How Much Does Bookkeeping Cost (In-house & outsourced)

No matter the size of your business, keeping accurate financial records, handling invoices, and preparing for tax season can be a huge headache. And if you don’t do it properly, it could end up costing you a lot more time and money in the long run. Accounting services can be pricey, but knowing what to expect can help you decide whether it’s a worthy investment for your business.
The average small business spends between $1,150 to $1,400 per month on bookkeeping. The least amount you can expect to pay in bookkeeping fees is $348 a month. Larger businesses would need a full time bookkeeper which costs between $55,000 to $85,000 a year.
This article will discuss the average cost for bookkeeping services, whether you go with in-house employees or outsource the job to an accounting firm.
There are a lot of options (part-time vs. full-time, small business vs. freelancer, etc.), so we’ll look at each of them to help you make the best decision for your situation.
Bookkeeping Cost Based On Business Size
Small Business | Medium to Large Business | |
In-House | $400 – $4,000 | $2,000 – $5,000+ |
Outsourced | $300 – $2,000 | $800 – $3,000+ |
DIY | N/A | N/A |
Professional bookkeeping services can be expensive, but the cost depends on a few different factors. For one, you may choose to have someone provide services on a part-time basis. This would cost less than hiring a full-time bookkeeper, but you should also expect fewer services.
The bookkeeper’s exact services will also impact the cost, along with how experienced the bookkeeper is and their reputation.
Your business will also influence how much these services cost. For example, a small business with fewer clients and transactions will normally cost less than services for a large business with more to keep track of.

How Much Does In-House Bookkeeping Cost?
On average, hiring a full-time bookkeeper will cost around $5000 a month or $60,000 per year. While part-time bookkeepers would earn around $2000 per month on average. In today’s remote work, many companies hire bookkeeping services in states like Florida, which have no income tax and lower cost of living.
The average hourly rate for bookkeeping is between $18 and $25 per hour, depending on the exact services provided and the bookkeeper’s skill level or experience.
Hourly Rates In the Different States
Cost for In-House Bookkeeping (not including benefits)
Part-Time Bookkeeper (60 – 96 hours per month) | $1,080 – $2,400 |
Full-Time Bookkeeper (160 hours per month) | $2,880 – $4,000 |
You’ll also have to consider the cost of benefits if you hire a full-time employee to do your bookkeeping. That can mean tens of thousands of dollars in insurance, paid time off, and other employee benefits you’ll have to pay for.
The good news for most small businesses is that they don’t need full-time bookkeeping services. If you only have a few employees and don’t do a lot of transactions or have hundreds of invoices to go through, you should be able to get by with part-time help.
By the time your business reaches the size where you may want to consider a full-time bookkeeper, you may find that your best bet is to outsource to a firm or larger company. There are plenty of options out there to find a bookkeeping package that will meet your needs no matter how big or small your business is.
How Much Does it Cost to Outsource Bookkeeping Services?
Outsourcing bookkeeping services typically cost between $300 and $5,000 per month (or more), depending on the size of your business and the specific services they provide.
Business Size (Monthly Revenue) | Average Monthly Bookkeeping Cost |
$50,000 | $400 – $1,000 |
$100,000 | $500 – $1,500 |
$250,000 | $500 – $2,000 |
$500,000 | $1,000 – $3,000 |
$1M | $1,000 – $5,000 |
$1.5M | $1,500 – $5,000 |
$3M – $5M | $3,000 – $7,500 |
Like many other services, it’s often cheaper to outsource bookkeeping to a professional rather than hire an employee to do the job in-house. You have a few different options for outsourcing, too.
For example, there are smaller, independent bookkeepers that specialize in certain services or business types. Or you may want to go with a large firm that takes on a high volume of clients for a lower rate.
Another option is to hire a freelancer. While it’s still outsourcing, hiring a freelancer is much like hiring an employee for in-house services, but you don’t have to pay for any benefits or added costs aside from the cost of the services.
Outsourcing may require paying an hourly rate for the professional’s work, or you may decide an agreed-upon set monthly rate for the services. In most cases, working out a set rate is best and makes it easier for your budget.
A key benefit of outsourcing is that it allows you to customize the services you receive to your specific bookkeeping needs. You will also be in a better position to outsource more advanced management accounting and controller.
Cost for a Freelance Bookkeeper
Hiring a freelance bookkeeper typically costs between $25 and $45 per hour, depending on their skill level and the services they provide. The amount of work and nature of your business may also impact the rates. Your geographic location can also impact the cost.
If your freelancer is highly educated and has more certifications, you should expect them to charge more than someone with fewer credentials.
Average Cost for Freelance Bookkeeper
Average Hourly Rate | $25 – $45 |
Average Weekly Rate | $375 – $1,800 |
Average Monthly Rate | $1,500 – $7,200 |
What Services Do Bookkeepers Provide? (And the Cost)
Before you decide to hire a bookkeeper, you may be wondering what services you’ll be paying for. These professionals do a lot of different things, but not every bookkeeper does every service, or they may charge extra for specific tasks.
Here are some examples of common services bookkeepers provide.
Basic Services ($300 – $500+ per month):
- Manage bank account
- Reconcile bank account (balance the “checkbook”)
- Prepare basic reports (P&L, balance sheet)
- Process vendor invoices
- Prepare customer invoices (not including collection)
Intermediate Services ($500 – $1,500+ per month):
- Everything included in basic services
- Expanded invoicing
- Preparing deposits
- Expanded reporting
- High volume transactions (200+)
- Multiple bank accounts
The bottom line is that your cost will ultimately depend on your business volume. For example, balancing a bank account that has thousands of transactions will take more time and cost you more than an account with 100 transactions.

