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How Much does Outsourcing Bookkeeping Cost for Small Businesses?

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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