How much do bookkeepers charge in Australia?

Introduction:

How much does a bookkeeper charge in Australia? This is a question that many entrepreneurs want to know, as they need to budget for their finances.

In this blog post, we will take a look at the average cost of having a bookkeeper and what factors can affect these prices. So, if you are curious about how much you will need to spend on bookkeeping services, read on!

Did you know that the lowest average bookkeeping rates in Australia are around $24 per hour? But there are several factors that can affect these prices. For example, larger businesses have to pay more than smaller ones due to the increased amount of work involved. And rural areas may have slightly higher costs than metropolitan centers.

Additionally, the level of experience and location of the bookkeeper can also impact their fees. Some bookkeepers charge a flat fee for their services, while others charge hourly rates. It's essential to understand these different pricing models to make an informed decision when choosing a bookkeeper for your business.

By the end of this blog post, you'll have a better understanding of bookkeeper charges in Australia and what factors to consider when budgeting for bookkeeping services. So, let's dive in and explore the world of bookkeeping business fees in Australia,

What are the duties of a bookkeeper?

As an entrepreneur, you wear many hats. You are the CEO, the salesperson, and everything in between. So, it's no surprise that you might be wondering if you can handle the finances on your own or if you need to hire a professional. Let's take a closer look at what bookkeepers do and how they can help your firms.

What does a bookkeeper really do? Most people think that bookkeepers just sit around all day recording transactions in ledgers and reconciling accounts. But there is so much more to it than that! A good bookkeeper is someone who understands your organisation and can provide valuable insights into your financial situation. They can also save you time and money by keeping your books up-to-date and accurate.

So, what does a typical day in the life of a bookkeeper look like? Here are some of the accounting services that bookkeepers perform on a daily basis:

• Recording transactions

  Bookkeepers are responsible for recording all financial transactions in the organisation’s books, including sales, purchases, payroll, etc. They must also be familiar with accounting principles to ensure that entries are correctly recorded in the correct accounts and categories.

• Creating financial reports

  Bookkeepers also create financial reports that are used by business owners or managers. Reports can include profit & loss statements, balance sheets, cash flow statements, and more. These reports help track current performance, compare actual results with budgeted estimates, and provide valuable insights into the organization’s financial status.

• Maintaining records

  Bookkeepers are responsible for ensuring that all records related to financial transactions are kept up-to-date and accurate at all times. This includes invoices, receipts, bank statements, and other documents.

• Managing taxes

  Bookkeepers must also be familiar with taxation laws in their region to ensure the organisation is compliant with all local tax regulations. They are responsible for filing taxes on time and accurately, as well as keeping up-to-date with any changes in the tax code.

• Providing insights and advice

  Bookkeepers not only perform their usual duties but also provide valuable accounting advice to business owners or managers. This advice may include guidance on managing cash flow, budgeting, and other aspects of financial management.

• Bank reconciliation

  Bookkeepers are also responsible for reconciling the bank accounts of businesses. This involves comparing the totals of each account with the corresponding entries in the general ledger to ensure accuracy and compliance.

• Invoicing customers

  Furthermore, they must generate and send out invoices to customers. This may involve setting up payment plans, tracking payments, and ensuring the timely collection of receivables.

• Payroll processing

  Bookkeepers must also be familiar with payroll laws and regulations to ensure employees are paid accurately and on time. This includes setting up direct deposit systems, calculating overtime, tracking bonuses or commissions, and filing taxes related to payroll.

• BAS lodgement

  They are also responsible for lodging BAS statements with the Australian Tax Office. This includes calculating and paying GST, PAYG, superannuation contributions, and other related taxes.

• Using cloud-based bookkeeping software

  Bookkeepers are also highly familiar with cloud-based accounting software, such as Quickbooks and XERO. This enables them to access the firm’s financial records from anywhere in the world, making it easier to manage accounts and make timely decisions.

  As now you can see, there is a lot more to being a bookkeeper than meets the eye!

  Bookkeepers play a vital role in keeping businesses organised and running smoothly. If you are thinking about hiring an outsourced bookkeeper or a full-time bookkeeper, consider their benefits and charges carefully to decide what is best for your business.

Why hire a professional bookkeeper for your small business in Australia?

