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How Much does Outsourcing Bookkeeping Cost for Small Businesses?

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The cost of outsourcing bookkeeping for small businesses typically depends on the complexity of the business and the pricing structure chosen. There are three common ways these services are billed:

  1. Hourly Rates: These typically range from $20 to $50 per hour, which is often the most cost-effective option for businesses with occasional or minimal needs.
  1. Monthly Packages: For more comprehensive and ongoing support, monthly fees generally fall between $500 and $2,000. These packages often cover routine tasks like transaction management and reporting.
  1. Tiered Plans based on Business Type: Specific business categories may see different averages. For example, trades businesses often pay between $500 and $1,200 monthly for services including invoicing, job costing, and tax preparation setup. Freelancers may find basic plans starting between $300 and $700, while larger firms requiring strategic insights may pay $1,000 or more.

Compared to hiring an in-house bookkeeper, which can cost between $45,000 and $60,000 annually plus benefits, outsourcing provides a variable cost structure that can scale with the business’s needs.

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