You’re running a business, not an accounting firm, yet you’re stuck spending hours on bookkeeping instead of growing your revenue.
This guide shows you exactly what online bookkeeping should cost, what’s included at every price point, and how to stop overpaying for services you don’t need.
Did you know that business owners who handle their own books spend an average of 10–20 hours per month on financial tasks, time worth $6,000 to $15,000 annually in lost productivity?
As more providers flood the market with confusing pricing tiers, understanding online bookkeeping charges separates smart business owners from those bleeding money. We’ll break down the real costs, compare your hiring options, and give you a simple formula to help you decide whether outsourcing makes financial sense.
Key Takeaways
- Most small businesses pay between $150 and $500 per month for online bookkeeping. The price depends on the number of transactions, the number of accounts, and the complexity of your industry.
- Flat monthly fees help you know exactly what you’ll pay each month, which is better than hourly billing that can vary unexpectedly.
- Outsourcing bookkeeping can save you 80% to 90% compared to hiring in-house. Freelancers charge $200 to $500 per month, while firms charge $300 to $1,000 monthly. In-house bookkeepers cost between $52,000 and $73,000 annually.
- Doing your own bookkeeping might cost you more than you think. When you factor in your time, missed deductions, and cleanup fees during tax season, it can drain between $10,000 and $30,000 each year.
- Before signing a contract, check which services are included. Standard fees cover categorization, reconciliation, and monthly statements, while payroll, sales tax, and accounts payable/receivable may cost extra.
What is Accounts Payable? (Definition + Why It Matters)
The cost of your online bookkeeping services depends on your transaction volume, the number of accounts, and the support level you need.
Most small businesses spend between $150 and $500 each month. Basic packages start at around $150 a month. Mid-range services cost between $300 and $700 a month. Full-service options with higher-level support range from $1,000 to $2,500 a month.
But here’s a general breakdown:
| Service Level | Monthly Cost | What’s Typically Included |
|---|---|---|
| Basic | $150–$300 | Bank reconciliation, transaction categorization, and basic financial reports |
| Mid-Range | $300–$700 | Everything in Basic, plus accounts payable/receivable and payroll integration |
| Comprehensive | $700–$1,500 | Everything above, plus financial analysis, budgeting, and advisory support |
| Full-Service | $1,500–$2,500+ | Everything above, plus tax prep coordination and multi-entity management |
According to the U.S. Bureau of Labor Statistics, the median annual wage for bookkeeping, accounting, and auditing clerks was $49,210 in May 2024, or about $4,100 per month before you add benefits, software, and overhead
What Factors Affect Your Online Bookkeeping Service Cost?
Your online bookkeeping cost depends on five main factors: monthly transaction volume, number of bank and credit accounts, industry complexity, service scope, and whether you need catch-up work. High-volume ecommerce businesses typically pay more than simple service-based companies.
1. Transaction Volume and Complexity
This is the biggest cost driver. More transactions mean more work.
- Under 100 transactions/month: Basic tier pricing ($150–$250)
- 100–500 transactions/month: Mid-range pricing ($300–$600)
- 500+ transactions/month: Custom pricing ($700+)
- Multi-channel ecommerce (Amazon, Shopify, Stripe): Premium pricing applies
2. Number of Accounts to Reconcile
Each bank account or credit card adds time to monthly reconciliation.
- 1-2 bank accounts: Base pricing
- Each additional account: +$25–$75/month
- Credit card accounts: Often bundled or +$15–$50 each
3. Industry-Specific Requirements
Some industries require specialized knowledge that increases cost:
| Industry | Pricing Impact | Why |
|---|---|---|
| Ecommerce / Amazon | +20–40% | Multi-channel reconciliation, inventory management, and sales tax complexity |
| Construction | +25–50% | Job costing, progress billing, retainage tracking, and compliance requirements |
| Restaurants | +15–30% | Daily deposits, tip reporting, inventory tracking, and POS integrations |
| Professional Services | Base rate | Simpler transaction patterns with minimal inventory or sales tax complexity |
Add-On Services
Watch for these common extras that aren’t always included:
- Payroll processing: +$50–$150/month
- Sales tax filing: +$30–$100/month
- Accounts payable management: +$100–$300/month
Catch-up bookkeeping: One-time fee based on months behind
How Do Different Bookkeeping Pricing Models Work?
Bookkeeping services use four main pricing models: hourly rates ($25–$75/hour), monthly flat fees ($150–$500), per-transaction pricing ($0.50–$2.00), and value-based retainers. Flat monthly fees offer the most predictable budgeting for small businesses.
1. Hourly Bookkeeping Rates
Some bookkeepers charge by the hour, typically $25–$75 depending on experience and location.
- Pros: You pay only for the time you use.
- Cons: Monthly costs can be unpredictable, and the bookkeeper may work quickly.
