How much should you budget for bookkeeping? In the UK, you can generally expect to pay somewhere between £25 to £45 per hour for a bookkeeper. If you prefer a fixed monthly fee, prices often start around £100 and can go to £500 or more.
Ultimately, the final figure on your quote comes down to the size of your business, how many transactions you process each month, and whether you need complex services like VAT returns or payroll.
Getting a Feel for UK Bookkeeping Costs
Before we dig into the details that shape a bookkeeper's quote, it's useful to get a clear idea of the typical financial baseline. Thinking about bookkeeping costs isn't just a budgeting exercise; it’s about recognising this service as a fundamental investment in your company’s financial health and future.
Try not to view professional bookkeeping as just another business expense. Instead, see it as the bedrock that supports sustainable growth. It frees you from the numbers so you can focus on what you’re brilliant at—running and growing your business—knowing an expert is keeping your financial records accurate and compliant. That kind of peace of mind is priceless.
Typical UK Bookkeeping Costs at a Glance
To give you a quick overview, the table below summarises the average costs you can expect. These figures are a snapshot to help you see where your business might fit in the UK market.
| Business Type | Hourly Rate (Approx.) | Monthly Fixed Fee (Approx.) | Best For |
|---|---|---|---|
| Sole Trader / Freelancer | £25 – £35 | £100 – £250 | Basic income and expense tracking for Self Assessment. |
| Small Limited Company | £30 – £40 | £250 – £500 | Businesses needing VAT returns, payroll for a few staff, and Companies House compliance. |
| Growing SME | £35 – £45+ | £500+ | Companies requiring detailed management reports, cash flow forecasting, and more complex payroll. |
Think of these ranges as a solid starting point. Your final quote will always be tailored to the unique needs and scale of your operations, which is exactly why a personalised chat is so important.
It's interesting to see how pricing for professional services works across different sectors. For instance, looking at how IT support costs are structured can offer a useful comparison, even though it's a completely different industry. It highlights the value placed on expertise and ongoing management.
Whether you're a sole trader getting ready for tax season or a limited company planning its next move, knowing these general figures is the first step. For a broader perspective, you might find our guide on https://stewartaccounting.co.uk/accountant-costs-small-business/ helpful in building a complete picture of your financial management investment. Now, let’s break down exactly what goes into determining these costs.
Decoding Bookkeeping Pricing Models
When you're trying to figure out bookkeeping costs, the final number is only half the story. The other, arguably more important, half is how that number is calculated. Bookkeepers use a few different pricing models, and each has its own rhythm and set of benefits.
Choosing the right one is a bit like picking a mobile phone plan. Are you better off with a flexible 'Pay As You Go' option for occasional tasks, or does a predictable, all-inclusive monthly contract give you the peace of mind you need? Let's break down the four most common models to see which one feels right for your business.
Hourly Rates: The Pay-As-You-Go Approach
The most traditional model is the hourly rate. It's simple: you pay for the time a bookkeeper spends on your accounts. In the UK, this usually falls somewhere between £25 to £45 per hour, shifting based on their experience and how complex the work is.
This approach is perfect for one-off projects or if your needs are irregular. For instance, you might hire someone on an hourly basis to:
- Tackle a backlog: Get your records organised and up-to-date after they've been neglected for a few months.
- Set up new software: Have an expert correctly configure your Xero or QuickBooks account from the get-go.
- Handle quarterly reviews: A quick check-in each quarter to make sure everything is spot-on before your VAT return is filed.
The biggest plus is its flexibility—you only pay for what you use. The flip side, however, is a lack of predictability. If a task takes longer than you thought, the final bill can be a nasty surprise, making it tricky to budget for ongoing support.
Fixed Monthly Fees: For Predictable Budgeting
For businesses with a steady workload, a fixed monthly fee is often the way to go. After a quick look at your transaction volume and what you need (like payroll or VAT returns), you agree on one set price per month. Simple as that.
This model turns your bookkeeping from a fluctuating cost into a predictable operating expense, which is a game-changer for managing your cash flow. You know exactly what’s going out of the bank each month, with no hidden costs.
