Running a business is exciting—until you realize you’re spending more time tracking expenses than actually making money. That’s where bookkeeping comes in! But how much does bookkeeping really cost, and is it worth it? Let’s break down the pricing, whether bookkeepers charge hourly or flat rates, and if you can write off bookkeeping services on your taxes.
💡 How Much Does Bookkeeping Cost for a Small Business?
The cost of bookkeeping varies depending on factors like:
✅ Business size – More transactions mean more work!
✅ Complexity – Payroll, inventory, and multiple accounts require more attention.
✅ Service level – Do you need just basic tracking or full financial reporting?
✅ Software & tools – Some bookkeepers charge extra for software setup and integration.
📌 Average Cost Breakdown
Here’s a general idea of what small businesses pay for bookkeeping:
| Service Type | Estimated Cost |
|---|---|
| DIY Software (QuickBooks, Xero, Wave, etc.) | $20–$100/month |
| Freelance Bookkeeper | $300–$1,500/month |
| Outsourced Bookkeeping Firm | $500–$5,000/month |
| In-House Bookkeeper (Full-Time) | $40,000–$60,000/year + benefits |
💡 Pro Tip: If your business is small and simple, DIY bookkeeping software may be enough. But as your business grows, outsourcing to a bookkeeping pro can save time and prevent costly financial mistakes.
📊 Hourly vs. Flat-Rate Pricing: What’s Best?
Bookkeepers typically charge in one of two ways:
⏳ Hourly Rates
💰 $25–$100+ per hour (varies based on experience and location)
✅ Best for businesses with irregular or one-time needs
✅ Good if you need minimal ongoing bookkeeping
✅ Can be costly if work takes longer than expected
📦 Flat-Rate Monthly Pricing
💰 $300–$2,500+ per month (varies based on workload)
✅ Best for businesses needing consistent bookkeeping
✅ No surprises—predictable monthly costs
✅ Covers ongoing support, reports, and reconciliations
📌 Which One Should You Choose?
If you only need occasional help, an hourly bookkeeper might work. But if you want ongoing financial organization and tax readiness, a flat-rate package is usually more cost-effective and gives you unlimited support without hourly fees piling up.
💡 At MCMG Tax, we offer transparent, flat-rate pricing to keep things simple!
📝 Are Bookkeeping Services Tax-Deductible?
Yes! Bookkeeping is considered a business expense, which means you can deduct it on your tax return.
✅ IRS Classification: Bookkeeping falls under professional services just like legal and accounting fees.
✅ What You Can Deduct: Monthly bookkeeping fees, software subscriptions, and consulting fees.
✅ Bonus: If your bookkeeper also handles payroll, that cost is deductible too!
💡 Pro Tip: Keeping clean, tax-ready books doesn’t just help you run your business—it also reduces your taxable income and keeps the IRS happy.
📞 Ready for Stress-Free Bookkeeping?
If bookkeeping is eating up your time (and sanity), it’s time to outsource. MCMG Tax offers affordable, hassle-free bookkeeping so you can focus on growing your business!
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