- Best for: This option suits one-time cleanup projects or seasonal tasks.
2. Monthly Flat Fee Pricing
This is the most common model for ongoing bookkeeping. You pay a set amount each month regardless of how long the work takes.
- Range: Costs between $150–$500/month for small businesses
- Pros: Offers predictable budgeting with no unexpected expenses
- Cons: You might end up overpaying during months with minimal work
- Best for: Ideal for businesses that prefer steady, reliable support each month
3. Cost Per Transaction
Some services charge based on the number of transactions they process.
- Range: Transaction fees vary from $0.50 to $2.00.
- Pros: Fees increase in proportion to transaction volume.
- Cons: Costs can rise sharply during peak times.
- Best for: Seasonal businesses with fluctuating transaction volumes.
4. Value-Based Pricing
A newer model where pricing ties to the value delivered or your business revenue.
- Structure: Typically 0.5–1% of monthly revenue, providing a flexible funding option.
- Pros: Aligns incentives between the investor and business, promoting mutual growth.
- Cons: Costs can increase significantly as the business grows and revenue rises.
- Best for: Ideal for expanding businesses seeking a partner to support strategic growth.
According to NerdWallet’s analysis of online bookkeeping services, flat monthly fees are the most popular model because they eliminate billing surprises.
Freelance vs. Firm: What's the Real Cost Difference?
You have three main choices: freelance bookkeepers ($200–$500/month), bookkeeping firms ($300–$1,000/month), or in-house employees ($4,300–$6,100/month with benefits). For most small businesses, outsourcing to a freelancer or firm saves 80-90% compared to hiring in-house.
| Cost Comparison | |||
|---|---|---|---|
| Factor | Freelancer | Bookkeeping Firm | In-House Employee |
| Monthly cost | $200–$500 | $300–$1,000 | $4,300–$6,100* |
| Annual cost | $2,400–$6,000 | $3,600–$12,000 | $52,000–$73,000 |
| Availability | Variable | Consistent | Full-time |
| Backup coverage | None | Built-in | You manage |
| Software included | Rarely | Often | You provide |
| Quality oversight | Self-managed | Manager review | You supervise |
Which Option Fits Your Business?
Choosing the right option for your business is crucial for maximizing efficiency and driving growth. Evaluate your needs and goals to find the perfect fit.
Choose a freelancer if:
- Budget is your top priority
- Your bookkeeping needs are straightforward
- You’re comfortable managing the relationship directly
Choose a bookkeeping firm if:
- You want reliability and backup coverage
- Your books are more complex (multiple accounts, inventory, payroll)
- You prefer a hands-off experience with quality oversight
Choose in-house if:
- You need 40+ hours/week of dedicated bookkeeping
- Your business requires daily on-site financial support
- You have the budget and management bandwidth
For most small businesses doing under $500K in revenue, outsourcing to a freelancer or firm delivers the best balance of cost and quality.
What's Actually Included in Monthly Bookkeeping Fees?
Standard monthly bookkeeping fees ($150–$500) cover your core financial record-keeping: transaction categorization, bank reconciliation, and monthly financial statements. Anything beyond that, payroll, bill pay, invoicing, and sales tax typically costs extra.
What You Should Expect at Every Price Point?
Basic accounting services include transaction categorization, bank reconciliation, and monthly financial statements. Additional services such as invoicing, payroll, and tax filings are available at an extra cost, allowing you to customize your support.
Always Included (Base Fee)
- Transaction categorization and coding
- Bank and credit card reconciliation
- Monthly profit and loss statement
- Monthly balance sheet
- Basic email support
- Cloud software access (QuickBooks/Xero)
Usually Costs Extra (Add-Ons)
- Accounts payable/bill pay: +$100–$300/month
- Accounts receivable/invoicing: +$75–$200/month
- Payroll processing: +$50–$150/month
- Sales tax filing: +$30–$100/month
- 1099 preparation: +$5–$15 per contractor
- Catch-up bookkeeping: $50–$150 per month of backlog
How Do You Calculate the True Cost of Online Bookkeeping?
Calculate true bookkeeping cost by adding monthly fees, software subscriptions, and add-ons. Then compare against the cost of your time doing it yourself (your hourly rate × hours spent) plus potential error costs. For most small business owners, professional bookkeeping pays for itself.
