higher cost of living, such as NYC or San Francisco, you might be looking at the upper end of that $30-$50 range. Meanwhile, in more rural areas, you could get a deal on the lower end.

 3. Different Pricing Models       

  • Hourly Rates: You pay an hourly rate for the time they spend managing your financial affairs. Rates can vary depending on experience or business complexity.
  • Flat Monthly Fees: You’ll need to pay a fixed amount each month, regardless of how much time they spend on your books. 

 4. Cost Comparison: In-house vs. Outsourcing

  • In-House Bookkeeping: If you choose to hire an in-house bookkeeper, you’re not just paying a fixed monthly salary. You’re also shelling out for benefits, office space, and potentially costly accounting software. You also need to consider appraisals. Plus, you’ll need someone with the right qualifications, which typically comes with a greater price tag.
  • Outsourcing Bookkeeping: Outsourcing your bookkeeping can be cost-effective. You typically pay for the services you need without the added overhead of benefits, costly software purchases and office expenses. Plus, you get the expertise of a professional bookkeeper without the hassle of managing an in-house employee.

Wrapping up      

Whether you need bookkeeping for a restaurant, accounting firm or e-commerce business, ensure to perform due diligence, examine past work experience and understand their range of services. 

To fully utilize the benefit of an accounting and bookkeeping service, your business goals should align with the working style of the hired firm.