With all your software linked through the cloud, payments that you make and receive can be automatically recorded to a digital ledger. The software program can then make the calculations for you, giving you an accurate picture of your total income and spending that’s updated every time your money moves. There’s a place for both bookkeeping and accounting in your small business, and as a small business owner, you’ll likely be called upon to be both at one time or another. While accounting software certainly makes the bookkeeping process a lot easier, it requires a different set of skills and knowledge to handle accounting for your business. It tracks expenses, reconciles bank statements, and generates financial statements. It provides real-time financial data and reporting, which allows businesses to make informed financial decisions.

The Xendoo team can also save you money by ensuring all your expenses are properly tracked so there are no surprises when it comes time to file taxes. We’re familiar with all the small business tax deductions and compliance requirements. While this makes it easier to control your bookkeeping costs, most small businesses require consistent services to keep their books straight. Based on a recent Bureau of Labor Statistics (BLS) report, the median hourly rate for a bookkeeper is $21.90 per hour.

Bookkeeping services pricing structure

Prices matter when it comes to running a business, but a bookkeeping service is not a place where you want to cut corners. Part of the advantage of a professional service is that it can save you money by reducing the time spent on basic tasks. It can also help you to better track your spending and analyze potential financial hazards. Depending on your bookkeeping needs, you can https://www.bookstime.com/articles/how-much-does-bookkeeping-cost pay as little as $275 a month (when billed annually). In addition to bookkeeping and tax advice, plans come with accounting software like Xero and Quickbooks, mobile apps, and profit and loss statements. Bookkeeping can help you maintain your financial records, track expenditures and revenue, and provide an up-to-date snapshot of the growth and overall health of your business.

Time how long it typically takes you to do your bookkeeping and calculate how much you would normally earn during that time. If you would make more in that time than you would spend on a bookkeeper, it may be worth hiring one. While hiring highly qualified professionals guarantees quality results, it does not come cheap.

Calculate the indirect cost of doing your bookkeeping

However, the accrual method is the required method for large corporations in the U.S., and besides that, it tends to provide you with a more accurate picture of your overall finances. You’re also responsible for communicating with your employees and allowing them to know the financial state of your firm. They need to know if the company is making some progress and how they contribute to its growth.

So let’s break down the various bookkeeping options, who they’re best for, and how much you’re likely to spend on them. We will go over the cost of all your bookkeeping options — and help you determine which one right for you. The costs a small business or nonprofit incurs for bookkeeping will depend upon many variables.

Signs it’s time to hire a bookkeeper

The QuickBooks ProAdvisor certification program is ideal for freelance bookkeepers because it allows them to get certified for free with no strings attached. Basically, there are three main types of certifications available for bookkeepers. The geographical location of your bookkeeper plays a massive role in how expensive the service will be.