The cost of bookkeeping for a small business depends mostly on how much work the books take each month. A business with one bank account and a few dozen transactions needs less time than one with several accounts, employees, and hundreds of sales. This article explains what usually affects the price, what a monthly fee typically covers, and how pricing works at Choice Business Advisors.

What affects the price of bookkeeping

Bookkeepers set prices in different ways, but most look at the same basic factors:

  • Transaction volume. The more sales, purchases, and payments there are to record and review, the more time the work takes.
  • Annual sales. Sales are a simple way to estimate the size and activity of a business, so many firms use them as a starting point.
  • Number of accounts. Each bank account, credit card, loan, and payment app has to be recorded and reconciled.
  • Condition of the books. Books that are current and organized take less time to maintain than books that are months behind.
  • Payroll. Paying employees adds payroll activity that needs to be recorded correctly. Running payroll itself is often a separate service.
  • Extra detail. Tracking inventory, several locations, or results by job or project can add work.

No two businesses are exactly alike. That is why a quote based on a real conversation is more useful than a single number from a website.

Monthly bookkeeping vs. catch-up bookkeeping

There are two different kinds of bookkeeping work, and they are priced differently.

Monthly bookkeeping is the ongoing service. Each month, transactions are recorded and categorized, accounts are reconciled, and reports are prepared. Because the work repeats, it is usually priced as a monthly fee.

Catch-up bookkeeping is a one-time project to bring past months or years up to date. If your books are behind, this usually needs to happen before regular monthly work can begin. The cost depends on how much time is missing and how organized the records are.

If your books are behind, it is fine to say so. Many owners start with a catch-up project and then continue with monthly bookkeeping.

What a monthly bookkeeping fee usually covers

What is included varies from one firm to another, so it is worth asking. A monthly bookkeeping service commonly includes:

  • Recording and categorizing transactions from your bank, credit card, and payment accounts
  • Reconciling those accounts against your statements
  • Regular financial reports, such as a profit and loss statement and a balance sheet
  • Someone you can contact with questions about your numbers

Services that are often priced separately include tax return preparation, payroll, and the subscription to your accounting software. Knowing what is and is not included helps you compare quotes fairly.

How pricing works at Choice Business Advisors

At Choice, monthly bookkeeping starts at $200 per month. The QuickBooks subscription is separate and is not included in that price.

Pricing is based on your annual business sales. Businesses with lower sales start at the lower end, and the monthly price goes up as sales grow, because larger businesses usually have more activity to record and review. You can see the current pricing on our monthly bookkeeping page.

The starting price does not mean every business pays the minimum. Before you decide anything, we talk about your business, the state of your books, and the help you want each month. Your proposal then sets out the monthly work and the price.

Other services are priced separately. Their starting prices are:

  • Catch-up bookkeeping from $200
  • Business tax preparation from $300
  • Individual tax preparation from $200
  • Monthly tax advisory at $50 or $100 per month, depending on your sales
  • Payroll setup from $250

Is bookkeeping worth the cost?

That depends on your business, and it is a fair question to ask. A few things to weigh:

  • Your time. Hours spent sorting receipts and matching bank statements are hours not spent with customers or on growing the business.
  • Tax preparation. Organized books give your tax preparer clean numbers to work from, instead of a year of records to sort out first.
  • Better decisions. Current reports show whether you are profitable, where money is going, and how this year compares with last year.
  • Someone to ask. Having a person who knows your numbers makes it easier to think through a decision before you make it.

Let's talk about your business

The easiest way to know what bookkeeping would cost for your business is to talk about it. Tell us about your business, your sales, and the state of your books, and we will go over the options and the price before you decide. Send us a message in English or Spanish to start the conversation.

Questions about this topic

Why does the monthly price go up as my sales grow?

Businesses with more sales usually have more transactions, accounts, and activity to record and review each month. Basing the price on annual sales is a simple way to match the fee to the amount of work involved.

Is QuickBooks included in the monthly price?

No. At Choice, the QuickBooks subscription is a separate cost. Monthly bookkeeping starts at $200 per month, not counting the software.

My books are months behind. Will that change what I pay?

Usually the past months are brought up to date first as a separate catch-up project, which starts at $200 at Choice. We talk about what needs to be caught up before giving you a price.

Will I know the exact price before I sign up?

Yes. After we talk about your business, you receive a proposal that sets out the monthly work and the price. You can review it and ask questions before you decide.

Written by the team at Choice Business Advisors, a bookkeeping, tax, and advisory firm based in Utah serving small businesses across the United States in English and Spanish.