Bookkeeping is one of those business functions you can’t ignore. Someone has to handle recording transactions, managing accounts payable, generating financial statements, and keeping accurate financial records. The problem is, determining what you should pay for bookkeeping services isn’t always straightforward.
Costs vary depending on whether you hire an in-house bookkeeper, bring in a freelance professional, or choose outsourced bookkeeping services. In this guide, the Lineal CPA team breaks down the true numbers, what influences bookkeeping costs, and how to decide which option fits your business best.
Is Bookkeeping Worth the Cost?
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Bookkeeping is about maintaining your company’s financial health. Without timely, accurate financial records, you’re turning a blind eye to an important aspect of your business.
Here’s why bookkeeping is worth every dollar:
- Ensures timely financial records for decision-making.
- Helps track cash flow and business expenses.
- Simplifies financial reporting and tax season preparation.
- Provides insight into your business’s financial health.
- Helps you maximize tax write-offs and stay compliant.
Cutting corners on bookkeeping might seem like a way to save money today, but it can lead to overhead costs, penalties, and missed opportunities tomorrow. Ultimately, it will cost your business more to cut corners.
Bookkeeping Options and Costs
So, how much does a bookkeeper actually cost? It depends on how you structure it. Let’s break it down:
1. In-House Bookkeeper
An in-house bookkeeper is a full-time employee on your payroll.
Typical costs include:
- Salary: $40,000-$65,000/year (depending on experience and location)
- Employee benefits: Health insurance, retirement contributions, payroll taxes
- Office space and equipment: Computer, software, desk, supplies
Pros:
- Direct oversight and daily availability
- Deep familiarity with your financial operations
- Can help with employee timesheets and other office manager tasks
Cons:
- Higher overhead costs
- Limited flexibility during slow months
- Expensive if your bookkeeping needs are basic
2. Freelance Bookkeepers
Freelance bookkeepers or certified bookkeepers often charge an hourly rate or flat fee.
Costs:
- Average hourly rate: $25-$60/hour
- Flat fee: Often based on monthly transactions
Pros:‍
- Flexible
- Cost-effective for basic bookkeeping
- No long-term commitment
Cons:
- Less predictable availability
- May lack advanced tools for complex financial systems
- Harder to scale as your business grows
3. Outsourced Bookkeeping Services
Outsourced bookkeeping means partnering with a firm or online provider. This can include outsourced bookkeepers specializing in platforms like NetSuite bookkeeping.
Costs:
- Monthly bookkeeping cost: $250-$1,000+, depending on the complexity and volume
- Online bookkeeping subscription: Flat monthly rates starting at $200/month
- Scalable for small businesses and larger organizations
Pros:
- Access to professional bookkeepers and certified public bookkeepers
- Specialized expertise in financial management and accounting software
- Saves money compared to hiring in-house bookkeeping staff
- Ensures timely financial records and accurate financial data
Cons:
- Less direct oversight
- Communication depends on provider responsiveness
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Take Your Bookkeeping to the Next Level
Stop struggling with basic tools. Our experts at Lineal CPA set up and manage NetSuite bookkeeping to simplify your finances.
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NetSuite Bookkeeping Costs
If your business is using or considering NetSuite, bookkeeping takes on a new dimension. Unlike DIY bookkeeping or basic services, NetSuite bookkeeping is designed for businesses with complex financial systems, multiple locations, or higher transaction volumes.
Benefits of NetSuite bookkeeping:
- Automates managing accounts payable and customer invoices.
- Streamlines financial reporting across departments or subsidiaries.
- Supports monthly transactions at scale without manual bottlenecks.
- Offers advanced tools for cash flow management and a business’s financial health.
- Integrates directly with other ERP modules for financial operations beyond bookkeeping tasks.
Costs for NetSuite bookkeeping:
- Typically higher than online bookkeeping services because it involves advanced configuration.
- Pricing varies based on monthly cost, actual cost of services, and level of customization.
- Often more cost-effective in the long term because it reduces the need for multiple systems and existing employees handling manual work.
Factors That Influence Bookkeeping Costs
No matter which option you choose, these factors affect the price:
- Number of monthly transactions: More transactions = higher fees.
- Complexity of financial systems: Multi-entity or international operations require more expertise.
- Reporting needs: Detailed financial statements and analytics cost more than basic bookkeeping.
- Software: Whether you’re using accounting software like QuickBooks or NetSuite.
- Employee involvement: Whether you rely on an existing employee or outsource entirely.
- Tax season prep: The more organized your financial records, the lower your bookkeeping expenses for filing taxes.
Average Bookkeeping Costs by Type
Lineal CPA Can Help You Perfect Your Bookkeeping Services
As a key takeaway, the cost of bookkeeping services depends on whether you’re looking for an in-house bookkeeper, a freelance professional, online bookkeeping services, or advanced solutions like NetSuite bookkeeping. While bookkeeping costs vary, what’s consistent is the need for accurate financial data and reliable financial management.
At Lineal CPA, we provide a full suite of managed accounting and bookkeeping services — from basic bookkeeping tasks and monthly bookkeeping cost support for small businesses, to NetSuite bookkeeping for complex financial systems. Whether you want to reduce overhead costs, save money with outsourced bookkeeping, or gain ERP-level visibility into your company’s financial health, our team has you covered. Schedule a call today and learn how we can be your long-term partner to keep your finances clear, compliant, and ready for growth.
