Outsourced bookkeeping fees are typically not one-size-fits-all. Instead, they are calculated based on the complexity of your financial ecosystem. Most modern bookkeeping firms use value-based pricing or tiered packages based on transaction volume and account complexity.
Key Pricing Factors
Transaction Volume: The more lines of data to categorize and reconcile, the more time required. This includes every expense, deposit, and transfer.
Reconciliation Complexity: Each bank account, credit card, and payment processor (like Stripe or PayPal) adds to the monthly workload.
Accounting Method: Cash basis is simpler and cheaper, while Accrual accounting (tracking accounts payable and receivable) requires more detailed monitoring.
Revenue Size: Higher revenue often correlates with higher risk and more complex sales tax or payroll requirements.
Example Calculation: Small Agency
A business with $250,000 in annual revenue, 100 monthly transactions, and 3 bank accounts on a Standard service level might expect to pay approximately $450 – $600 per month. If they have 6 months of messy books that need "cleaning up," a one-time fee of $1,500 – $2,500 may be applied first.
Monthly vs. Hourly Pricing
Most experts recommend flat monthly fees over hourly billing. Flat fees provide predictable cash flow for the business owner and incentivize the bookkeeper to use efficient automation tools rather than working slowly to bill more hours.
function calculateBookkeepingFee() {
var transactions = parseFloat(document.getElementById('bk_transactions').value) || 0;
var accounts = parseFloat(document.getElementById('bk_accounts').value) || 0;
var revenue = parseFloat(document.getElementById('bk_revenue').value) || 0;
var serviceMultiplier = parseFloat(document.getElementById('bk_service').value) || 1;
var cleanupMonths = parseFloat(document.getElementById('bk_cleanup').value) || 0;
// Base Calculation Logic
var baseFee = 200;
// Transaction cost: tiered
var transactionFee = transactions * 0.85;
// Account cost
var accountFee = accounts * 35;
// Revenue complexity factor (approx 0.02% of monthly revenue)
var monthlyRevenue = revenue / 12;
var revenueFactor = monthlyRevenue * 0.00025;
// Sum and apply service multiplier
var totalMonthly = (baseFee + transactionFee + accountFee + revenueFactor) * serviceMultiplier;
// Round to nearest 5
totalMonthly = Math.ceil(totalMonthly / 5) * 5;
// Cleanup fee calculation (approx 75% of the monthly fee per month of cleanup)
var cleanupTotal = 0;
if (cleanupMonths > 0) {
cleanupTotal = (totalMonthly * 0.75) * cleanupMonths;
}
// Display Results
document.getElementById('bk_result_box').style.display = 'block';
document.getElementById('bk_monthly_price').innerHTML = '$' + totalMonthly.toLocaleString() + ' / mo';
if (cleanupTotal > 0) {
document.getElementById('bk_cleanup_price').innerHTML = 'One-time Cleanup Fee: $' + cleanupTotal.toLocaleString();
} else {
document.getElementById('bk_cleanup_price').innerHTML = ";
}
var levelName = "Basic";
if (serviceMultiplier == 1.4) levelName = "Standard";
if (serviceMultiplier == 2) levelName = "Premium";
document.getElementById('bk_breakdown').innerHTML =
"This estimate includes management of " + transactions + " transactions across " + accounts +
" accounts using " + levelName + " service standards. Prices may vary based on specific software integrations (e.g., inventory management or complex payroll).";
// Scroll to results
document.getElementById('bk_result_box').scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}