If you're a small business owner, every penny counts. So it's only natural to question whether or not you really need certified bookkeepers on your team. Can't you just do the books yourself? While it's true that you could handle the bookkeeping for your business, it's not recommended. Here's why:

• You're an expert in your field, not in bookkeeping

  You didn't start your own business to become a bookkeeper. Chances are, bookkeeping is not your area of expertise. And that's okay! You don't have to be an expert in everything.

  But when it comes to handling the finances for your business, it's better to leave it to someone who knows what they're doing. A trained professional will be able to keep your books in order and help you make financial decisions that are in line with your long-term goals.

• You don't have the time

  As a small business owner, you already have a lot on your plate. Between running the day-to-day operations of your business and managing your team, there's barely enough time in the day as it is!

  Trying to learn how to do the books on top of everything else is just setting yourself up for failure. Outsourcing this task to a professional will free up some much-needed time and allow you to focus on what you do best.

• It will save your cost in the long run

  Hiring an accountant or bookkeeper may seem like an unnecessary expense at first, but it will actually save you funds in the long run. A good bookkeeper will catch errors and discrepancies that could cost you dearly down the road if they're not caught and corrected early on. In addition, having accurate financial records will make tax time a breeze and help you avoid any costly mistakes or penalties.

• You will have peace of mind

  When you outsource the bookkeeping for your business, it's one less thing that you need to worry about. Knowing that the finances are in good hands will give you more time and energy to focus on what really matters – growing your business

  So if you're on the fence about whether or not to hire a bookkeeper for your business, hopefully, this has helped clear things up! Even if you can't afford the full-time services of an accounting firm, consulting a bookkeeper on a regular basis is worth every penny.

  Let us now help you in understanding the pricing differences between in-house bookkeepers and outsourced bookkeepers in Australia. This comprehensive cost analysis will enable you to make a well-informed decision on which option is most advantageous for your business.

How much do in-house bookkeepers charge in Australia?

If you decide to hire an in-house bookkeeper, the cost will likely depend on their experience and qualifications. Generally, for a full-time bookkeeper in Australia, you can expect to pay a monthly salary of anywhere from $2,500 to $7,000. Of course, this is just a rough estimation and can vary depending on the size of your business and its financial needs.

In addition to their salary, you will also need to factor in payroll taxes and other benefits such as insurance or vacation days that you might offer. Keep in mind that hiring an in-house bookkeeper also means that you'll be responsible for all the costs associated with their training, equipment, and other materials.

How much do outsourced bookkeepers charge in Australia?

Outsourcing bookkeeping services is often the preferred choice for many small businesses to manage their finances. An outsourced bookkeeper provides more flexibility to adjust to changing needs throughout the year, either through a set monthly fee that covers all services or by charging based on hours worked.

The standard monthly cost for an outsourced bookkeeping package can range from $500 to $2,500, depending on the complexity of the services required and the bookkeeper's offerings.

For instance, a bookkeeper who handles only transactions and tax preparation may charge a base fee of $200 per month, with additional costs around tax filing time. On the other hand, a bookkeeper offering entire payroll and HR services would include a set, standard price for as part of a bookkeeping package throughout the year.

At CleanSlate, our outsourcing bookkeeping package starts at $40 per month and offers a range of functions such as day-to-day bookkeeping tasks, bank reconciliation, online BAS lodgements, fixed assets reconciliation, depreciation adjustments, quarterly P&L accounts, dedicated bookkeeping, and more.

Right now, you can half your bookkeeping and taxation expenses for the first 6 months with CleanSlate. Take advantage of this limited-time offer today, before the offer ends on June 31, 2023.

Managing finances is a key factor for small businesses, and outsourcing to bookkeepers can provide the confidence and peace of mind that your business’ finances are being well taken care of.

How much do bookkeepers charge hourly in Australia based on their experience and geographical location?

The average bookkeeper's base hourly rate in Australia is AUD 29.42 but this can vary depending on their experience and geographical location. Here, we will discuss the hourly rates of bookkeepers in Australia based on their experience and geographical, location.

• Pay by geographical location

  The bookkeeper hourly rate across Australia varies greatly, depending on their geographical location. The Australian Capital Territory, Northern Territory, and Tasmania offer some of the most competitive prices at an average rate of $33 per hour; with South Australia and West Australia being the highest with a maximum rate set nationally at $35 hourly. Queensland ranks second highest, with an average bookkeeping rate of $34 per hour. Moreover, the average rate in New South Wales is $35 per hour, while the average bookkeeper rate in Melbourne, Victoria, stands at around $27 per hour.

