One of the biggest questions small business owners face when considering bookkeeping or accounting services is cost. With options ranging from hourly rates to flat-rate monthly fees, pricing can be confusing. At Balance Point, we believe that pricing should be clear and predictable, so you know exactly what you’re paying for—and why it’s worth it. Here’s a guide to understanding the factors that influence the cost of bookkeeping and accounting services, and why a flat-rate model may be ideal for small businesses.
Average Cost of Bookkeeping Services
For small businesses, bookkeeping costs vary based on service needs, but they generally range between $300 and $1,000 per month. This can depend on factors like transaction volume, complexity of reporting, and the number of accounts. At Balance Point, our starting rate of $400 per month covers very basic bookkeeping needs, ideal for businesses with minimal transactions and straightforward financials. However, the average fee for most of our clients is closer to $600 per month, reflecting the added support required for factors like higher transaction volume, complex reporting, and multiple accounts.
2. Flat-Rate vs. Hourly Pricing
When it comes to pricing, many accounting firms still use hourly billing, which can lead to unpredictable costs—especially during busy seasons like tax time. Business owners often feel “nickel and dimed” when charged for every call or quick question. At Balance Point, we offer a flat-rate monthly fee so you always know what to expect.
Flat-rate pricing simplifies budgeting and provides peace of mind, allowing you to reach out whenever you need assistance without worrying about surprise bills. Our minimum monthly fee of $400 covers standard bookkeeping tasks, with price adjustments for additional needs like complex reporting, high transaction volumes, or multi-account reconciliations. This approach ensures that costs remain clear and predictable, letting you focus on your business.
For those considering hourly billing, typical rates range from $50 to $150 per hour, depending on location, experience, and the complexity of tasks. However, hourly billing can quickly add up if your business requires frequent consultations or more complex support. Our flat-rate model provides consistent, tailored support at a predictable cost, suited to the ongoing needs of your business.
3. What’s Included in Bookkeeping Fees?
Business owners want clarity on what’s covered in their monthly fees. Here’s what you get with our flat-rate fee at Balance Point:
Minimum Package:
Monthly reconciliations for bank, credit, and loan accounts
Monthly financial statements, including profit and loss and balance sheet
Year-end 1099 filings
Chart of accounts maintenance with best practice recommendations
Monthly financial highlights from our team
Updates on changes in laws and regulations affecting your business
Accounting software subscription (we use QuickBooks Online)
24-hour response time for client emails and phone calls
Optional Add-Ons (Additional Costs Apply):
Payroll processing, priced by employee count and payroll frequency
Enhanced reporting such as forecasting, cash flow analysis, and performance metrics
Regular in-person meetings (monthly or quarterly)
Bill pay services
Tax preparation
Tax planning
One-Time Onboarding Fees:
Bookkeeping cleanup for past errors
Transitioning to new accounting software
Setting up payroll services or migrating from another provider
4. How to Estimate Bookkeeping Costs
Estimating your bookkeeping costs depends on several factors:
Complexity of books: Cash accounting is simpler, while accrual accounting often requires more detailed tracking. Tracking transactions by multiple locations or business classes/segments is more complicated and costly as well.
Transaction volume: Higher transaction volumes require additional time and resources for accuracy.
Number of accounts and loans: More accounts mean more reconciliations. Our minimum pricing is based on a single business checking account and a single business credit card with 40 or fewer transactions per month.
Type of entity: Different structures have unique needs, which can affect pricing. For example, corporations have different tax and compliance requirements. Our minimum fee of $400 covers essential needs, but entities with multiple owners, complex structures, or additional compliance obligations may require more support. We tailor pricing based on entity type to ensure you receive the necessary level of service.
Additional reporting: Businesses with complex or frequent reporting needs may see an increase in fees. We provide the following types of reporting at an additional cost: cash flow analysis, forecasting, monitoring performance metrics, financial statements for several locations, or segments of your business.
5. How to Reduce Your Monthly Bookkeeping and Accounting Costs
While high-quality bookkeeping services are invaluable, there are ways to keep monthly costs manageable by adopting efficient practices. Here are some tips to help:
Respond Promptly to Questions from Your Bookkeeper
Timely responses allow issues to be identified and resolved early, ensuring more accurate information throughout the year. Responding while details are fresh in your mind also helps your bookkeeper maintain efficiency, saving you time and money on corrections.
Consult Your Bookkeeper Before Setting Up New Accounts or Sales Items
Avoid setting up new accounts or sales items in your accounting software without consulting your bookkeeping team. Mistakes during setup can create a snowball effect, leading to costly corrections later on.
Limit User Access in Your Accounting System
Restrict access to essential users only or set permissions according to need. This reduces the risk of unauthorized changes or accidental errors that could result in costly cleanups.
Keep Paperwork on Hand for Assets, Loans, and New Accounts
Organized records for asset purchases, new loans, and new accounts help your bookkeeper maintain accurate records. Share these with your bookkeeper as soon as possible to prevent delays and confusion.
Avoid Commingling Personal and Business Transactions
Mixing personal transactions with business accounts increases transaction volume and creates classification issues, adding unnecessary costs. Keeping business and personal expenses separate reduces confusion and workload.
Minimize Use of Third-Party Payment Apps
Apps like Venmo or PayPal can complicate tracking, as they often lack information on payees and payment purposes. These payments require additional classification work, increasing bookkeeping costs. Using a business bank account or credit card provides clearer records and simplifies the process.
By following these practices, you can help streamline your bookkeeping, reduce transaction volume, and keep monthly fees manageable, all while ensuring accurate financial records.
6. Are Bookkeeping Services Worth It?
The cost of accounting services may seem high, but consider the value: a skilled accountant provides accurate records, proactive guidance, and insights that help you make better financial decisions. Reliable bookkeeping also ensures taxes are filed correctly, potentially saving you from costly corrections or penalties. Small businesses with limited budgets often look for affordable services that still deliver quality support. DIY or online options may seem budget-friendly, but they can be time-consuming and lack the expertise small businesses need. Our pricing structure provides high-quality service at a predictable cost, helping small businesses grow without sacrificing support.
With transparent pricing and a flat-rate model, Balance Point helps small business owners take control of their finances without worrying about surprise bills. If you’re ready to explore how our services can benefit your business, contact us today to learn more!
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