How much does a bookkeeper cost? Understanding bookkeeper pay rates in 2026

There are many aspects of being a business owner that drive success.

Sales, production, and employee retention are all extremely important. And while it may not be the most glamorous topic, bookkeeping also plays a part.

But who wants the task of sifting through receipts and organizing statements when there’s a whole slew of business operations to attend to? It may be time for you to make the executive decision of hiring a bookkeeper to take the reins.

And now that you know the answer to the question “How much does a bookkeeper cost?” you may wonder what exactly a bookkeeper does and the different types of bookkeeping services you can pay for.

To learn more about the cost of bookkeeping, follow this small business guide.

What does a bookkeeper do?

A bookkeeper is responsible for recording transactions and keeping track of a business’s finances. Some common responsibilities of a bookkeeper include:

• Posting journal entries
• Assisting with payroll
• Reconciling bank accounts
• Reviewing the general ledger
• Paying client’s bills

On top of this, it is also a bookkeeper’s job to keep everything organized. That way, when it is time to file your small business taxes, you can easily access all the data you need.

Additionally, a bookkeeper may work with an accountant, who is responsible for more advanced tasks such as assessing the health of a business or generating financial statements.

Types of bookkeeping: Basic vs. full-service accounting

There are two main types of bookkeeping to be aware of when deciding what type of bookkeeper to hire. These include basic and full-service bookkeeping, where the decision largely depends on your business goals and needs.

Basic bookkeeping

Basic bookkeeping is exactly what you would expect it to be: the basics. This includes things like payroll, employment taxes, and tracking expenses.

• Time and service: While the length of time basic bookkeeping requires can vary based on the size and complexity of your business, it generally requires less time than full-service bookkeeping. Bookkeepers are often only required to maintain records and manage financial transactions.
• Average bookkeeper cost differences: Due to the additional education and experience required to be a full-service accountant, the average cost of a bookkeeper is lower than a full-service accountant.

Full-service bookkeeping (and accounting)

Full-service bookkeeping is everything you’d find in basic bookkeeping with additional accounting services and financial statement analysis.

• Time and service:Accounting requires a much higher level of time and service simply because accountants are responsible for managing the books as well as interpreting and analyzing the financial statements to report a holistic view of the company’s financial health.
• Average cost differences: Due to extensive education and certification requirements, the average salary for an accountant will exceed that of a bookkeeper.

Whether you opt for basic bookkeeping or full-service bookkeepingand accounting, either option can help you be better prepared come tax season.

Monthly cost of bookkeepers for small businesses

How much a bookkeeper will cost your business every month depends on multiple factors, including the type of service you choose, location, experience, and certifications. Whether you opt for an in-house bookkeeper, a freelance professional, or an online subscription service, each option comes with different costs and benefits. Let’s take a look at each option so you can decide which one might be right for your operations.

In-house bookkeepers

According to the most recent data from the U.S. Bureau of Labor Statistics, the average pay of an in-house bookkeeper is $47,440 per year or $3,950 per month. Of course, this figure can fluctuate depending on the aforementioned factors — e.g., location, experience, certifications, etc.

An in-house bookkeeper can be beneficial if you need consistent, hands-on support to manage your finances. They only work for you, so over time, they’ll gain a deeper understanding of the ins and outs of your financial operations. Plus, you can get real-time updates and quick responses if any issues arise.

The biggest downside of hiring an in-house bookkeeper is that they usually cost more than a freelancer or online service, especially when you provide them with employee benefits, equipment, and office space.

Freelance bookkeepers

TheU.S. Bureau of Labor Statistics states that the average hourly pay for bookkeepers is $22.81 per hour. When it comes to freelance bookkeepers, how much it will cost you in a month depends on the number of hours you need their services, as well as their experience, location, and the complexity of the work.

One of the biggest benefits of freelance bookkeepers is that they offer flexibility. You can hire them as needed or for specific tasks, which is helpful if you don’t need full-time bookkeeping. This allows you to keep costs down and only pay for the services you use.

However, there are trade-offs. Freelance bookkeepers often manage multiple clients, so they might not be as readily available as an in-house option. You also lose some direct oversight, which can be challenging if you need immediate support.

