How Much Does Bookkeeping Cost for a Small Business in 2026?

Most small businesses should expect to pay about $300 or more per month for ongoing bookkeeping, and online bookkeeping packages generally run from roughly $200 to $700+ per month, according to NerdWallet's bookkeeping pricing guide (updated March 2026). What you actually pay depends mostly on the option you choose and how much activity runs through your books each month.

The gap between options is wide. Accounting software on its own starts at $27 per month for Xero's Early plan, while a full-time in-house bookkeeper earns a median wage of $50,670 a year before benefits and payroll taxes. Freelancers, online bookkeeping services, and local firms sit in between, each with a different pricing model.

This guide compares five options, using published prices where they exist, explains what pushes a quote up or down, and shows how to build a realistic budget. Every third-party figure links to its source so you can check it yourself. If you're still deciding what ongoing bookkeeping should cover, see what our monthly bookkeeping services include.

Key Takeaways

• Budget about $300+ per month for outsourced bookkeeping; online packages typically run $200 to $700+ per month (NerdWallet, 2026).
• DIY accounting software costs $27 to $340 per month (Xero, QuickBooks Online), but you supply the time and the accuracy.
• A full-time bookkeeper costs about $4,223 per month in median wages alone (BLS, May 2025).
• Monthly expense volume, accrual accounting, update frequency, and catch-up work drive most of the price difference between quotes.
• Compare providers on written quotes tied to the same scope, not on headline starting prices.

How much does bookkeeping cost for each option?

Your choice of option sets the price range before anything else does. Software is the cheapest line item, an employee is the most expensive, and outsourced help (freelancer, online service, or local firm) usually lands in the low hundreds per month. Outsourced bookkeeping is a service in which an outside bookkeeper or firm records, categorizes, and reconciles your transactions for a recurring fee. The table below summarizes published figures.

DIY accounting software

Software is the lowest cash cost, but it isn't free bookkeeping. You still categorize every transaction, reconcile bank and card accounts, and catch your own mistakes. Xero's U.S. plans run $27, $59, and $97 per month, and QuickBooks Online lists Simple Start at $38, Essentials at $85, Plus at $140, and Advanced at $340 per month, with promotional discounts sometimes available. The hidden cost is your time and the cleanup bill if the books drift.

Freelance bookkeepers

Freelancers usually bill by the hour. NerdWallet reports an average rate of $43 per hour on Upwork. As an illustration, a business needing five hours a month would pay about $215 at that rate. The trade-off is consistency: quality, availability, and backup coverage depend on one person.

In-house bookkeeper

Hiring an employee makes sense when the workload fills real hours every week. The Bureau of Labor Statistics puts the median pay for bookkeeping, accounting, and auditing clerks at $50,670 per year, or $24.36 per hour, as of May 2025. That works out to about $4,223 a month in wages alone, before health benefits, payroll taxes, software seats, and the time you spend supervising.

Online bookkeeping services

Online services charge a flat monthly fee, tiered by volume. That makes costs predictable, but each tier has limits, and work outside the standard package (catch-up, accrual adjustments, extra accounts) is often priced separately. Published plans are compared in the next section.

Local bookkeeping firms

Local firms typically quote after reviewing your books, so there's no dependable national price list. Ask for a written scope that lists the accounts, reporting frequency, and deliverables covered, so you can compare it line by line with online services. Accounting and CPA firms buying bookkeeping for their own clients pay on a different basis, usually per client per month, which we cover in our guide to white-label bookkeeping for CPA firms.

Published bookkeeping service and software prices

Published plans show how much the same "monthly bookkeeping" label can vary. Online services tier their prices by monthly expenses or update frequency, while software plans tier by features and users.

Online bookkeeping service plans

Accounting software plans

Software prices reflect list prices at the time of writing; Intuit and Xero both run promotions, so check the current page before you budget. If you outsource, confirm whether the provider's fee includes a software subscription or whether you pay for it separately.

What drives bookkeeping cost for a small business?

Volume, accounting method, frequency, and backlog explain most of the difference between two quotes. Two businesses with similar revenue can receive very different prices if one has three times as many transactions or needs accrual-basis statements.

Monthly expense and transaction volume

More activity means more transactions to categorize and reconcile. Xendoo's tiers make this explicit: Essential covers up to $50K in monthly expenses, Growth up to $75K, and Scale up to $125K, with prices rising from $395 to $995 per month on monthly billing. Count your bank accounts, credit cards, and payment processors too, since each one adds reconciliation work.

Cash vs. accrual accounting

Accrual accounting takes more work than cash-basis bookkeeping because it tracks receivables, payables, and adjustments that don't match the timing of cash movements. Xendoo, for example, moves full accrual work to a custom quote rather than a standard tier. If lenders, investors, or your tax preparer need accrual statements, expect a higher fee.

