Bookkeeping Rates

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					Getting the Best Bookkeeping Rates – Essential Tips
                                                   Bookkeeping rates are based on a variety of factors,
                                                   and can sometimes vary to extremes. When it comes
                                                   to a small business getting the most for its money, it
                                                   is important to understand what bookkeeping rates
                                                   are based upon, and how to find the lowest rates for
the best work.

What Are Bookkeeping Rates Based Upon?

Whether your bookkeeper charges a flat monthly fee or an hourly rate, the bookkeeping costs for your
small business will depend on a number of issues. The first of these things is the nature of transactions
completed by the business; this includes the amount of bills received and paid monthly and the number
of invoices submitted to customers each month. Bookkeepers tend to charge higher rates if a business
needs its bank account reconciled, although this usually only takes about an hour for a small business. If
a bookkeeper is expected to compose a Profit and Loss Statement, Balance Sheet, and Statement of
Cash flow, which one usually is, that can raise bookkeeping expenses for your business, but not usually
by much.

The rate that a bookkeeper will command also has to do with experience, and location. A bookkeeper
will usually try not to charge more than the competition in the area does; however, bookkeepers with
years of expertise tend to use that to their advantage and charge a larger rate than a novice would.
However, you get what you pay for, and sometimes it is worth paying higher bookkeeping costs to make
sure that the work being done is accurate, and that the service is of high quality.

Bookkeeping Rates Also Depend Upon the Type of Bookkeeper Employed

An in-house bookkeeper for a small business can often cost more money, because a salary is not the
only thing that must be paid to this employee. A small business owner must also consider the costs of
insurance, paid vacation and sick days, and a retirement fund that would go along with hiring an in-
house bookkeeper. A freelance bookkeeper’s bookkeeping rates can range from as low as $15 an hour
to as high as $100, depending on the factors previously listed in this article. Meanwhile, if a business
owner decides to hire an outsourcing bookkeeper, costs may be reduced, but rates will still strongly be
determined by the size of the business and workload being assigned to the outsourcing bookkeeper.

Different pros and cons go along with each type of bookkeeper. An in-house bookkeeper may cost more,
and take up space within the business, but be more skilled than a freelance bookkeeper may be.
Meanwhile, the freelance bookkeeper may cost the least, but use an outdated bookkeeping system, or
be non-confidential. An outsourcing bookkeeper may end up costing a little more than the freelance
bookkeeper would, but offer unparalleled benefits such as 24/7 online instant access to records.

The Bottom Line

Getting the best bookkeeping rates is not always a quick task. It takes in depth consideration of the size
of your business, amount of bookkeeping work that needs to be completed each month, and the quality
of bookkeeping work necessary to run the business effectively. Different types of bookkeepers will offer
different bookkeeping rates, and the only way to decide which type of bookkeeper will be most cost
effective for your business is to do some thorough research and consideration. It is important for a small
business owner to take his/her time with this, because it can mean the difference between spending
more than necessary, and enjoying quality work with huge savings.