Similarly, more employees, more payroll, and more clients will all translate to a larger cost to complete bookkeeping services.
It’s important to note that most firms charge extra for tax preparation to have you fully audit-ready, so you shouldn’t expect that to be included in your standard bookkeeping fees.
Some bookkeepers may provide payroll services, as well. That can be a huge time saver for business owners versus processing payroll themselves. Depending on what kinds of services your bookkeeper provides, they may be able to issue and process paychecks or direct deposits and make tax payments (withholding) on behalf of your employees.
DIY Bookkeeping vs. Hiring a Professional
Some small business owners decide to do their own bookkeeping. While it may be an immediate cost saver compared to paying someone else to do the job, it may not be the right choice for your business.
Bookkeepers do a lot of tedious work, but they can do it a lot more efficiently because they’re professionals. You’ll know the work is accurate, and your numbers will be in balance when your bookkeeper takes care of it.
When you do it yourself, you may miss things or make costly errors. For example, missing an invoice or not paying a bill on time. Plus, bookkeepers will ensure you’re in compliance with local and federal laws (which can ultimately save you money in the long run).
Still, the biggest benefit of hiring a professional is that you’ll save yourself a lot of time. The time you spend pouring over receipts and invoices could be much more valuable doing other things important to your business’s operations. Not to mention, if you want your business to grow and scale, you’ll need to let go of some of these tedious tasks, like balancing the books.

How Qualified is the Bookkeeping Service Provider?
While hiring highly qualified professionals guarantees quality results, it does not come cheap. The more qualified the professional, the more they are likely to charge for their service.
Basically, there are three main types of certifications available for bookkeepers.
The more certifications a provider has, the more qualified they are expected to be at what they do. As such, a provider with two certificates will charge a higher rate than one with just a single certificate.
To become a certified provider, one has to complete one or several of these certification programs:
National Association of Certified Public Bookkeepers (NACPB)
The NACPB certification program is ideal for folks with an associate degree or bachelor’s degree in accounting. The certification exam costs $600 for non-members and $400 for NACPB members.
Once all certification requirements have been met, one will earn the designation of Certified Professional Bookkeeper (CPB).
The provider can then include it in his/her business cards and marketing materials as well as charge the befitting rates.
American Institute of Professional Bookkeepers (AIPB)
The AIPB certification program is ideal for someone who does not have any formal education in bookkeeping. Certification exams and materials are $574 for nonmembers and $479 for AIPB members.
Upon completion of all certification requirements, a provider earns designation as a Certified Bookkeeper (CB). Providers with this certificate only are essentially the most affordable service providers in the industry today.
QuickBooks ProAdvisor Certification
In addition to getting certified through the AIPB or NACPB, providers may also advance their learning to get certified in QuickBooks.
The QuickBooks ProAdvisor certification program is ideal for freelance bookkeepers because it allows them to get certified for free with no strings attached.
The Bottom Line
Investing in your business is essential to its success and growth. Some of the best investments you can make as a business owner are those which allow you to focus on the core of your business while outsourcing tasks that aren’t your specialty.
One thing many business owners end up turning over to a professional is their bookkeeping. When you’re just starting out, you’ll likely want to keep a close eye on your revenue stream, and you may not have the resources to hire a professional bookkeeper.
However, as your business grows, you’ll find that your time becomes much more valuable and a scarce resource. Hiring a bookkeeper can help ensure your records are accurate, your books are balanced, and your invoices are paid on time without you having to do the work yourself.
You’ll likely find that it’s worth every penny of the investment and your only regret is that you wish you’d done it sooner.