If you want to hire a cheap bookkeeper without ending up with messy books and IRS headaches, this guide gives you the exact framework.
According to the U.S. Bureau of Labor Statistics, the median hourly wage for bookkeepers is around $23 – but what small business owners actually pay varies wildly based on who they hire and how.
The gap between “affordable” and “too cheap to trust” has never been more important to understand. We’ll walk you through pricing benchmarks, where to find reliable help, and how to vet candidates properly.
Key Takeaways
- What bookkeepers actually do (and don’t do) for your business.
- Real pricing benchmarks so you know what “affordable” really means
- Where to find budget-friendly bookkeepers you can trust
- Red flags to watch for and how to vet candidates properly
- When part-time or outsourced bookkeeping makes more sense than full-time
What Does a Bookkeeper Actually Do for Your Small Business?
A bookkeeper records your daily financial transactions, reconciles bank accounts, manages accounts payable and receivable, handles payroll, and prepares financial reports, keeping your books accurate so you can make informed decisions and stay tax-ready.
A bookkeeper isn’t the same as an accountant. Understanding this distinction saves you from overpaying for tasks that don’t require a CPA.
Here’s what bookkeepers handle day-to-day:
- Recording income and expenses
- Reconciling bank and credit card statements
- Managing invoices (accounts receivable)
- Tracking bills and payments (accounts payable)
- Processing payroll
- Preparing monthly financial reports like Profit and Loss (P&L) statements and Balance Sheets
- Organizing records for tax time
An accountant, by contrast, analyzes that data, files taxes, and provides strategic financial advice. You typically need a bookkeeper first—they create the clean records your accountant uses.
Why does this matter? Accurate books help you understand cash flow, qualify for loans, and avoid IRS penalties. Messy records lead to missed deductions, surprise tax bills, and poor business decisions.
How Much Does It Cost to Hire a Bookkeeper?
Small businesses typically pay $250–$900/month for outsourced bookkeeping, $20–$50/hour for freelancers, or $40,000–$60,000/year for full-time in-house staff. Your actual cost depends on transaction volume, complexity, and service model.
1. Bookkeeper Hourly Rate by Experience
Entry-level freelancers on platforms like Upwork charge $20–$30/hour. Experienced bookkeepers with certifications (like QuickBooks ProAdvisor) typically charge $35–$50/hour. Specialized bookkeepers—those familiar with e-commerce, multi-state sales tax, or inventory—often command $50–$75/hour.
2. Bookkeeping Pricing Packages (Monthly Retainers)
Virtual bookkeeping services usually offer flat monthly rates based on transaction volume:
| Hiring Model | Typical Cost | Best For |
|---|---|---|
| Freelance (Upwork/Fiverr) | $20–$50/hour | Simple books, low volume |
| Virtual bookkeeping service | $250–$900/month | Growing SMBs, ongoing support |
| Part-time in-house | $20–$30/hour | Local presence needed |
| Full-time in-house | $40K–$60K/year + benefits | High volume, complex needs |
3. Hidden Costs to Watch
Don’t forget software subscriptions (QuickBooks Online runs $30–$200/month), cleanup fees if your books are behind ($500–$2,000+), and potential error costs from inexperienced help.
According to the Bureau of Labor Statistics, the median annual wage for bookkeeping clerks was $47,440 in 2023 – but outsourcing often costs less than hiring full-time when you factor in benefits and overhead.
Where Can You Find an Affordable Bookkeeper?
You can find affordable bookkeepers on freelance marketplaces (Upwork, Fiverr), through virtual bookkeeping services, via local accounting firms, or by searching “budget bookkeeper near me.” Each option has different trade-offs for cost, quality, and accountability.
1. Freelance Marketplaces (Upwork, Fiverr)
Pros: Lowest cost, flexible arrangements, large talent pool
Cons: You handle all vetting, inconsistent quality, and no backup if they disappear
Freelance bookkeeper cost on these platforms ranges from $15–$50/hour. Great for simple books or one-time cleanup projects. Risky for ongoing, complex needs.
