"How much does bookkeeping cost?" is one of the first questions we hear. The honest answer is that it depends on your business. Two companies with the same sales can need very different amounts of work. These are the factors that change the price.
1. Number of transactions and accounts
A business with one bank account and 40 transactions a month is very different from one with three bank accounts, two credit cards and 400 transactions. More activity means more time reconciling and categorizing.
2. Payroll and contractors
Employees add payroll runs, payroll tax filings and year-end W-2s. Contractors add 1099 tracking and filings.
3. How current your books are
If your books are up to date, we start monthly service right away. If you are months or years behind, there is a one-time catch-up first.
4. Type of business
Inventory, sales tax, multiple locations or job costing for contractors require more detailed work than a simple service business.
5. Reports and advice you want
Some owners only need their books ready for taxes. Others want monthly reports, budgets and a meeting to review the numbers.
What should be included
- Monthly reconciliation of every bank and credit card account
- Categorized transactions and a clean general ledger
- Monthly profit and loss statement and balance sheet
- Year-end books ready for your tax return
- Someone you can call with questions
Do it yourself or hire a pro?
If your business is very small and you enjoy it, doing your own books with a good QuickBooks setup can work. When it takes more than a few hours a month, or mistakes start to cost you money, hiring a bookkeeper usually pays for itself.