How Much Does a Bookkeeper Cost? A Complete Pricing Guide

Introduction

Bookkeeping is essential for keeping a business financially healthy, but many business owners struggle with deciding whether to hire an in-house bookkeeper, outsource to a virtual bookkeeping service, or manage the books themselves. Understanding the cost differences between these options is key to making the right financial decision.

The price of bookkeeping services varies based on factors such as location, experience, and the scope of work required. While hiring an in-house bookkeeper provides hands-on financial management, it comes with higher fixed costs. On the other hand, virtual bookkeeping services offer a more flexible and cost-effective alternative that adapts to a business’s needs.

In this guide, we’ll break down the real cost of bookkeeping, comparing in-house, virtual, and DIY approaches. By the end, you’ll have a clearer understanding of which bookkeeping solution is the best fit for your business.

Average Salary of an In-House Bookkeeper (Updated with 2025 Data)

Hiring an in-house bookkeeper provides businesses with a dedicated financial professional, but it also comes with significant costs beyond just salary. Understanding the total expense of employing a bookkeeper is essential for determining whether this option makes financial sense for a business.

How Much Does an In-House Bookkeeper Earn?

The average hourly wage for a bookkeeper in the U.S. is $22.63, translating to an annual salary of $46,144 based on a 40-hour workweek.

Depending on experience, location, and industry, salaries typically range from $16.16 to $31.69 per hour.

Additional Costs Beyond Salary

Hiring a full-time bookkeeper includes more than just wages. Businesses must also account for:

• Employee Benefits – Health insurance, paid time off, and retirement contributions, which can add 20–30% more to total labor costs.
• Office Space & Equipment – A workstation, bookkeeping software, and office supplies.
• Training & Professional Development – Ongoing education to stay compliant with tax laws and accounting best practices.

When Does Hiring In-House Make Sense?

An in-house bookkeeper is best suited for businesses that:

• Have a high volume of financial transactions requiring constant oversight.
• Operate in a complex industry that demands specialized bookkeeping knowledge.
• Prefer hands-on financial management and direct communication with their bookkeeping staff.

For many small businesses, however, the cost of hiring a full-time bookkeeper may not be justified, making virtual bookkeeping a more cost-effective alternative. The next section will break down how virtual bookkeeping services compare in pricing and overall value.

Virtual Bookkeeping Costs: A More Affordable Alternative

Virtual bookkeeping has become a popular alternative for small and medium-sized businesses looking to save money while still maintaining accurate financial records. Instead of hiring an in-house employee, businesses work with remote bookkeeping professionals who handle financial tasks using cloud-based accounting software.

How Much Does Virtual Bookkeeping Cost?

Virtual bookkeeping services typically offer flexible pricing structures based on the level of support required. Common pricing models include:

• Hourly rates – Some virtual bookkeepers charge by the hour, with rates typically ranging from $25 to $75 per hour, depending on expertise and services provided.
• Flat-rate monthly packages – Many bookkeeping firms offer tiered monthly plans that range from $200 to $2,500 per month, depending on the complexity of the business’s financial needs.
• Project-based pricing – Some services charge a one-time fee for specific bookkeeping tasks, such as catch-up bookkeeping, tax preparation, or financial reporting.

Key Cost Savings of Virtual Bookkeeping

Compared to hiring an in-house bookkeeper, virtual bookkeeping eliminates several overhead expenses:

• No full-time salary or employee benefits – Businesses only pay for the services they need, avoiding the cost of benefits, payroll taxes, and paid leave.
• No office space or equipment costs – Virtual bookkeepers work remotely, reducing the need for additional office infrastructure.
• No ongoing training expenses – Virtual bookkeeping firms stay up to date with tax laws and accounting practices, so businesses don’t need to invest in training.

By outsourcing bookkeeping, businesses gain access to expert financial support at a fraction of the cost of hiring in-house. The next section will explore the hidden costs of DIY bookkeeping and when it’s worth hiring a professional.

DIY Bookkeeping vs. Hiring a Professional: The Hidden Costs

Many small business owners attempt to manage their own bookkeeping to save money. While this approach may seem cost-effective at first, it often leads to hidden expenses, lost time, and costly financial mistakes.