2. Virtual Bookkeeping Services
Pros: Dedicated teams, accountability, expertise in specific industries
Cons: Less customization, monthly minimums
Services like Bench, Pilot, or specialized firms offer virtual bookkeeper options starting around $200–$400/month. You get a team (not just one person), which means coverage if someone’s sick or leaves.
3. Local Bookkeepers ("Budget Bookkeeper Near Me")
Pros: Face-to-face meetings, local tax knowledge, relationship building
Cons: Higher hourly rates, limited availability
Search “bookkeeper near me” on Google or ask your CPA for referrals. Expect to pay more than virtual options, but some business owners prefer the personal connection.
4. Accounting Firms with Bookkeeping Services
Pros: Bundled services, seamless tax prep handoff
Cons: Often more expensive, may not prioritize small clients
Some CPA firms offer catch-up bookkeeping as part of a package. Worth exploring if you already have an accountant you trust.
How to Hire a Cheap Bookkeeper: What to Look For and Step-by-Step Process
Look for relevant experience, software proficiency (QuickBooks, Xero), clear communication, verifiable references, and transparent pricing.
Then follow a structured process: define needs, set a budget, vet candidates, run a trial, and establish communication expectations.
What to Look For (Bookkeeper Qualifications That Matter)
Must-haves:
- Proficiency in your accounting software (QuickBooks Online, Xero, or Wave)
- Experience with businesses similar to yours (size, industry, complexity)
- Clear communication and responsiveness
- Transparent pricing with no hidden fees
- Verifiable references or reviews
Nice-to-haves:
- Certifications like Certified Bookkeeper (CB) from the American Institute of Professional Bookkeepers or QuickBooks ProAdvisor
- Experience with your specific platforms (Shopify, Amazon, Stripe)
Red Flags to Avoid
- No references, portfolio, or reviews
- Vague or evasive pricing
- Unfamiliarity with your software
- Promises that sound too good (“I’ll do everything for $100/month!”)
- Poor communication during the hiring process
Step-by-Step Hiring Process
Step 1: Define Your Bookkeeping Needs List specific tasks: reconciliation, payroll, invoicing, reporting frequency. Estimate your monthly transaction volume.
Step 2: Set Your Budget Based on the pricing benchmarks above, decide if hourly or monthly makes more sense.
Step 3: Choose Your Hiring Model Freelance, virtual service, or local—based on your priorities.
Step 4: Source and Vet Candidates Post on relevant platforms or contact services. Request references. Ask about their process and turnaround times.
Step 5: Start with a Trial Period Don’t commit long-term immediately. A 30–60 day trial reveals whether they deliver.
Step 6: Establish Communication Cadence Set expectations: weekly check-ins? Monthly reports? What’s the response time for questions?
Full-Time vs. Part-Time Bookkeeper: Which Should You Hire?
Most small businesses with under $1M revenue or fewer than 500 monthly transactions benefit from a part-time or outsourced bookkeeper. Full-time makes sense only when complexity or volume demands 30+ hours weekly of bookkeeping work.
| Decision Criteria | ||
|---|---|---|
| Factor | Part-Time/Outsourced | Full-Time In-House |
| Monthly transactions | Under 500 | 500+ |
| Annual revenue | Under $1M | $1M+ |
| Payroll complexity | Simple (under 10 employees) | Multi-state, 20+ employees |
| Need for on-site presence | No | Yes |
| Budget | Limited | Can afford $50K+ salary + benefits |
The Math
A full-time bookkeeper costs $40,000–$60,000/year in salary alone—plus benefits, payroll taxes, office space, and management time. That’s $4,000–$6,000/month all-in.
A part-time freelancer at $35/hour for 10 hours/month costs $350. A virtual bookkeeping service runs $300–$600/month.