Step-by-Step Cost Calculation
Let’s say you’re a small business owner considering a mid-range bookkeeping service:
Step 1: Calculate Your Direct Costs
| Item | Example Cost |
|---|---|
| Monthly bookkeeping fee | $400 |
| Software subscription (if separate) | $0 (included) |
| Add-on: Payroll processing | $75 |
| Add-on: Sales tax filing | $50 |
| Monthly Total | $525 |
Step 2: Factor in One-Time Costs
| Item | Example Cost |
|---|---|
| Catch-up bookkeeping (6 months behind) | $900 |
| Year-end cleanup for taxes | $300 |
| One-Time Total | $1,200 |
First-Year Total Cost: $525 × 12 + $1,200 = $7,500 Ongoing Annual Cost: $525 × 12 = $6,300/year
Step 3: Calculate Your DIY Cost
Now, let’s calculate what doing it yourself actually costs:
| Item | Your Numbers |
|---|---|
| Your hourly rate (or what you could bill clients) | $75/hour |
| Hours spent monthly on bookkeeping | 12 hours |
| Monthly DIY Cost (opportunity cost) | $900 |
| Annual DIY Cost | $10,800 |
The Verdict: In this example, outsourcing saves $4,500/year in opportunity cost alone, before counting errors, missed deductions, or stress.
The Hidden Costs of DIY Bookkeeping
But opportunity cost is just the beginning. Here’s what most business owners don’t factor in:
| Hidden Cost | Typical Impact | How It Happens | |||||||||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Your time | $6,000–$15,000/year | 10–20 hours/month at $50–$75/hour | |||||||||||||||||
| Missed tax deductions | $1,000–$5,000/year | Incorrect categorization, forgotten expenses | |||||||||||||||||
| Late payment penalties | $25–$500/incident | Missed due dates, cash flow blind spots | |||||||||||||||||
| IRS audit costs | $2,000–$10,000+ | Errors that trigger review | |||||||||||||||||
| CPA cleanup fees | $500–$2,000/year | ||||||||||||||||||
| Comparing Popular Bookkeeping Services | ||
|---|---|---|
| Provider | Starting Price | Best For |
| QuickBooks Live | $300–$700/month | QuickBooks users wanting integrated support |
| Bench | $299–$499/month | Simple businesses wanting ease of use |
| Pilot | $599+/month | VC-backed startups with growth plans |
| Local CPA Firms | $400–$1,200/month | Businesses wanting local relationships |
Signs You're Overpaying
- Monthly bills vary wildly with no explanation
- You’re paying for services you don’t use
- Software fees are billed separately at a markup
- No financial statements included in the base price
- Hourly billing exceeds 15 hours/month regularly
Conclusion
Online bookkeeping costs between $150 and $2,500 per month, with most small businesses paying around $150 to $500 for solid service. Your final price depends on transaction volume, the number of accounts, industry complexity, and any necessary add-ons. Flat monthly fees are preferable to hourly billing for predictable budgeting, and outsourcing to a freelancer ($200–$500/month) or a firm ($300–$1,000/month) can save you 80–90% compared to hiring in-house staff.
If you spend over 10 hours a month on bookkeeping and value your time at $50/hour or more, doing it yourself may already be more costly than hiring professional services. Add potential missed deductions and late fees, and you could lose $10,000–$30,000 annually.
Get quotes from 3–5 providers, inquire about what’s included, and calculate your break-even point. Choose a bookkeeping service that meets your actual needs rather than simply going for the cheapest or most expensive option. Your bookkeeping should provide clarity, not stress.
FAQs
Q: How much should an accountant charge for bookkeeping?
Accountants charge $30–$90 per hour or $300–$1,000 per month for bookkeeping, but often cost more than bookkeepers. For routine tasks, a bookkeeper at $20–$50 per hour is more cost-effective. Use accountants for complex work like tax planning and financial analysis, where their expertise justifies the higher rates.
Q. How much does QuickBooks Online bookkeeping cost?
QuickBooks Live Bookkeeping costs $300–$700/month based on your expenses, while the Full-Service plan is around $500–$700/month. It includes a dedicated bookkeeper and monthly reports, with an initial setup fee for the initial cleanup. Prices increase for businesses with monthly expenses over $10,000. This service is best for those already using QuickBooks Online.
Q: Is virtual bookkeeping worth it?
Many small businesses spend over 5+ hours a month on bookkeeping. Virtual bookkeeping offers professional accuracy and real-time financial access, freeing you to focus on growth. It’s ideal if you lack clear financial data or dread tax season. Most businesses see a positive ROI within the first year from time savings and fewer errors.
Q: How do cloud bookkeeping charges compare to traditional bookkeeping?
Cloud bookkeeping costs 20–40% less than traditional options, averaging $150–$500 per month compared to $400–$1,000 per month. Savings come from automation and scalability. Cloud services like QuickBooks and Xero offer real-time access and easier CPA collaboration, making them a better value for small businesses despite less personal interaction.
Q: Can I negotiate bookkeeping fees?
Bookkeeping fees are negotiable. Ask for discounts on annual payments, bundled services, or introductory rates. Having clean books and simple needs strengthens your position. Get quotes from 3–5 providers to understand fair rates, as some may offer lower prices for startups or seasonal businesses.
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Gary Jain (Author Bio)
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