If you’re a small business owner in Texas, you’ve likely asked yourself: “how much does a bookkeeper cost for a small business?” It’s a crucial question, but the answer isn’t a simple price tag you can look up.
As a Houston-based CPA firm, we help business owners answer this question every day. The right answer depends entirely on your finances and specific needs. The bookkeeper cost is a reflection of your company’s complexity and the level of service you require to get clean, reliable financials.
Here we’ll take a look at the factors that influence the price, explain the different billing models, and show you how to find a solution that is truly cost-effective for your business.
Factors That Determine Your Bookkeeping Costs
Before you can get an accurate price, it’s important to understand the key variables that firms and professionals consider.
1. Transaction Volume and Complexity
This is the single biggest driver of cost. A business with 50 transactions a month across two bank accounts is very different from a business with 500 transactions across multiple bank accounts, credit cards, and different payment processors. The more transactions there are to categorize and reconcile, the more time is required.
2. The State of Your Current Books
Are your books clean, reconciled, and up to date? Or are they several months (or even years) behind? A significant portion of the initial cost for many new clients is a one-time cleanup and catch-up project. This is necessary to get your historical records in order before any ongoing monthly work can begin.
3. The Type of Service You Need
Small business bookkeeping isn’t a single activity. The scope of work can vary significantly.
- Basic Bookkeeping: This is the foundation. It includes categorizing all of your transactions day-to-day, reconciling your bank and credit card accounts, and generating your standard monthly financial reports (like the Profit & Loss and Balance Sheet).
- Full-Charge Bookkeeping: This is a more involved type of service. It can include managing your accounts payable (entering and paying your bills) and your accounts receivable (creating and sending invoices to customers and following up on payments).
Hourly vs. Fixed Fee Billing Model
Bookkeepers and firms typically use one of two primary billing models. Understanding them will help you know what to expect.
| Billing Model | How It Works | Best For |
| Hourly Rate | You pay for the specific amount of time the bookkeeper spends on your books. The hourly rate in Texas can vary widely. | One-time cleanup projects or businesses with very inconsistent transaction volumes. |
| Fixed Monthly Fee | You pay a predictable monthly fee for an agreed-upon scope of work. | Most businesses that want predictable costs and a consistent partner to manage their finances. |
While an hourly rate offers flexibility, most business owners prefer a fixed monthly fee. It makes budgeting easier and is often the most cost effective approach for long-term financial management.
A Smart Alternative: Outsourcing Bookkeeping Services
Many Texas business owners are discovering that outsourcing bookkeeping services to a professional firm offers a powerful alternative to hiring a single freelancer or a part-time employee.
Why Consider Outsourcing?
Instead of relying on just one person, you get a team’s expertise. A good firm will often have a bookkeeper handling the daily tasks and a senior accountant or controller who reviews the work for accuracy. This built-in oversight is a huge advantage.
Outsourcing also eliminates the burdens of being an employer, you don’t have to worry about hiring, training, managing, or paying payroll taxes for an employee. Plus, professional firms provide and manage the technology stack, saving you money on expensive accounting software.
How It May Help Houston Contractors
We recently began working with a Houston-area contractor who needed bookkeeping services to keep financial records in order. He was a classic small business owner, an expert in his trade but completely overwhelmed by the paperwork. His books were six months behind, and he had no clear idea of his profitability on different jobs.
Our team started with a one-time cleanup project to get his books current. Then, we transitioned him to a fixed monthly fee for ongoing bookkeeping. Within two months, he had accurate, timely financial reports for the first time. This clarity helped him adjust his pricing and focus on his most profitable services. The peace of mind and strategic insight he gained was a game-changer for his business.
So, How Much Does a Bookkeeper Cost for a Small Business?
It truly depends on the volume and complexity of your transactions and the level of service you need. The key is to find a solution that provides consistent, accurate financials that you can use to make smart decisions.
Clean books aren’t an expense; they’re the foundation for sustainable growth.
Ready to gain financial clarity? If you’re ready to get bookkeeping off your plate and free up your time, the CPA-led team at Dabney Tax & Accounting Services can help. Contact us to discuss your small business bookkeeping needs and get a clear picture of how we can support you.
FAQs About Bookkeeper Cost
What’s the difference between a bookkeeper and an accountant or CPA?
A bookkeeper can help with the day-to-day recording of financial transactions, the “keeping of the books.” An accountant or CPA takes that data and uses it for higher-level analysis, financial statement preparation, and tax planning. While their roles can overlap, a CPA has advanced licensing and can provide strategic tax advice that a bookkeeper typically cannot.
At what point should a small business owner hire a bookkeeper?
A good rule of thumb is to hire a bookkeeper when you find yourself spending more time on your books than on revenue-generating activities, or when you no longer feel confident in the accuracy of your own financial records. Getting help early is often more cost-effective than paying for a large cleanup project later.
What does a bookkeeper actually do in small business bookkeeping?
The core type of service includes recording income and expenses, categorizing transactions, reconciling bank and credit card accounts, and generating key financial reports like the Profit & Loss and Balance Sheet. Some bookkeepers also handle accounts payable and receivable.
Why outsource bookkeeping services to a firm versus hiring a freelancer?
While a freelancer can be a good option, outsourcing bookkeeping services to a firm provides a team-based approach with built-in oversight and review, ensuring greater accuracy. A firm also offers uninterrupted service (no sick days or vacations) and can often provide a wider range of services, including tax and advisory, as your business grows.