For most small businesses, outsourcing delivers professional results at a fraction of the cost.
The Hybrid Approach
Many businesses use a part-time bookkeeper year-round and bring in a CPA just for tax season. This covers daily needs without overspending on expertise you only need occasionally.
Can You Trust a Cheap Bookkeeper? Risks and How to Avoid Them
Yes, but only with proper vetting. The biggest risks of hiring solely on price are errors that trigger IRS penalties, messy books requiring expensive cleanup, and inconsistent service. Protect yourself by verifying credentials, starting small, and monitoring work quality.
Real Risks of "Too Cheap" Bookkeeping
- Error costs: According to the IRS, failure-to-file penalties can reach 25% of unpaid taxes. Incorrect filings trigger additional penalties and interest.
- Cleanup costs: Fixing a year of messy books typically costs $500–$2,000+. Some businesses spend more on cleanup than they “saved” by hiring cheap help.
- Opportunity cost: Bad data leads to bad decisions. If you don’t know your real cash position, you can’t plan effectively.
Why Some Bookkeepers Are Cheaper
- Offshore providers: Lower labor costs, but potential communication and timezone challenges
- Inexperienced bookkeepers: Learning on your dime
- Part-time side hustlers: Limited availability and accountability
None of these are automatically bad—but they require extra due diligence.
How to Mitigate Risk
- Start with a trial project before committing long-term
- Review reconciliations monthly—don’t just trust that it’s done
- Set clear deliverables and deadlines in writing
- Ask for references and actually call them
- Trust your gut—if communication is poor early on, it won’t improve
When to Pay More
If you have complex inventory, multi-state sales tax, or significant payroll, don’t cut corners. The cost of errors in these areas far exceeds what you’d save.
Affordable Bookkeeping Options for Startups and E-commerce Businesses
Startups and e-commerce businesses can find cheap bookkeeping services starting at $150–$400/month through virtual providers specializing in their platforms—look for expertise in Shopify, Amazon Seller Central, Stripe, and multi-channel reconciliation.
Why Startups and E-commerce Have Unique Needs
Platform integrations create confusion: Shopify, Amazon, Stripe, and PayPal each report transactions differently. Amazon, for example, deposits funds after deducting fees, refunds, and reserves—so the amount hitting your bank doesn’t match actual sales. A generalist bookkeeper will record this incorrectly.
Sales tax is a minefield: Multi-state nexus rules mean you might owe taxes in states you’ve never visited. Each state has different rates, deadlines, and product taxability rules.
Inventory tracking affects profitability: Cost of Goods Sold (COGS) calculations require accurate inventory records. Get this wrong, and your profit margins are fiction.
What to Look For in an E-commerce Bookkeeper?
Ask these questions before hiring:
- “How many Shopify/Amazon clients do you currently serve?”
- “What tools do you use to sync platforms with accounting software?” (Look for A2X, Synder, or Link My Books)
- “How do you handle multi-state sales tax tracking?”
Why Virtual Bookkeepers Excel at E-commerce
Remote bookkeepers often specialize in e-commerce because they serve clients nationally. That specialization means they’ve solved your exact problems before—faster onboarding, fewer errors, better advice.
Red flag: If a bookkeeper says “I can figure out Shopify as we go,” walk away. Platform expertise matters—learning curves cost you money.
The bottom line
Hiring a “cheap” bookkeeper only works when you choose someone who’s affordable and competent. The right hire gives you clean books, accurate reports, smooth tax seasons, and complete financial clarity.
The wrong hire creates chaos that later requires expensive cleanup. The key is proper vetting, clear expectations, and choosing someone who understands your business model—not just someone offering the lowest price.
That’s exactly what Ledger Labs helps small businesses do every day. From outsourced bookkeeping to full monthly financial management, we deliver accuracy without the inflated cost.
If you want reliable bookkeeping at a fair rate, book a call with Ledger Labs and start clean.
