Bookkeeping may be quoted by the hour, as a fixed monthly service or as an employee’s salary. Compare the same duties and transaction volume before comparing the price.
Calculate the work before the fee
List monthly transaction volumes, bank accounts, payroll headcount, reporting deadlines and any overdue work. Separate routine processing from clean-up, management reporting and tax or BAS services.
A simple hourly-cost example
At an assumed rate of $60 per hour, 20 hours of work costs $1,200 a month before any applicable GST. At 40 hours, it costs $2,400. These are arithmetic examples, not market-rate estimates; use a current quote from the provider.
What changes the quote?
- Experience with your accounting software and industry.
- Transaction volume and the condition of the records.
- Payroll, job costing and reporting requirements.
- The frequency of work and response time required.
- Whether advice, lodgement or specialist services are included.
Compare a service with an employee
A bookkeeping service delivers an agreed scope. An employee works under your direction and needs enough ongoing work, access and supervision. For an employee, budget for employment costs and equipment as well as salary. A dedicated offshore hire is also a staffing arrangement, with your business retaining payment and approval responsibilities.