The Hidden Costs of DIY Bookkeeping

• Time Investment – Bookkeeping requires consistent attention. Business owners who handle it themselves may spend 10 to 20 hours per month managing financial records instead of focusing on growth.
• Risk of Errors – Misclassified transactions, incorrect tax filings, and missed deadlines can result in penalties or audits.
• Missed Tax Deductions – Without proper bookkeeping knowledge, businesses may fail to track deductible expenses, leading to higher tax liabilities.
• Software Costs – Many DIY bookkeepers rely on accounting software like QuickBooks or Xero, which can cost $30 to $200 per month, depending on features.

When Does DIY Bookkeeping Make Sense?

Handling bookkeeping internally can work for very small businesses with minimal transactions, provided they:

• Have basic bookkeeping knowledge or are willing to learn.
• Use automated accounting software to streamline financial tracking.
• Dedicate time to keeping records organized and reconciled.

When It’s Time to Hire a Professional

As businesses grow, the complexity of financial management increases. Hiring a professional bookkeeper becomes necessary when:

• The business has multiple revenue streams, employees, or complex financial transactions.
• Owners spend too much time on bookkeeping at the expense of business operations.
• Financial errors have led to missed tax deadlines, cash flow issues, or compliance risks.

For many businesses, outsourcing bookkeeping ensures accuracy, efficiency, and compliance, all while freeing up valuable time. The next section will highlight a real-world example of how EzyBookkeeper helped a business cut costs and improve financial management.

Case Study: How EzyBookkeeper Helped a Business Cut Costs

One of the best ways to understand the financial benefits of outsourcing bookkeeping is through real-world examples. Blue Collars Plumbing, a 24-hour plumbing, AC, and heating service in Charleston, North Carolina, experienced firsthand how switching to EzyBookkeeper helped them reduce costs and improve financial management.

The Challenge: Costly and Inefficient Accounts Receivable Management

Before partnering with EzyBookkeeper, Blue Collars Plumbing struggled with accounts receivable management. Despite having a solid business foundation, they faced challenges in:

• Collecting payments on time without harming customer relationships.
• Tracking outstanding invoices efficiently.
• Reducing financial bottlenecks caused by late payments.

Hiring a full-time, in-house bookkeeper to manage accounts receivable would have cost them $46,144 per year on average, plus additional benefits and training expenses. Instead, they sought a more cost-effective solution.

The Solution: Outsourcing Bookkeeping to EzyBookkeeper

Blue Collars Plumbing decided to outsource their bookkeeping to EzyBookkeeper, gaining access to:

• Automated invoicing and structured follow-ups to improve collection efficiency.
• A dedicated bookkeeping team without the cost of hiring full-time staff.
• Cloud-based financial tracking that provided real-time insights into cash flow.

The Results: 30% Reduction in Accounts Receivable

Within a short period, Blue Collars Plumbing saw a 30% reduction in outstanding accounts receivable. By eliminating inefficiencies and improving cash flow, the business was able to:

• Save money by avoiding the overhead costs of hiring an in-house bookkeeper.
• Reduce financial stress with an organized, streamlined invoicing system.
• Focus on growing their business instead of chasing overdue payments.

This case study demonstrates how businesses can save thousands of dollars annually by outsourcing bookkeeping instead of hiring in-house staff. The next section will summarize key takeaways and provide guidance on choosing the right bookkeeping solution.

Choosing the Right Bookkeeping Solution for Your Business

Bookkeeping is a critical function for any business, but the cost of managing it can vary significantly depending on whether you hire an in-house bookkeeper, outsource to a virtual bookkeeping service, or attempt to handle it yourself.

To recap:

Hiring an in-house bookkeeper costs around $46,144 per year, plus benefits, office expenses, and training. This option is best for businesses with complex financial needs that require hands-on, full-time bookkeeping.

Virtual bookkeeping services offer a more affordable and scalable solution, with pricing typically ranging from $200 to $2,500 per month, depending on business needs. This option eliminates overhead costs and provides access to expert bookkeeping professionals.

DIY bookkeeping may seem cost-effective but comes with hidden expenses, including software costs, missed tax deductions, and time lost on financial management instead of business growth.

Save Money and Streamline Your Bookkeeping with EzyBookkeeper

For most small businesses, outsourcing bookkeeping provides the best balance of affordability, expertise, and efficiency. As seen in the case of Blue Collars Plumbing, businesses that switch to EzyBookkeeper can reduce costs and improve financial management without the burden of hiring full-time staff.

If you’re ready to simplify your bookkeeping and cut unnecessary expenses, contact EzyBookkeeper now and experience the benefits firsthand.