Bookkeeping rates are based on a variety of factors, and can sometimes vary to extremes. When it comes to a small business getting the most for its money, it is important to understand what bookkeeping rates are based upon, and how to find the lowest rates for the best work.
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What Are Bookkeeping Rates Based Upon?
Whether your bookkeeper charges a flat monthly fee or an hourly rate, the bookkeeping costs for your small business will depend on a number of issues. The first of these things is the nature of transactions completed by the business; this includes the number of bills received and paid monthly and the number of invoices submitted to customers each month.
Bookkeepers tend to charge higher rates if a business needs its bank account reconciled, although this usually only takes about an hour for a small business. If a bookkeeper is expected to compose a Profit and Loss Statement, Balance Sheet, and Statement of Cash flow, which one usually is, that can raise bookkeeping expenses for your business, but not usually by much.
The rate that a bookkeeper will command also has to do with experience and location. A bookkeeper will usually try not to charge more than the competition in the area does; however, bookkeepers with years of expertise tend to use that to their advantage and charge a larger rate than a novice would.
However, you get what you pay for, and sometimes it is worth paying higher bookkeeping costs to make sure that the work being done is accurate, and that the service is of high quality.