Entrepreneurs often wonder how much money a bookkeeper can make. The answer to that question depends on a number of factors; including the level of experience the bookkeeper brings to the table, as well as the size and complexity of the business. Generally speaking, though, bookkeepers can expect to earn a healthy salary.
Bookkeeper Pay Structures
There are a few different ways that bookkeepers can be paid. The most common is an hourly wage, but some bookkeepers may also be salaried employees. In addition, some businesses may choose to contract out their bookkeeping needs to an outside firm, in which case the bookkeepers would be paid by the project or on a monthly retainer.
Hourly Wages
Hourly wages for bookkeepers can vary widely, depending on the bookkeeper’s experience and the size of the business. In general, though, bookkeepers can expect to earn between $15 and $30 per hour.
Salaried Employees
Some bookkeepers may be salaried employees, which means they receive a set salary each year, regardless of how many hours they work. Salaries for bookkeepers can also vary widely, depending on the bookkeeper’s experience and the size of the business. In general, though, bookkeepers can expect to earn between $40,000 and $73,000 per year.
Contractors
If a business contracts out its bookkeeping needs to an outside firm, the bookkeepers working on the project will be paid by the project. Project-based pay can vary widely, depending on the scope of the project and the experience of the bookkeepers. In general, though, businesses can expect to pay between $500 and $5,000 for a typical bookkeeping project.
Retainer Services
Some bookkeeping firms may charge a retainer for their services. Retainer pricing is set up for a long-term relationship, typically for at least a year. A set amount is then paid monthly, regardless of the amount of bookkeeping needed during the month. This allows both the client and the bookkeeper the advantage in knowing the work will be done and the set amount will be paid regularly. In general, a client will pay between $2,000 and $4,000 per month on a retainer basis, particularly if the client has a large business with heavy bookkeeping needs.
Conclusion
So, how much does a bookkeeper make? This answer can vary depending on a number of factors, but in general, they can expect to earn a healthy salary. Hourly wages can range from $15 to $30 per hour, while salaried employees generally earn between $40,000 and $73,000 annually. Some clients may choose to contract out their bookkeeping needs, in which case the bookkeepers would be paid by the project. Project-based pay can vary widely, but businesses can typically expect to pay between $500 and $5,000 for a typical bookkeeping project. Clients may also pay for bookkeeping services via a retainer for a set term, typically one year. The bookkeepers are paid the same amount every month, whether or not bookkeeping services are needed. This gives the client the advantage of knowing the bookkeeping services will always be available and offers the bookkeeping service the advantage of a regularly-scheduled payment.