• Pay by experience

  Experience is another important factor when considering a bookkeeper's hourly rate. Generally speaking, an experienced bookkeepers can command higher rates than their less experienced counterparts. For instance, a bookkeeper can earn an average total compensation package (inclusive of tips, bonuses, and overtime pay) depending on their experience. Check out the list for hourly rates below:

  • Less than one year - $24.76
  • 1-4 years - $27.26.
  • 5-9 years - $29.96.
  • 10-19 years - $31.34
  • 20 years and more - $32

  Engaging the services of a bookkeeper on an hourly basis can be highly advantageous, but the primary concern is determining their hourly rate. Generally, bookkeepers charge an hourly rate ranging from $23.36 to $39.62, depending on factors such as their level of experience, location, and the complexity of the work.

Factors affecting the cost of bookkeeping

Maintaining accurate records of your income and expenses is crucial to the success of your business, but the bookkeeping rates can vary depending on a number of factors. Here are four things that can affect the price you pay for quality bookkeeping services.

• The number of transactions

  One of the main things that will affect the bookkeeper's cost is the number of transactions your business has each month. The more transactions you have, the more time it will take to record them all accurately, and this will usually result in a higher bill from your bookkeeper. However, if you have a relatively simple business with only a few dozen transactions per month, you may be able to get away with a lower-priced bookkeeping package.

• The type of transactions

  The type of transactions your business deals with can also affect the cost of bookkeeping services. If your business primarily deals with cash transactions, for example, there may be less paperwork involved than if you were dealing with inventory or other assets. On the other hand, businesses that deal with complex financial instruments may need to pay a bit more for their bookkeeping services.

• The frequency of Transaction Updates

  Another thing that can affect the cost of bookkeeping services is how often your transactions need to be updated. If you run a seasonal business or have sporadic income throughout the year, your bookkeeper may need to update your records more often than if you had a steady stream of transactions. This can add to the overall cost of their services.

• Add-On responsibilities

  Finally, some bookkeepers offer additional duties beyond simply keeping track of your transactions. These add-on responsibilities can include preparing and filing your taxes, managing payroll, or creating financial statements.

  While these additional services will usually come at an extra cost, they can be well worth it for busy entrepreneurs who don’t have the time (or inclination) to do everything themselves.

  Bookkeeping is an essential part of running a successful business, but it’s important to understand what factors can affect the cost of services before hiring a bookkeeper.

  By considering things like transaction volume, type, and frequency, as well as any add-on services you may need, you can make sure you’re getting the best possible value for your money.

How to save money while hiring a bookkeeper?

Entrepreneurs are always looking for ways to cut costs and save money. When it comes to hiring a bookkeeper, this is definitely possible. Here are some tips on how to save costs while hiring a bookkeeper.

1. Do your research

   There are many bookkeepers out there and not all of them are created equal. Make sure you take the time to research different bookkeepers and find one that fits your needs and budget.

2. Ask around

   Talk to other entrepreneurs and see who they use for their bookkeeping needs. They may be able to recommend someone who is affordable and good at what they do.

3. Negotiate

   Don’t be afraid to negotiate with potential bookkeepers. Many of them will be open to negotiating their rates in order to get your business.

4. Get a package deal

   Many bookkeepers offer package deals that can save you money in the long run. If you think you will need more than just basic bookkeeping services, ask about package deals or discounts.

   Hiring a bookkeeper doesn’t have to be expensive – there are plenty of ways to save costs while still getting the quality service you need and deserve! Do your research, ask around, negotiate, and get a package deal whenever possible – these are all great ways to keep costs down without sacrificing quality or service!

Conclusion

The cost of bookkeeping services will vary depending on the data entry requirements and other accounting tasks involved. It is important to note that the level of expertise of the bookkeeper is also a factor that affects the price.

When looking for a bookkeeper, be sure to request quotes from different providers so you can compare rates. CleanSlate, a leading bookkeeping service providers in Australia offers affordable and accurate bookkeeping services. Request a quote today and see how much you can save on your monthly expenses.