How much does it cost to hire a bookkeeper? Small business owners can expect to fork out between £15-£30 per hour for a bookkeeper and maybe even more if you require high-level expertise and certification. Ultimately it depends on the size and financial health of your business but factors, such as the bookkeeper’s experience, can also determine the fee.
You may be questioning if it's worth the investment and if there are alternatives so here’s everything you need to know about the cost of hiring a bookkeeper.
- Breakdown of the Costs Involved When Hiring a Bookkeeper
- Do I Have to Hire a Bookkeeper?
Breakdown of the Costs Involved When Hiring a Bookkeeper
There are pros and cons to hiring a bookkeeper. As mentioned before, the costs depend on many variables.
From the complexity of your business to how much preparation your records require for tax submission, they all play a part in the fee for hiring a bookkeeper.
Financial Health of Your Business
As a small business owner, you multitask across the company and often have several tasks that need your attention at the same time. Keeping a record of vital financial information can feel like a dull chore you’d rather not do, however, letting your bookkeeping suffer can be a costly cleanup for whoever you hire.
What You Require From Your Bookkeeper
You may only need your bookkeeper to complete your financial records so it frees up time that you can spend elsewhere in the business. However, outsourcing is a mistake that small business owners often make. Your bookkeeper may offer services you don’t really need and can be an unnecessary added cost.
Yes, it’s one less thing to worry about, but nothing is more costly than losing sight of spending and outstanding payments in the business. There are better ways to invest your money than simple bookkeeping you could do yourself.
The Complexity of Your Business
How many staff are on the payroll, how many clients need invoicing and the number of monthly transactions are all factors that contribute to the complexity of your business’ bookkeeping.
You can invest in a bookkeeper who is an expert in your industry's finances but because of the specialised knowledge, they may be limited or more expensive.
Most importantly, there’s no guarantee that your data won’t be compromised when you outsource. With digital vulnerabilities that can happen at any time, outsourcing can be inefficient and poorly managed.
Complying with MTD
Steps towards taking your tax online should have already been made, with the MTD scheme coming into play, businesses can be caught out if they're not already onboard. A bookkeeper will have to migrate your business and ensure it’s ready.
These are just some of the things bookkeepers do for small businesses that affect the cost of their services. However, there is an alternative.
Do I Have to Hire a Bookkeeper?
Using a spreadsheet might seem like the most cost-effective and simple method of recording receipts and invoices. However, it’s incredibly vulnerable to human error and not a viable approach in today's modern society.
Many small businesses are guilty of using spreadsheets to manage their finances, but there are alternatives to consider before you think about hiring a bookkeeper.
Hire a Freelance Bookkeeper to Get Back on Track
You might not need to employ a bookkeeper part-time on a regular basis. For example, you may have just neglected your books while attending to other business matters and need to get them fixed - and fast - so you can continue to keep on top of them.
This is when a freelancer would come in handy.
Freelancers may work off a fixed fee or hourly rate and it could depend on how bad of a shape your books are in. This is an excellent alternative for a business owner looking to take charge or their finances and be more actively involved but just need a clean slate to get started.
Take Advantage of Helpful Resources
There are free workshops and webinars by HMRC that can help if you’re a complete beginner to bookkeeping. You probably have a general idea but taking your learning further can help you better understand good bookkeeping practices and how to prevent mistakes.
Other resources include blog content. You can read them at your own pace and they're widely accessible online and packed with helpful information.
Download an Easy-To-Use App
Keeping track of daily transactions can be made easier by using helpful software such as a simple bookkeeping app like EasyBooks. It’s much simpler to keep an eye on cash flow and helps you keep detailed records in the palm of your hand.
You don’t need degrees or certificates to use and understand them; bookkeeping apps are generally straightforward.
Doing your books is unavoidable, so you might as well find a way that makes it easier. Now you know how much it costs it hire a bookkeeper, it’s an ideal time to learn.
Don’t Hire a Bookkeeper - Do It Yourself With Our Helpful Checklist
You shouldn’t be worried about outsourcing your sensitive data and how much a bookkeeper costs. With the right knowledge and a helpful app, you can make sure you don’t have to fork out for an expert.
Whether you’ve been managing your books for years or this is your first time taking charge of your financial records, download our free checklist now.