Bookkeepers play a crucial role in the financial management of small businesses, and they play a crucial role in the success of any business, big or small. They are responsible for keeping accurate and up-to-date financial records, which help business owners make informed decisions about their finances. They hold the responsibility for recording and organizing financial data, ensuring accuracy, and providing reports for decision-making purposes.
One of the most common questions that small business owners have when hiring a bookkeeper is, “What is a reasonable hourly rate for a bookkeeper?” In this blog, we’ll discuss factors that influence bookkeeper hourly rates and provide insights into what business owners can expect to pay for NetSuite Bookkeeping Services.
What is a reasonable bookkeeper hourly rate?
According to a survey by the National Association of Certified Public Bookkeepers, the average bookkeeper’s hourly rate in the United States is $40-$60 per hour. However, bookkeeper hourly rates can range from $20 to $100 per hour, depending on the factors discussed above.
While the hourly rate is an important factor to consider, it’s not the only one. When choosing a bookkeeper, you should also consider their experience, reputation, and the scope of services they provide. Choosing the right bookkeeper can help ensure that your financial records are accurate and up-to-date, which can save you time and money in the long run.
Factors that influence bookkeeper hourly rates
One of the key considerations when hiring a bookkeeper is their hourly rate. Hourly rates can vary depending on several factors, including location, experience, education, and the complexity of the work involved. Let’s understand in brief.
Location:
Location is a significant factor that influences hourly rates. Bookkeepers in big cities tend to charge more than those in smaller towns or rural areas. Their hourly rates vary depending on the location of the bookkeeper. This is because the cost of living in cities is generally higher, and the demand for bookkeeping services is higher as well. The major metropolitan areas typically charge higher hourly rates than those in smaller towns or rural areas.
For example, a bookkeeper in New York City might charge upwards of $60 per hour, while a bookkeeper in a smaller town might charge closer to $30 per hour.
Experience:
Experience and education are other factors that can impact hourly rates. Bookkeepers with more experience and higher education levels often charge more than those with less experience or education. The more experience a bookkeeper has, the higher the hourly rate they are likely to charge. Experienced bookkeepers are in high demand and can command higher rates due to their expertise.
Experienced bookkeepers have the skills and knowledge to handle complex financial transactions, and they can often provide additional value-added services, such as financial analysis or tax planning. As a result, their hourly rates are usually higher. Experienced bookkeepers are in high demand and can command higher rates due to their expertise.
Scope of Work:
The complexity of the work involved is another important factor that can affect hourly rates. Some bookkeeping tasks are more complex than others, and bookkeepers may charge more for work that requires a higher level of expertise. As a result, Bookkeepers may charge higher hourly rates for work that requires specialized knowledge or expertise. For example, bookkeeping for a large corporation with multiple subsidiaries and complex financial statements requires a higher level of expertise and attention to detail than bookkeeping for a small sole proprietorship.
Industry:
Bookkeepers who specialize in a particular industry may charge higher hourly rates due to their specialized knowledge of that industry. If you own a small business, one of the most important decisions you’ll make is how to manage your finances. For many small businesses, hiring a bookkeeper is an excellent way to ensure that their financial records are accurate and up-to-date. However, before hiring a bookkeeper, it’s important to understand the bookkeeper’s hourly rate and what factors influence it.
In general, bookkeepers charge between $30 and $80 per hour, with the average hourly rate being around $50 per hour. However, rates can vary widely depending on the factors mentioned above. It is important to note that the hourly rate is not the only factor to consider when hiring a bookkeeper. It is also essential to consider their experience, education, and references to ensure that they are a good fit for your business.
Bookkeeper Hourly Rates vs. Monthly Fees
Some bookkeepers may charge a monthly fee instead of an hourly rate. This fee is typically based on the number of transactions or the complexity of the work required. Monthly fees can range from a few hundred dollars to several thousand dollars per month, depending on the scope of work. For small businesses, a monthly fee can be a more cost-effective option than an hourly rate, as it provides more predictability and stability in their bookkeeping expenses.
In conclusion, bookkeeper hourly rates can vary depending on location, experience, the scope of work, and industry. When choosing a bookkeeper, it’s important to consider these factors and evaluate your options based on the bookkeeper’s hourly rate, experience, reputation, and scope of services provided. The right bookkeeper can help ensure that your small business stays financially healthy and makes informed decisions about its finances.
State By State Breakout
|
|
|
Hourly (mean) |
| Alabama | $37,250 |
$17.91 |
| Alaska | $48,640 |
$23.39 |
| Arizona | $40,930 |
$19.68 |
| Arkansas | $36,310 |
$17.46 |
| California | $47,750 |
$22.96 |
| Colorado | $42,830 |
$20.59 |
| Connecticut | $47,890 |
$23.02 |
| Delaware | $44,760 |
$21.52 |
| Florida | $40,220 |
$19.34 |
| Georgia | $40,330 |
$19.39 |
| Hawaii | $41,620 |
$20.01 |
| Idaho | $38,470 |
$18.50 |
| Illinois | $42,520 |
$20.44 |
| Indiana | $38,300 |
$18.41 |
| Iowa | $38,900 |
$18.70 |
| Kansas | $35,880 |
$17.25 |
| Kentucky | $37,950 |
$18.25 |
| Louisiana | $37,180 |
$17.88 |
| Maine | $39,190 |
$18.84 |
| Maryland | $45,450 |
$21.85 |
| Massachusetts | $47,020 |
$22.61 |
| Michigan | $39,130 |
$18.81 |
| Minnesota | $44,210 |
$21.25 |
| Mississippi | $38,130 |
$18.33 |
| Missouri | $38,340 |
$18.43 |
| Montana | $36,310 |
$17.46 |
| Nebraska | $37,850 |
$18.20 |
| Nevada | $40,100 |
$19.28 |
| New Hampshire | $42,170 |
$20.27 |
| New Jersey | $46,860 |
$22.53 |
| New Mexico | $37,600 |
$18.08 |
| New York | $45,590 |
$21.92 |
| North Carolina | $39,590 |
$19.03 |
| North Dakota | $38,220 |
$18.38 |
| Ohio | $39,830 |
$19.15 |
| Oklahoma | $39,010 |
$18.76 |
| Oregon | $41,840 |
$20.11 |
| Pennsylvania | $40,660 |
$19.55 |
| Rhode Island | $44,120 |
$21.21 |
| South Carolina | $36,860 |
$17.72 |
| South Dakota | $33,970 |
$16.33 |
| Tennessee | $40,380 |
$19.41 |
| Texas | $41,390 |
$19.90 |
| Utah | $39,170 |
$18.83 |
| Vermont | $42,320 |
$20.35 |
| Virginia | $43,140 |
$20.74 |
| Washington | $45,600 |
$21.92 |
| West Virginia | $34,550 |
$16.61 |
| Wisconsin | $37,910 |
$18.23 |
| Wyoming | $38,870 |
$18.69 |
In conclusion, Bookkeepers are important professionals who help businesses keep track of their financial transactions. Their hourly rates can vary widely, depending on location, experience, education, and complexity of work. As a business owner, it is essential to do your due diligence and research to find a bookkeeper who is a good fit for your business and your budget. By hiring the right bookkeeper, you can ensure that your financial data is accurate, organized, and up-to-date, allowing you to make informed decisions for your business.