How Much Is the Cost of Bookkeeping and Accounting for Your Business?

Are you looking for some financial expertise for your business? Bookkeeping and accounting professionals help countless business owners transform their companies into successful enterprises. If you have just launched your business, you will need to implement a well-designed bookkeeping and accounting plan to ensure long-term growth.

If you are wondering how bookkeeping and accounting service fees are structured, we have put together this handy guide when canvassing for cash flow management assistance. 

Bookkeeping vs. Accounting 

Before you explore the various costs associated with bookkeeping and accounting, you will need to understand the difference between these two services. 

Most companies require bookkeeping services. A bookkeeper performs a variety of important tasks, including recording transactions and paying bills, tracking sales taxes, and creating and issuing invoices. As your business grows, you will need to adjust the scope of your bookkeeping requirements. 

Accounting is the process of recording, organizing, analyzing, and reporting a business’s financial information. Accountants use the financial data provided by bookkeepers to complete several functions, such as preparing and analyzing financial statements, completing income tax returns, tax planning, and business consulting. They can also provide you with knowledge and insight to make important financial decisions. 

Bookkeeping and Accounting Costs

Traditionally, bookkeepers and accountants charge by the hour. They will keep track of their time spent performing services and bill you accordingly. Here are the current hourly rates you can expect to pay:

• Bookkeepers charge between $25/hr and $90/hr

• Accountants charge between $150/hr to $450/hr

Ultimately, you won’t be able to get an accurate estimate of the total costs until you receive the final bill from your service providers. 

Don’t want the surprises that go along with hourly-based billing?  For those who prefer having a fixed price set in advance, many bookkeepers and accountants offer value pricing solutions. Value-based billing will not only provide predictability in payments, but also allow you to communicate with your service provider without being charged extra.  

Bookkeeping and accounting are crucial for any business. Maintaining up-to-date financial records is important for the future potential of your company. If you are planning on expanding, investors and financial institutions will need to see accurate financial records to verify your business’s potential, profitability, and consistency. 

What’s more, these services will create a clearer picture of your company’s strengths and weaknesses. In turn, you will make well-informed decisions on the direction of your company, making the appropriate adjustments along the way. Bottom line? If you plan to grow your business, you need to be able to quickly access key financial data. Sound bookkeeping and accounting practices allow you to do exactly that.   

Keeping well-maintained financial records are crucial to the success of any business. When it comes to growing your company, you simply can’t afford to neglect proper bookkeeping and accounting. So, make sure to plan a budget for these vital, professional services. 

Looking for help to gain control of your business’s big financial picture? Reach out to C.CAMPBELL AGENCY today.