These increases peak as a bookkeeper moves from entry-level roles into the mid-career stage. If you have the expertise, you could increase your billable rate by offering payroll in addition to bookkeeping services. Instead, she works out a monthly fee for each new client, based on the complexity of their business what is a bookkeeper in terms of payroll and transaction volume. Since this first client was local, Kate met with her a couple of times in person. But she said it’s not necessary; you can onboard clients remotely via Zoom and every accounting software has a built-in permissions to let 3rd party bookkeepers access it.

• She targets an effective rate of $70 an hour, and is able to work from home.
• Meanwhile, at the other end of the spectrum, the highest earners made about $65,541 annually.
• We’ve also gathered advertised salaries from actual job postings to provide insight into what employers of bookkeepers are offering as compensation.
• In-house accounting, on the other hand, gives you peace of mind knowing that someone you know and trust is handling your books and financials.
• Her monthly real estate meetup group was hosting a speed networking night.
• Bookkeepers have a wide variety of skills, so one of the factors you need to consider is what you need them for.

Wage gap by gender, race and education

• In 2019, Strategic Finance magazine published a report detailing a “looming crisis” in the accounting industry.
• And now that you know the answer to the question “How much does a bookkeeper cost?
• Kate decided to go along and hand out Post-it notes — she wasn’t prepared enough to have business cards — introducing herself as a freelance bookkeeper.
• The only drawback of paying a full-time accountant is that you may need to offer them employee benefits.
• Kentucky and West Virginia have the second-lowest at $14.19 per hour and third-lowest at $14.44, respectively.
• “You’re really talking about people’s livelihoods here,” Kate explained.

The highest-paying cities for bookkeepers are Washington, DC, New York, NY, and Boston, MA. In terms of cities, the leading destinations for bookkeepers also rank among the largest metro areas in the United States. Notably, Texas has two cities (Dallas and Houston) in the top five employers of bookkeeping, accounting, and auditing clerks among metro areas. There are three types of certifications for bookkeepers that we recommend.

Types of bookkeeping: Basic vs. full-service accounting

Accountants maintain a wide range of skill sets, including managing spending and budgets, taxes, and analysis of financial statements. To be exceptional at these tasks, accountants must complete years of training and earn special certifications, which their salaries reflect. Depending on the type of accountant, years of experience, and certifications, you could be paying a pretty penny.

What state pays Bookkeepers the most?

What started out as offering advice to people in a financial independence Facebook group, turned into a small concentrated group of people in her own Facebook group. Kate has deliberately built her business around clients that allow her to be flexible with her time. Once in, Kate said their sales team worked to find small businesses in need of bookkeeping services to introduce her to.

Discover how your pay is adjusted for skills, experience, and other factors

Depending on how much work you have and how long you need services, a contracted worker might be a better option. To learn more about the cost of bookkeeping, follow this small business guide. According to the data obtained through Lightcast,™ there were 1,668,891 jobs for bookkeepers in the United States in 2022. If you’re thinking about pursuing a career in the field, you may want to understand how compensation has changed over time for bookkeepers. The chart below provides a snapshot of advertised salaries over the past three years.

At a Glance: Salary & Jobs for Bookkeepers

• Although she’d never been paid to do accounting or bookkeeping in the past, the business appealed to her.
• According to Indeed.com, entry-level bookkeepers make an average of $18.34 per hour.
• 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.
• According to the data obtained through Lightcast,™ there were 1,668,891 jobs for bookkeepers in the United States in 2022.

Employers in areas with higher living costs also tend to pay a premium. However, keep in mind that those higher living costs may cancel out the financial benefits of increased bookkeeping salaries. Industry observers agree that software improvements have made bookkeeping more efficient.

Type of Bookkeeping Services Provided

On top of this, it is also a bookkeeper’s job to keep everything organized. That way, when it is time to file your small business taxes, you can easily access all the data you need. Visit our other pages focused on salary and education for bookkeepers. In this 100% online program, you’ll learn to think critically, communicate effectively and leverage technology in innovative ways.

Annual Salary for 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. It’s also true that experience in higher-paying bookkeeping services (more on this shortly!) affects your pay. In an interesting turn of events, her bookkeeping business spun off another side hustle.

Average bookkeeper salary over time

Outsourcing accounting services allows you to reap the benefits of an accountant without the costs of a full-time employee, such as insurance and other benefits. Chris Kolmar is a co-founder of Zippia and the editor-in-chief of the Zippia career advice blog. So while your city may be slightly different than the state average, these averages give you a rough sense of what to expect for your salary. Based on compensation data that was included in job postings for bookkeepers dating back to September 2019, advertised salaries for bookkeepers have increased 14%. Compare bookkeeper salaries for individual cities or states with the national average. In September 2022, Payscale reported an average annual base salary of about $50,430 for full-charge bookkeepers.