If you’re considering hiring a bookkeeper, one of the first questions you’ll ask is: How much does a bookkeeper cost? The cost of bookkeeping services varies based on factors like experience, qualifications, location, and service model. Whether you opt for an in-house bookkeeper, a freelancer, or an outsourced service, each option comes with different price points and benefits.
This guide breaks down the different pricing models, average bookkeeping costs, and how bookkeepers charge for their services. We’ll also explore how hiring a bookkeeper can ultimately save your business money.
How Much Does a Bookkeeper Cost?
The average bookkeeper salary in Australia ranges between $60,000 and $80,000 per year, excluding benefits and additional costs.
- Hourly rate: Typically $100 – $150 per hour, depending on expertise and tasks.
- Outsourced bookkeeping services: Monthly fees range from $500 to $2,500, making this a more cost-effective solution for many businesses.
However, these figures can fluctuate based on business size, complexity of financial records, and service requirements. Let’s explore how bookkeepers charge for their services.
How Do Bookkeepers Charge Businesses?
Bookkeepers generally charge businesses using one of these three models:
1. Salary – In-House Employee
A full-time bookkeeper is a valuable asset for large businesses with frequent transactions. Public companies and enterprises with annual revenues exceeding $100 million often employ dedicated accounting teams to handle complex financial operations.
Costs to consider:
✔Base salary: Ranges from $60,000 (entry-level) to $80,000+ (experienced).
✔ Recruitment and training expenses
✔ Office space, equipment, and software costs
✔ Employee benefits (superannuation, allowances, paid leave, etc.)
Even hiring a part-time bookkeeper could cost $35,000+ per year, not including additional accounting and tax services. While having an in-house bookkeeper can be beneficial, it may not always be the most cost-effective solution.
2. Hourly Rates – Freelancers, Sole Traders, and Consultants
Hiring a freelance bookkeeper on an hourly basis is a flexible option. Since they are not employees, you avoid costs like benefits, office space, and training.
- Hourly rate: $100 – $150 per hour
- Monthly cost estimate: If a freelancer works 20 hours per month at $150 per hour, you could pay $3,000 per month.
- Downside: Fluctuating hours make it difficult to predict costs, and some freelancers may take longer to complete tasks, increasing expenses.
3. Fixed Monthly Fee – Online Bookkeeping Services
Outsourcing to a bookkeeping service is often the most cost-effective choice. Providers like Tax Visory offer pricing plans starting at $545 per month, covering essential bookkeeping tasks.
Typical services included:
✔Dedicated expert bookkeeper
✔ Accrual-based accounting in real time
✔ Monthly financial statements (Profit & Loss, Balance Sheet, Cash Flow)
✔ Quarterly BAS lodgement
✔ Invoice and receipt tracking tools
Why choose outsourcing?
✔More affordable than hiring in-house staff
✔ Predictable, fixed monthly cost
✔ Scales with your business as it grows
Factors Affecting Bookkeeping Costs
Beyond pricing models, several factors influence the cost of bookkeeping services:
🔹 Location: Salaries and rates vary by city. For example, a Sydney bookkeeper earns around $68,002 per year, while in Perth, the average is $63,772.
🔹 Experience & Qualifications:
- Entry-level bookkeepers handle basic tasks like data entry, invoicing, and bank reconciliation.
- More experienced bookkeepers may provide BAS preparation, financial statements, and compliance support, leading to higher costs.
🔹 Complexity of Services:
- Basic bookkeeping tasks (e.g., recording transactions, tracking expenses, generating reports) cost less.
- Advanced services (e.g., BAS lodgements, accounts payable management, financial analysis) come at a higher rate.
🔹 Business Size & Transaction Volume:
Larger businesses with higher transaction volumes require more frequent bookkeeping, increasing costs.
How Hiring a Bookkeeper Saves Money
Although hiring a bookkeeper is an expense, it ultimately helps save your business money in several ways:
✔ Reduced Accounting Costs
A bookkeeper organizes financial records, reducing the workload for accountants. Since accountants charge higher rates, this can lead to substantial cost savings.
✔ Lower Costs Compared to Accountants
Many bookkeepers handle payroll, accounts payable, BAS lodgements, and financial reporting—tasks that would cost significantly more if done by an accountant.
✔ More Time for Revenue-Generating Activities
A bookkeeper takes care of back-office financial tasks, allowing you to focus on growing your business. More business means more revenue, which can easily cover the cost of bookkeeping services.
✔ Improved Accuracy & Compliance
Errors in bookkeeping can lead to penalties, missed tax deductions, and compliance issues. A professional bookkeeper ensures records are accurate and up to date, reducing financial risks.
✔ Easier Tax Lodgements
With a bookkeeper keeping track of all financial transactions, tax season becomes much less stressful and more efficient.
Choosing the Right Bookkeeping Solution for Your Business
Understanding bookkeeping costs helps you determine the best solution for your business needs. Whether you’re a startup, growing business, or enterprise, hiring a bookkeeper frees up your time, ensures compliance, and supports financial stability.
For most businesses, outsourcing to an online bookkeeping service is the most cost-effective option. It provides high-quality service at a fraction of the cost of an in-house bookkeeper, with the added flexibility to scale as needed.
💡 Need a Reliable Bookkeeping Team?
Tax Visory provides expert bookkeeping services tailored to your business. Whether you need day-to-day bookkeeping, BAS lodgement, or financial reporting, we’ve got you covered.
📞 Contact us today to streamline your bookkeeping and focus on what truly matters—growing your business!
