Being a business owner means handling everything, including sales, production, leads, finances and whatnot. Sometimes, you need a helping hand because juggling multiple things together can lead to several mistakes, especially when it comes to finances. Bookkeeping services can be beneficial. If you let someone else take care of your financial records, you can ensure they’re accurate, save time, and have a clearer idea of your business’s financial status.
You might be wondering, “How much does hiring a bookkeeping service cost?” The answer depends. It comes down to several factors like the size of your business, the number of transactions you do, and how complicated your finances are. Some services are billed by the hour, while others have monthly plans. Whether you’re a one-person operation or run a bigger company, understanding what your bookkeeping might cost can help you plan your budget and avoid surprises.
In this blog, we’ll break down the main pricing options, share average rates, and offer tips on choosing the right service so you can make a wise choice without breaking the bank. Let’s get started!
Bookkeeping Service Pricing in Canada: At a Glance
Bookkeeping prices in Canada aren’t the same for everyone. The cost varies based on a few things, like the size of your business, how complicated your finances are, and whether you hire a freelance bookkeeper or a bookkeeping firm. Typically, you spend anywhere from $30 to $90 an hour or between $200 and $2,500 monthly, depending on your needs.
You can find cheaper monthly rates if you run a small business with fewer transactions. But if your business is growing and needs more in-depth financial help, be ready to pay a bit more. Other things, like your location, the software you use, and your specific industry requirements, can also impact the costs.
Price Model Explained
In Canada, bookkeepers usually charge in three main ways: hourly rates, fixed monthly packages, and project-based pricing. Each option works better for different types of businesses and budgets. Knowing what you’re paying for and what services you will receive.
Hourly Rates
Most bookkeepers bill by the hour, especially for smaller or one-off tasks. In big cities like Toronto or Vancouver, you can expect to pay around $50 to $90 an hour. If you’re in a smaller town or working with someone less experienced, rates might be closer to $30 to $50 an hour. Those with more experience or certification usually charge more, particularly if they provide advice and basic bookkeeping.
Fixed Monthly Packages
Many businesses use monthly packages for regular bookkeeping because they make budgeting easier. If you need full-time help, you can expect to pay anywhere from $2,000 to $4,500 a month, depending on how big and complicated your financial stuff is.
These packages typically include daily bookkeeping, reconciliations, reports, and sometimes payroll or tax coordination.
Value-Based or Project-Based Pricing
This pricing model looks at results instead of time. For example, if you need a bookkeeper to sort out a pile of financial records or set up your accounts from the ground up, you might get a flat rate rather than being charged by the hour or month. It’s a handy choice for businesses with one-time tasks or clear goals.
Factors That Influence Bookkeeping Costs
When it comes to bookkeeping prices in Canada, there’s no one-size-fits-all answer. Several things can change how much you’ll pay. Every little detail matters, from your business size to the software you use. Here’s what you need to know about the costs.
Business Size and Transaction Volume
If your business processes many transactions monthly, a bookkeeper will need more time to keep everything in check. A small online store might only need a few hours of work each month, while a busy retail shop will need daily help. As your business gets bigger, your bookkeeping costs will likely rise too.
Complexity of Services Needed
Not all businesses require the same services. The workload and costs help with payroll, filing sales taxes, managing different currencies, and producing detailed reports. These extra services are usually part of higher-tier packages or can be charged separately.
Experience and Qualifications of the Bookkeeper
You can find cheaper help from someone just starting, but a skilled or certified bookkeeper offers more value, precision, and financial insight. Generally, more experienced bookkeepers charge more per hour or package, but their expertise can help you avoid mistakes that could cost you.
Industry-Specific Considerations
Some fields, like construction or online retail, have special accounting needs. Bookkeepers who know your business well can give you services that fit just right, but those might cost a bit more. Still, their expertise usually means your records will be more accurate, helping you make better choices.
How Often Do You Need Help
How regularly you need bookkeeping help can also affect the cost. Weekly services are pricier than monthly or quarterly ones because they take more time. You might need more frequent check-ins if you want up-to-date reports or are getting ready for a loan or an investor meeting.
The Software You Use
If you already use accounting programs like QuickBooks, Xero, or Wave, your bookkeeper can work faster, saving you some cash. But if you are stuck using spreadsheets or old systems, you might pay more because of the extra manual work involved.
What Is Considered Full Charge Bookkeeping?
Full charge bookkeeping isn’t just about entering data or keeping records. The bookkeeper is in charge of the company’s whole accounting process. They don’t just track transactions; they also take care of payroll, prepare financial statements, reconcile accounts, and often help with taxes.
A full-charge bookkeeper usually works more independently than a regular bookkeeper.
They might handle accounts payable and receivable, record complicated journal entries, and make sure everything complies with regulations. In many small businesses, they’re the go-to for all things finance, almost like a controller.
Hiring a full-charge bookkeeper might be worth the extra cost if you need someone who can do more than keep the books balanced. They can save you a lot of time and hassle.
Conclusion
At the end of the day, the cost of bookkeeping services in Canada varies based on a few factors like your business size, how complicated your finances are, and how often you need help. Whether you go for an hourly freelancer or hire a full-time bookkeeper, you aim to keep your finances in order and make things less stressful.
Consider bookkeeping more than a cost; it’s a way to gain financial clarity and help your business grow. With good bookkeeping, you can spend less time dealing with receipts and more time making wise decisions.