Online bookkeeping subscription

The monthly fee for an online bookkeeping subscription can vary depending on the service you use.

Online bookkeeping services offer the convenience of 24/7 access to your financial data without the overhead costs of hiring someone full-time. These services are ideal if your business needs reliable help but wants to keep things simple and affordable.

Costs for bookkeepers vs. accountants vs. CPAs

Accountants maintain a wide range of skill sets, including managing spending and budgets, taxes, and analysis of financial statements. To be exceptional at these tasks, accountants must complete years of training and earn special certifications, which their salaries reflect. Depending on the type of accountant, years of experience, and certifications, you could be paying a pretty penny.

For example, a Certified Public Accountant (CPA) is paid more than a traditional accountant due to having to meet higher education and licensing requirements depending on their state.

On the other hand, bookkeepers are the more affordable option. They require the least amount of education and focus on recording transactions, whereas an accountant or CPA spends their time analyzing financial data and generating financial statements.

While these exact figures can change over time, the cost comparisons of covering your bookkeeping and accounting needs can vary greatly depending on the type of individual you hire.

Signs you’re ready to hire a bookkeeper

As with any new hire, you’ll need a careful assessment to warrant bringing in additional hands to help run your small business. Below are some signs to help point you toward the right choice:

• Significant growth: If your business is booming, it also means your records are growing and likely getting left in the dust when it comes to updates. Hiring a bookkeeper could help keep you on track during this business growth phase.
• Mistakes in the books: Finding mistakes in the books are common, but if they’re not caught early, they can easily sneak up on you and cause major malfunctions during reconciliation. Having someone dedicated to catching and correcting accounting errors could make all the difference.
• Time constraints: Time is arguably the most precious element we have, and as a small business owner, it is a fleeting resource. Calling on a bookkeeper to take on the task of record management could give you back countless hours that are desperately needed to run your business effectively.

If any of these warning signs resonate with you, it may be time to hire a bookkeeper. But before you do, let’s look at some questions you should ask yourself before making the decision.

What factors affect bookkeeping costs?

You have several options for handling your bookkeeping, but some important factors can influence the cost. Let’s look at a few key points to help guide your decision.

1. Business size

There is no magic number to know when you’re ready to take on a bookkeeper for additional support. Instead, it’s more of a holistic view of time, resources, and the ability to become more efficient that will make or break your decision.

If you have a larger operation, a bookkeeper will have more to handle, which may mean higher costs. In some cases, you might even need a second bookkeeper. If your business is smaller, you may not need as much help, so you might be able to keep your costs lower.

2. Experience, certifications, and additional services

Bookkeepers offer a wide range of services, so what you need from them will affect your overall costs. If you only need basic services like client billing and documentation, a good solution may be accounting software that can assist you if you still want to play a more hands-on role.

However, if your needs are more complex — e.g., managing payroll — you’ll likely need to hire a more experienced bookkeeper. Professionals with certifications like Certified Bookkeepers (CBs) usually charge more, but the extra cost could be worth it for your business’s financial health.

3. Type of service

Deciding between hiring a full-time in-house bookkeeper or contracting out services is another factor that affects costs.

Depending on how much work you have and how long you need services, a contracted worker might be a better option. For example, if you’re in a sector that finds business heavier in the fourth quarter than any other time of the year (we’re talking to you, holiday bloggers), contracting may be more cost-effective than keeping someone in-house year-round.

Bringing someone on as an in-house full-time employee requires extra costs on your end, such as benefits and health insurance, whereas contractors are not entitled to these perks. You may not know how long you’ll need someone, but comparing the monthly bookkeeping cost of a contractor versus an in-house employee is the best way to see this angle side by side.

4. Location

Where you live could cost you more. Bookkeeper salaries vary state by state (see our chart below), and depending on where you live, you could be paying a large difference in one place versus another. A better option would be to use a service like Intuit Experts, where your bookkeeper costs would not be affected by where you live but rather how much your business expenses are per month.

Streamline your accounting and save time

Now that you know the answer to the question “How much does a bookkeeper cost?,” it’s time to decide if hiring a bookkeeper is the best route for your business. You may also consider using online bookkeeping services and accounting software to save time and money, all while meeting your bookkeeping needs.