How much does Bookkeeping Cost?

Bookkeeping fees vary based on both the location and the type of consultation you seek. In most Australian states and cities, you can hire a bookkeeper for anywhere between $30 to $100 per hour. However, if you need a bookkeeper for a complex consultation, you may pay several hundred dollars per hour.

Bookkeeping Costs Across Australia

City	Average Cost per hour
Sydney	$40 – $60
Melbourne	$30 – $100
Brisbane	$50 – $85
Perth	$50 – $100

Oneflare Customer Quotes for Bookkeeping

The varying nature of bookkeeping jobs means that pricing is always different. Below is a range of quotes that Oneflare customers have received.

State	Average Cost
NSW	$100 – $3,000
VIC	$130 – $2,500
QLD	$100 – $2,000
WA	$130 – $1,000

Job Description

A bookkeeper records financial transactions, and the job is considered part of the accounting field. Transactions handled by bookkeepers generally include payroll processing, cash management, invoice processing, purchases, receipts and sales. Bookkeepers also handle payments made by an individual or by an organization. 

The role of a bookkeeper varies between big and small businesses. A noticeable difference is the volume of activity. A bookkeeper working for a small business will have fewer paper invoices and fewer electronic documents to process. In terms of accounting, the smaller company with a lower volume means the job requires less expertise to manage the books. In essence, a small business can usually get by without hiring an experienced accountant.

Invoices (Accounts Receivable)

In general, if you have a large number of accounts that you receive money from, then the bookkeeper hourly rate is higher. If you are a small business and need help with managing only a few dozen accounts, then you might be charged per job, or you may be billed for only a few hours of work. 

Bills (Accounts Payable)

Accounts payable refers to the reports your business must pay. Like accounts receivable, the number of invoices payable is determined by the size of your business. If you are a small business, you may be able to handle accounts on your own without hiring a bookkeeper. However, if you’re a large business, it’s best to hire an experienced bookkeeper who can devote time each month to account management. 

The Number of Employees and How Payroll Is Processed

To process payroll, a bookkeeper must understand income tax laws. The bookkeeper should know various payroll software, such as QuickBooks or Quicken.

The volume of Monthly Transactions

In general, the higher your volume of monthly transactions, the more time a bookkeeper will have to spend managing your accounts. Some bookkeepers charge a flat rate for a certain amount of service hours each month. 

Number of Bank and Credit Card Accounts to Reconcile

If you are a business with a large number of sales and purchases, you can expect your bookkeeping tasks to be more complex and time-consuming. In general, you should also expect to pay a higher bookkeeping cost. You’d probably pay up to $100 per hour. 

External or Internal Services

An internal bookkeeper is a full-time employee of a business. An external bookkeeper works outside of the business office and is only responsible for specific tasks. In general, hiring an external bookkeeper will save you money. An external bookkeeper is generally the right choice if you only need bookkeeping services a few hours per week. 

Tasks You Need Completed

In general, you should expect to pay more for a bookkeeper if you require them to take on significant duties and responsibilities. For instance, if your bookkeeper is handling a large payroll in which employees are paid multiple times each month, expect to pay more for these services. Handling complex tax situations and managing books that require extensive lists of payables and receivables will also cost more. You can hire these types of bookkeepers for about $350 per hour, but in the most complex cases, you may pay more. 

Experience/Qualifications of the Bookkeeper

A bookkeeper does not need an accounting degree. However, you should seek someone who has some formal training, such as an earned diploma or certificate in bookkeeping.

Single-entry system

A single-entry system is generally only used for small businesses with a small number of transactions. You can usually hire a single-entry bookkeeper inexpensively, and this is because he or she doesn’t need a vast knowledge of complex accounting principles. Expect to pay on the low end of $30 to $70 dollars per hour.

Double-entry system

For double-entry accounting, you can expect to pay $40 to $75 per hour. The majority of businesses, even smaller ones, use double-entry bookkeeping. In a double-entry system, for each account, there are two columns that each transaction is located in. The bookkeeper creates two entries for each operation–a credit in one and a debit in the other. 

Bookkeeping Software

Xero and MYOB are both accounting software programs. Both programs can be used for all basic accounting functions. Xero and MYOB each cost about $20 to $90 per month. 

However, many people choose Xero simply because it’s monthly pricing is more straightforward than MYOB’s. In certain exceptional cases, MYOB may cost as much as $130 per month. 

Virtual Bookkeeping

Virtual bookkeeping involves outsourcing bookkeeping tasks to people who work remotely. In general, the cost of outsourcing the work is no more or less expensive than hiring an external bookkeeper. 

Bookkeeping Rates

Some bookkeeping tasks are more complex than others and require you to pay extra. The following functions include typical prices you should expect to pay.

Bookkeeping Task	Average Cost per hour
General Accounts Management	$150
MYOB	$130
Bank Reconciliation	$150 – $200
Accounts Payable & Receivable	$300
GST & BAS	$350

Two main components heavily impact the cost of bookkeeping services: accounting application and data entry. Simple data entry will cost less compared to jobs involving tasks such as balancing account books.

How to Create an Accurate Estimate

• Search online for bookkeeping services.
• Contact the bookkeeper by phone or email for a quote.
• Compare prices from several certified bookkeepers.

Licencing and Qualifications 

• Earn a certificate or diploma in bookkeeping.
• Join a professional membership organization.
• Follow the steps to become a BAS agent in your state.
• Get insured to protect yourself against negligence.

How to Save Money Hiring a Bookkeeper

• Consider each candidate’s years of experience.
• Shop around.
• Ask if the bookkeeper belongs to a professional membership organisation. (Such organisations hold bookkeepers to standards of quality. It’s better to pay more upfront for a bookkeeper than to pay to replace a poor choice.)

 

* The cost data is based on Oneflare and third-party sources