Whether or not you’re self-employed is a major factor in how much you make as a bookkeeper. For W2 workers, the average hourly rates are closer to $20/hour, while self-employed bookkeepers earn closer to $30/hour. Bookkeeper salary levels vary by location, based on factors like local labor market conditions and local living costs. In these cases, employers may increase bookkeeper pay rates to attract the best available candidates.

Types of bookkeeping: Basic vs. full-service accounting

• To better understand bookkeeper pay by state, Zippia has aggregated data across a multitude of channels including the BLS, FLC, and OPM.
• The typical yearly income for a bookkeeper in the USA is $44,850, with the lowest paid starting at $37,068 and the highest earning at $58,695.
• You have several options for handling your bookkeeping, but some important factors can influence the cost.
• Unsurprisingly, the BLS identifies accounting, tax prep, bookkeeping, and payroll services as the industry that employs the most bookkeepers.

If you want to learn about the fastest way to become a self-employed bookkeeper, working flexible hours online for your clients, check out Brilliant Bookkeeper. Bookkeeper salaries can shift quite a bit from state to state and even more from one city to the next. Big cities with higher costs of living tend to pay more, while smaller towns or rural areas might land on the lower end of the scale. In September 2022, Payscale reported an average annual base salary of about $50,430 for full-charge bookkeepers.

Recently added bookkeeper salaries

The BLS reports that accountants and auditors earn a median annual salary what is a bookkeeper of $81,680. That’s over $32,000 more per year than the median wage for bookkeepers of $49,210. Earning a bookkeeping certification can provide a good return on investment. Although most employers don’t require certification for bookkeepers, earning a professional credential can help you qualify for higher-paying jobs. “A Certified Public Bookkeeper (CPB) earns between 10% to 24% more than a bookkeeper without this certification,” according to Kirkham.

Salary by Location

Your value also rises when you’re better at customer service and data accuracy, finding holes, and asking good questions. While accounting requires a bigger upfront investment in education, it also tends to come with a higher salary ceiling. On the other hand, bookkeeping offers a more accessible entry point into the world of finance, along with the flexibility to grow through experience and certifications. Areas with high costs of living, such as New York, California, and Massachusetts, tend to pay more for bookkeeping roles. On the flip income statement side, more affordable regions may come with lower salaries, but that’s often offset by reduced living expenses. A bookkeeper’s salary can depend on a mix of factors, from education and certifications to the kind of company you work for and where you live.

In general, the more specialized your skills are and better service you offer, the more you can earn because you’re becoming an expert in your field. It’s worth mentioning that you have to start working as a bookkeeper before you can apply for certification programs, and as we said, you need at least 2,000 to 3,000 hours to qualify. For one-time jobs—like cleaning up a year’s worth of messy books or preparing financials for a loan application—you might charge a set project Legal E-Billing fee. Choosing between full-time and part-time positions depends on individual preferences, financial needs, and career goals. If you’re seeking stability and benefits, full-time might be the better fit.

What Can Affect Full Charge Bookkeeper’s Salaries?

They need help handling debt, managing cash flow, and forecasting growth in an unpredictable economy. In terms of average bookkeeper pay rates, BLS data from May 2021 identifies the District of Columbia, Massachusetts, Washington, California, and Connecticut as the top-paying areas. Regarding overall job numbers, the BLS ranks California, Texas, Florida, New York, and Pennsylvania as the states with the highest employment levels.

Highest Paying States

But before you do, let’s look at some questions you should ask yourself before making the decision. For example, a Certified Public Accountant (CPA) is paid more than a traditional accountant due to having to meet higher education and licensing requirements depending on their state. An in-house bookkeeper can be beneficial if you need consistent, hands-on support to manage your finances. They only work for you, so over time, they’ll gain a deeper understanding of the ins and outs of your financial operations. Plus, you can get real-time updates and quick responses if any issues arise. To learn more about the cost of bookkeeping, follow this small business guide.

Bookkeeper Jobs

You may not know how long you’ll need someone, but comparing the monthly bookkeeping cost of a contractor versus an in-house employee is the best way to see this angle side by side. Depending on how much work you have and how long you need services, a contracted worker might be a better option. While these exact figures can change over time, the cost comparisons of covering your bookkeeping and accounting needs can vary greatly depending on the type of individual you hire.

• While online providers may offer less personalized service compared to traditional firms, they can be a more affordable option for small businesses and startups with limited budgets.
• Accountants typically need at least a bachelor’s degree in accounting or finance.
• Additionally, a bookkeeper may work with an accountant, who is responsible for more advanced tasks such as assessing the health of a business or generating financial statements.
• Getting five clients will approximately bring you $15,000, ten clients $30,000, twenty clients is going to bring in $60,000 a year.
• These services are ideal if your business needs reliable help but wants to keep things simple and affordable.
• QuickBooks is designed to streamline your workflow, save time, and help you stay on top of your finances.

What It Costs to Contract with a Traditional Bookkeeping Firm

When deciding if you should do your bookkeeping yourself or hire outside help, the decision is entirely up to you. For example, if you have the time to handle bookkeeping yourself, you might continue to do so to save money. On the other hand, if you’d like to use the time you spend bookkeeping focusing on other aspects of your business, then the cost of a bookkeeper may be worth it. Bringing someone on as an in-house full-time employee requires extra costs on your end, such as benefits and health insurance, whereas contractors are not entitled to these perks.

Are You Ready To Learn Bookkeeping Online?

Full charge bookkeepers are responsible for the whole accounting cycle and finance affairs of the employers. Meanwhile, standard bookkeepers are limited to basic data entry and maintenance of the records. Meanwhile, accountants give strategic consultations and analyses of financial statements. They handle taxes, identify opportunities and risks, and interpret data for optimum company efficiency.