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Bookkeeping Rates – How Much Should You Pay?

February 10th, 2009 · 3 Comments · Bookeepers

Bookkeeping rates – Looking for rate comparisons?

That’s a very good question. But what does the answer tell you? Is a $30/hr bookkeeper better than a $90/hr bookkeeper? Maybe and maybe not. Contact us for a checklist of what to ask before hiring your bookkeeper

Bookkeeping Rates - How much do you charge?When shopping around comparing prices on whitegoods, for example, at least you can compare model numbers, and see that one store maybe discounting the same make and model as another store.

So when a small business owner contacts a bookkeeper asking for their rates, what question is the client actually asking? How does knowing whether the bookkeeper charges $20/hr or $60/hr actually help the business owner?

In our experience, clients that are more focused on the bookkeeping rates than the level of service that we can provide, view their bookeeping as an expense to their business rather than an investment.

What is the difference between investing in a good bookkeeper and saving money by engaging a cheap bookeeping service?

The difference between investing in a good bookkeeper and saving money by engaging a cheap bookeeping service is quite simple.

If your bookkeeper is skilled and experienced in the art of bookkeeping, if they can turn a shoe-box full of receipts and invoices into a neatly organised filing system, and generate the necessary reports for you and / or your accountant, then why should you not reward that bookkeeper for their expertise?

If you want monkeys, then pay peanuts. If you want to save (short – term) on bookkeeping fees, then go right ahead and contact a random selection of bookkeepers, and engage the cheapest.

Ask yourself this. Why are these bookkeepers the cheapest? Are they just starting out and looking for some businesses to “practice and get some experience with”? Are they struggling to get (and keep) clients and believe by charging themselves out at a low rate will solve their (and their clients) problems?

Why are good bookkeepers hard to find?
Maybe you ‘ve had a bad experience with your previous bookkeeper and are being cautious about hiring another bookkeeper. Good bookkeepers are hard to find. You want to know why? Because there are only so many hours in a week, and once those bookkeepers have a full week, they neither want nor need new clients.

We’ve been working with a team of bookkeepers who all have at least seven years experience. If a bookkeeper has lasted seven years, they are sure to know what they are doing. Don’t be fooled by them waving a piece of paper at you. It’s the “School of Hard Knocks” where good bookkeepers become great book-keepers.

Here’s another thing: In many cases freelance bookeepers will have a range of clients that use different accountants. So don’t you think that if there were any problems in the way the bookkeepers are doing their job, that at least one of the accountants would have picked up on some issues.

Contact us for a checklist of what to ask before hiring your bookkeeper

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3 responses so far ↓

  • 1 Nilsson Denver // Feb 11, 2009 at 1:33 am

    Well said. The best clients are those that went cheap, got stung and then realised that your accounts are worth spending good money on. You buy cheap you get cheap. You pay for experience, you get experience.

  • 2 Gaylene // Apr 29, 2009 at 10:12 am

    I agree! I am tired of going into small businesses and cleaning up a mess from the previous bookkeeper. Unfortunately too many business owners see us as a ‘necessary evil’ and too many do not understand and care about their set of accounts. I no longer carry out work for people like that…

  • 3 Caroline Darling // Jun 26, 2009 at 12:24 pm

    Yes I agree, have had many businesses I’ve had to clean up a mess for. I have also just completed the ITP tax Preparers course (and scouredr an average of 96%) and they want to pay me $21 per hour. What a joke!! I’m sorry but I will not work for that little as me services and brain are worth much more as one of my clients has told me.