12 questions answered
Bookkeeping FAQs
Straight answers to the bookkeeping questions small business owners ask us most: what it costs, what a bookkeeper actually does, and when it makes sense to stop doing it yourself.
Cost and pricing
- How much do bookkeeping services cost?Bookkeeping services for a small business usually cost $250 to $1,000 a month on a monthly plan, or $50 to $150 an hour when billed hourly.
- How much does monthly bookkeeping cost?Monthly bookkeeping for a small business typically runs $300 to $500 a month for under 100 transactions, and $500 to $1,000 or more for higher volume, payroll entries, or multiple entities.
- How much does catch-up bookkeeping cost?Catch-up bookkeeping usually costs $500 to $5,000 or more, depending on how many months are behind, how many accounts need reconciling, and how messy the records are.
- Is bookkeeping tax deductible?Yes, bookkeeping fees are tax deductible as an ordinary and necessary business expense.
What bookkeepers do
- What does a bookkeeper do?A bookkeeper records every business transaction, categorizes it, and reconciles bank, credit card, and loan accounts against their statements each month.
- What is included in monthly bookkeeping?Monthly bookkeeping usually includes categorizing transactions, reconciling every bank, card, and loan account, recording payroll and sales tax, and delivering a profit and loss statement and balance sheet.
Keeping books accurate
Hiring a bookkeeper
- Can a bookkeeper prepare taxes?A bookkeeper can prepare tax returns if they have an IRS Preparer Tax Identification Number (PTIN), but many do not.
- What is the difference between a bookkeeper and an accountant?A bookkeeper records and reconciles your day-to-day transactions.
- Do small businesses need a bookkeeper?Most small businesses need a bookkeeper once they have regular monthly transactions, employees, sales tax, or a loan.
- Should I hire a bookkeeper or do it myself?Do your own bookkeeping if you have under 50 transactions a month, one bank account, and no payroll.
Did not find your question?
Ask it on a free 30-minute call. No obligation, all 50 states.