How often your books are updated

Faster updates cost more. Bookkeeper360 charges from $399 per month for monthly updates and from $599 per month for weekly updates. Monthly is enough for many small businesses; weekly helps when cash is tight or you make frequent decisions from your numbers. Our monthly bookkeeping checklist shows what a solid monthly close should include.

Catch-up and cleanup work

Behind-on-the-books work is almost always billed separately from ongoing service. Xendoo lists catch-up from $295 per month of records, and Bookkeeper360 prices onboarding and prior bookkeeping from $1,000 per project. A year of missing records can cost more than several months of ongoing service, so it pays to fix a backlog early. See how to catch up on bookkeeping for the steps involved.

Payroll and other add-ons

Payroll processing, sales tax filings, bill pay, and custom reporting are common add-ons that may or may not sit inside a base package. Published add-on prices vary by provider, so ask each one to list what's included and what costs extra before you compare monthly fees.

How to estimate your bookkeeping budget

A realistic budget starts with your own numbers, not a national average. Work through these steps before requesting quotes:

1. Total your monthly expenses and count transactions across all bank, card, and payment accounts. This places you in a provider's tier.
2. Decide on cash or accrual. Ask your tax preparer or lender what they need.
3. Choose an update frequency. Monthly suits most small businesses; weekly costs more.
4. Check for a backlog. Any months not reconciled will be priced as separate cleanup work.
5. List add-ons such as payroll, sales tax, or management reports.
6. Add software costs if the provider doesn't include them.

Then compare like with like. A $249 quote and a $399 quote aren't comparable unless they cover the same accounts, frequency, and deliverables.

How Asquaire prices bookkeeping

Asquaire Financials publishes starting prices so you can compare them against the figures above. The firm was founded by ACCA-qualified accountants with Big Four experience and is based in North Brunswick, New Jersey. Asquaire is not a CPA firm.

Our $249 starting price sits below the published entry prices of the two online services listed earlier ($395 for Xendoo Essential on monthly billing and $399 for Bookkeeper360 Monthly), but scopes differ, so compare written quotes that cover the same accounts and deliverables. Your exact fee depends on transaction volume, the number of accounts, accounting method, and reporting needs, and it is agreed in writing based on scope before any work begins. You can review cleanup and catch-up services, monthly management reporting, and the full service and pricing overview.

What does tax preparation cost compared with bookkeeping?

Tax preparation is usually billed separately from bookkeeping, so budget for both. Return fees vary with the form (an individual Form 1040, a Form 1065 partnership return or a Form 1120-S S corporation return), the number of schedules and states, and how organized your records are. Clean, reconciled books won't eliminate the tax fee, but they make the preparer's job faster and reduce the chance of extra charges for sorting records. Asquaire's tax preparation starts from $199 for an individual return and $650 for a business return.

Frequently asked questions

How much does bookkeeping cost per month?

Most small businesses should plan for about $300 or more per month, and online bookkeeping packages typically run $200 to $700+ per month, according to NerdWallet. Low-volume businesses may pay less; businesses with high expenses, many accounts, or accrual needs pay more.

What are typical bookkeeper rates per hour?

Freelance bookkeepers on Upwork average $43 per hour, per NerdWallet. Employed bookkeeping clerks earn a median of $24.36 per hour (BLS, May 2025), but an employer also pays benefits and payroll taxes on top of that wage.

How much should a small business budget for bookkeeping?

Start with your monthly expense volume, accounting method, and update frequency, then add any catch-up work and software. For many small businesses that lands in the few-hundred-dollars-per-month range for outsourced help. Get written quotes for the same scope so the numbers are comparable.

Is it cheaper to do bookkeeping yourself or hire someone?

DIY is cheaper in cash, with software running from $27 per month for Xero Early to $340 per month for QuickBooks Online Advanced, but it costs your time and risks errors that later require paid cleanup. Outsourcing usually makes sense once bookkeeping takes several hours a month or your books start falling behind.

Does bookkeeping include tax preparation?

Usually not. Bookkeeping keeps your records accurate through the year, while tax preparation is a separate engagement with its own fee, usually priced by return type and complexity.

The bottom line on bookkeeping costs

Bookkeeping for a small business can cost anywhere from a $27 software subscription to more than $4,000 a month for a full-time employee, with most outsourced options landing in the hundreds. The right choice depends on your transaction volume, accounting method, how current your books are, and how much of your own time you want to spend. Compare written quotes for the same scope rather than headline prices. If you'd like a scoped quote for your business, contact Asquaire for a bookkeeping estimate.