How Much Does Bookkeeping Cost?

It’s important for bookkeeping to be up-to-date. Both large and small businesses benefit from efficient bookkeeping services – regardless of your business size, financial records should be kept properly.

Keeping the financial side of your business in order is key, and a reliable bookkeeping service can help with this. However, there’s often a looming question regarding bookkeeping costs. To learn more about bookkeeping fees in the UK and what influences the price, continue reading.

What is Bookkeeping?

What is bookkeeping? Essentially, bookkeeping is the act of keeping important records regarding a business’s financial affairs. This includes recording daily financial transactions and dealing with customer invoices, to name a few.

Having great financial management in your business is key. Although some smaller businesses do their own basic bookkeeping, business cash flow management or creating financial reports would likely be completed more accurately by a professional bookkeeper.

Expert bookkeepers have the relevant skills to help companies manage the financial side of their business – something that can prove time-consuming and complex in most cases.

With so many different areas of business to focus on, many company owners benefit greatly from the services provided by a reliable bookkeeper. Those working independently also benefit from bookkeeping services, too.

Bookkeeping Duties

Any good bookkeeper will possess relevant skills and understanding to complete their job role to their best standard. While looking to work with a bookkeeper, it’s important to review their experience and how they’ve worked with previous clients.

Bookkeepers should have great organisational skills, solid accounting knowledge, and data entry skills to perform their duties. Typically, bookkeeping duties include:

• Recording accurate financial records
• Recording financial statements
• Handling accounts
• Paying bills for the company
• Handling client invoices
• Bank reconciliation
• Managing inventory
• Updating general ledger
• Ensuring compliance

More advanced bookkeepers might take on additional tasks, such as preparing tax returns or end-of-year reporting

However, some bookkeepers might not offer these services as part of their job role – it’s important to discuss what duties you require to be fulfilled with potential bookkeepers.

Is Bookkeeping the Same as Accounting?

No, bookkeeping is not the same as accounting, although the two are similar. It’s understandable why people get them both confused, but it’s important to understand that they’re different in several ways.

Both bookkeepers and accountants are important for any business, especially the financial side. Bookkeepers help prepare accounts while managing cash flow, and accountants later provide the analysis and complete the taxes.

However, some advanced bookkeepers now offer similar services to those of an accountant, but this isn’t always the case. Most businesses benefit from the services of bookkeepers and accountants.

The bottom line is that they both offer different services – bookkeeping refers to financial record-keeping (typically for a company), whereas accounting professionals are trained tax experts.

Average Bookkeeping Prices

What is the average cost of bookkeeping services in the UK? To work alongside a professional bookkeeper, you’ll likely pay up to £40 an hour. However, this price varies massively depending on numerous factors, from who you choose to work with and what you require, to name a few.

In most cases, bookkeepers charge monthly fees. Paying a fixed monthly fee is often easier than paying by the hour. Like any profession, working with a more well-established bookkeeper will cost you more than working with one with less industry experience.

Put simply, there is no set price for bookkeeping services, as they’ll differ depending on who you decide to work with.

What is important to understand before setting a budget for bookkeeping fees is what key factors could influence the cost. It’s especially important for smaller businesses to better understand the costs associated with bookkeeping, as they might have a lower budget for these types of services.

Factors Influencing Bookkeeping Costs

Several factors influence bookkeeping costs. If you’re a larger company, it might be advisable to work with a more experienced bookkeeper.

Whether you work with a freelance bookkeeper or one who is part of a company, understanding their services and fees is vital. So, what factors could influence bookkeeping costs? Key factors typically include:

• Services they offer
• Experience
• Certifications
• Client size
• Bookkeeping expenses (the type of accounting software they use)

Another key factor that typically influences bookkeeping costs is location. Geographical location plays a vital role in the price of bookkeeping services.

Many people don’t consider this factor – however, where you’re located really does matter. Prices in London will be much higher than in other areas in the country, especially in the north.

Bookkeeping Services at DH Business Support

If you require expert bookkeeping services, look no further than DH Business Support. Well-established in the industry, our experienced bookkeepers can assist you with your bookkeeping needs.

We understand how important it is to ensure the financial side of your business is up-to-date at all times. Our invaluable team of bookkeepers works with a diverse range of clients. We establish how often reconciliations must take place before putting processes in place.

Our services allow you to focus on other important aspects of your business, leaving the financial side for us to deal with. Our bookkeeping services include some of the following duties:

• Regularly logging into your accounting system and reconciling bank transactions
• Setting up an accounts email and arranging for all of your suppliers to send invoices there
• Posting invoices into your accounting system to ensure your payables are up to date
• Up-to-date reporting
• Managing the production and submission of VAT returns
• Dealing with enquiries or investigations from HMRC

Our team are friendly and helpful, remaining on hand at all times to answer any questions regarding your company’s finances.

You can rely on us to provide a service like no other. We aim for great results and use our skills to organise and stay on top of your business’s financial affairs, leaving you more time for other areas of your life.

To learn more about our bookkeeping services, we encourage you to get in touch with a member of our team today. We look forward to hearing about how we can help you.