How Much Does It Cost to Start a Bookkeeping Business

In addition to these basic bookkeeping activities, your costs will be impacted by how your accounting systems, policies and procedures, and reporting needs are set up and administered. You cannot afford to hire people on payroll right from the first how much does bookkeeping cost month. Instead, hire freelancers to offer basic bookkeeping services to save on fixed recurring expenses every month. Not every business has the same bookkeeping needs as others, and their needs will likely change as the company experiences growth.

Generally, an office space would require a series of leasehold improvements in areas of HVAC, plumbing, flooring, finishing, and painting. The costs for these could run anywhere from a few thousand dollars up to $250,000. Getting your office space ready is another prominent expense you will incur for your bookkeeping business. For instance, if you consider opening your bookkeeping business in bustling cities like New York or San Fransisco, be prepared to spend large sums of money every month on rent. Generally, the rent at these places can soar as high as $80,000 per month. All you need to do is enter your sales, costs, and other financial assumptions and let the tool calculate monthly/quarterly/ and yearly projections for you.

Picking the Right Bookkeeping Option for Your Business

The average salary for a bookkeeper in the United States in 2018 is around $14-$17 per hour (per Indeed) which is about $2,400 to $3,000 per month. The average annual salary for bookkeepers is between $37,000 to $47,000 (per Salary.com). In addition to the hourly charges, state & federal laws will also likely require you to pay for the employee’s benefits such as health insurance and vacation time. These benefits add a significant amount to the annual cost of an in-house bookkeeper. The highest referral a business owner can find is from a friend in the industry. If you’re looking at an online bookkeeping service, verify their ratings.

But it can still be overwhelming to handle your financial recordkeeping on your own. On the other hand, larger companies with a higher volume of complex transactions will need more hours. An outside bookkeeper will charge them at the higher end of the range. If you were to ask me personally, I would hire a bookkeeper as soon as I started the business.

Bookkeeping Tools and Software

QuickBooks Live is best for business owners who want to get their bookkeeping in order but don’t have the time or resources to do it. One of the biggest advantages of outsourcing your bookkeeping is the cost. On average, a bookkeeping firm will charge anywhere between $300 to $2,000 per month depending on the amount and complexity of work required. The first thing you need to do is determine your company’s needs.

• Jesus Morales is an Enrolled Agent and has 7 years of bookkeeping and tax experience.
• These include basic and full-service bookkeeping, where the decision largely depends on your business goals and needs.
• Asking yourself these questions is vital to knowing the right bookkeeping pricing for you.
• We reviewed multiple accounting software options using a detailed methodology to help you find the 9 best online bookkeeping services for small businesses.
• Some accountants or CPAs handle both bookkeeping and accounting services.
• Whatever structure and pricing you go with, make sure to lay it all out on the table for current and prospective clients.