The Cost of Accounting & Bookkeeping for Small Businesses - What to Know

Setting up a business and gearing it for success can be quite exhausting, difficult, and, most of all, costly. Several factors come into play, such as marketing, production, and labour. Among these, you would probably be especially concerned about accounting and bookkeeping.

How much do accounting and bookkeeping cost?

The question of how much accountants and bookkeepers charge is common among first-time small business owners that are mapping their costs out. Admittedly, the terms “bookkeeping” and “accounting” may have anyone worrying about the price that they’re going to pay, but the answer to the question of “how much” is that it depends. 

The difference between bookkeeping and accounting

Before we determine the exact costs of both bookkeeping and accounting for your small business’s needs, it is vital first to understand the difference between the two financial functions. AccountingAccounting is the set of financial processes that use the data generated by proper bookkeeping in order to produce valuable reports and implement the correct strategies moving forward. In addition, accounting is also concerned with the responsibility of taking highly detailed and complex business information and reporting it in a way that makes it easier for business owners to understand. BookkeepingBookkeeping, on the other hand, essentially entails the task of recording each and every financial transaction that a business conducts. Aside from that, bookkeeping also acts as the moving part in the entire financial system of a business that feeds the accounting aspect with the crucial data it needs. 

The true cost of bookkeeping and accounting for small businesses

Assuming that your small business doesn’t have the necessary capital to hire an in-house accountant and bookkeeper, the most accurate way to calculate your costs is through the use of hourly numbers. Most bookkeepers and accountants charge by the hour, which makes it a whole lot easier to generate a more accurate forecast of how much you’ll have to shell out in order to keep your numbers right. Based on the current market rates, you can expect your accounting and bookkeeping costs to fall within the following ranges:Bookkeeping hourly costsBookkeepers, on average, charge between $25 and $80 an hour depending on their experience, years of service, and certifications. Given the basic needs of a small business and its relatively minimal set of tasks, you’ll need to spend anywhere from $300 to $600 per month on a bookkeeper. Accounting hourly costsOn the other hand, the average hourly rates for accounting work completed by a certified public accountant can range between $150 to $450 an hour. Aside from that, you can expect to shell out an additional amount for more expenses, such as: 

With the right set of figures in mind, you’ll be able to gauge just how much accounting and bookkeeping costs might set you back as a small business. As intimidating as the total amount may seem at first, but it is essential to understand that getting the right bookkeeper and accountant is an investment that will serve you well in the long run.Contact us today for your free assessment to find out how Blueprint Accounting can support your business.