How Much Does Small Business Bookkeeping Cost?

One of the first questions small business owners ask before hiring an accounting firm is: how much does bookkeeping actually cost? The answer depends on a few variables, but not as many as most people assume. Here is a straightforward breakdown.

Three ways small businesses handle bookkeeping

DIY bookkeeping

Many owners start here. QuickBooks Online or similar software runs $30 to $90 per month depending on the plan. The software cost is low, but the time cost is not. Most small business owners spend 5 to 10 hours per week on financial and administrative tasks, according to SCORE. At a conservative billing rate of $150 per hour, that is $3,000 to $6,000 in owner time every month.

Freelance bookkeeper

Freelance bookkeepers typically charge $30 to $60 per hour, or a fixed monthly retainer of $200 to $600 for basic services. Hourly billing sounds appealing until the month your reconciliation takes longer than expected. Fixed pricing is generally better for planning.

Full-service accounting firm

A full-service firm handles bookkeeping, tax planning, tax preparation, and financial reporting from one team. Monthly fees typically range from $300 to $1,500 depending on transaction volume and service scope. You get more coverage, a consistent team, and year-round tax strategy.

What drives bookkeeping costs

• Transaction volume: more transactions mean more categorization and reconciliation time
• Number of accounts: each bank account, credit card, and payment processor adds complexity
• Industry: businesses with job costing, subcontractors, or complex revenue streams take more time
• Catch-up work: if books are behind, cleanup is billed separately before a recurring engagement begins
• Reporting depth: basic P&L versus full monthly financial package with cash flow analysis

Fixed pricing versus hourly billing

Fixed monthly pricing is almost always better for the business owner. You know what you are paying. The firm has an incentive to be efficient. There are no surprise invoices when something takes longer than expected. Hourly billing works in the firm's favor, not yours.

The real question is not what bookkeeping costs. It is what inaccurate books, missed deductions, and reactive tax filing cost you over time.

What Stone Valley Accounting charges

We publish our prices because transparency is the baseline, not a selling point. Our plans run from $350 per month for the Essential plan (up to 75 transactions) to $950 per month for Premium (up to 500 transactions, weekly categorization, quarterly review calls). All plans include annual tax preparation. Standard and Premium include quarterly tax planning.

We do not bill hourly. We do not charge extra for questions. You know the number before the month starts.

What to watch out for

• Low monthly fees that exclude tax preparation, forcing you to hire a separate firm at year-end
• Hourly billing with no cap on monthly charges
• Catch-up fees buried in onboarding terms
• Offshore bookkeeping teams with limited availability and no advisory context
• Firms that only report backwards and never help you plan ahead

The bottom line

For most small businesses, a full-service firm running $350 to $800 per month is a reasonable investment relative to what clean books, proactive tax strategy, and accurate reporting are actually worth. If you are spending 6-plus hours a week on your books yourself, you are already spending more than that, just in time instead of dollars.