A fixed monthly fee gives you peace of mind. It means you can pick up the phone and ask questions without worrying about the meter running, which builds a much better, more collaborative relationship with your bookkeeper.
This pricing structure is ideal for limited companies and growing businesses that need continuous support, from monthly bank reconciliations to management reports and all the compliance in between.
Per-Transaction Pricing: For A Fluctuating Workload
A less common, but still very useful, model is per-transaction pricing. Here, the cost is tied directly to your financial activity. For example, a bookkeeper might charge a small fee for every sales invoice you create or every expense receipt they process.
This can work brilliantly for businesses with a seasonal or unpredictable sales cycle. Think of an e-commerce store that’s flat-out at Christmas but much quieter in the summer.
Your costs scale up and down with your business activity, which is fantastic for your budget during the slow periods. The challenge is that it can get expensive during your busiest times, and forecasting your exact monthly cost can still be a bit of a moving target.
Customised Service Packages: The All-Inclusive Plan
Finally, many firms now offer customised packages that bundle several services into a single, comprehensive monthly fee. This is the "unlimited everything" mobile plan of the bookkeeping world.
A typical package might wrap up:
- Core bookkeeping (recording transactions and reconciling the bank).
- Preparing and submitting your quarterly VAT returns.
- Running monthly payroll for your team.
- Generating regular management reports to track performance.
- Including software subscriptions for tools like Xero or Dext.
This all-in-one approach is perfect for business owners who want a completely hands-off solution for their finances. It simplifies your billing and guarantees that all your compliance deadlines are met by a professional who knows your business. By bundling services, you often get a much better price than paying for everything separately, leaving you free to focus on what you do best—running your business.
So, What Actually Goes Into Your Final Quote?
Ever wondered why you can’t just find a single, fixed price for bookkeeping on a website? It’s because every business is different. Think of it like getting a suit made – an off-the-rack one has a set price, but a tailored one depends on the fabric, the cut, and how much work is needed. Your bookkeeping quote is exactly the same; it's shaped by the unique size and complexity of your company.
A good bookkeeper needs to get under the bonnet of your business first. They’ll look at your financial activity to figure out the right level of support you need, making sure you’re not paying for services you’ll never use. Let's break down the main things that will influence the cost.
How Many Transactions You Have
This is the big one. The sheer volume of your financial activity is the single largest factor in determining your bookkeeping bill. A freelance designer sending out five invoices a month is a world away from an online shop that’s processing hundreds of orders every day.
Every sale, purchase, and payment needs to be recorded, categorised, and reconciled. More transactions simply mean more work, forming the baseline for how much time your bookkeeper will need to spend each month.
The Complexity of Your Business
It's not just about the number of transactions; their nature matters, too. The straightforward books of a sole trader are much simpler to manage than a limited company with multiple income streams and international clients.
What makes a business more complex? Things like:
- Multiple Bank Accounts and Credit Cards: Each account has to be reconciled separately, which takes more time.
- Foreign Currency: Dealing with different currencies adds another layer of work, as exchange rates constantly fluctuate and need to be accounted for.
- Different Departments or Locations: If you need to track your finances by department, project, or shop location, it requires more detailed and segmented reporting.
The level of detail you need in your financial reports, like a comprehensive example of a cash flow statement, also plays a part. A more intricate setup naturally requires more expertise and time to get right.
Extra Services Like Payroll and VAT Returns
Your core bookkeeping covers the day-to-day recording of your finances. But most businesses need a few other things to stay on the right side of HMRC, and these are usually quoted as separate, add-on services.
Common extras include:
- VAT Returns: Preparing and filing your VAT returns through Making Tax Digital (MTD) is a specific, crucial task.
- Payroll: If you have staff, you'll need someone to manage salaries, PAYE, National Insurance, and pension contributions.
- Construction Industry Scheme (CIS): For businesses in the construction trade, managing CIS deductions and filings is a legal must.
A recent UK industry report gives us a solid benchmark, showing the median hourly rate for core bookkeeping is £33.36. However, that figure usually doesn't include these specialised services. The same report also found that 32.8% of bookkeepers priced their standard monthly services between £101 and £200, which shows just how accessible professional help can be for small businesses.
Getting Your Software and Books in Order
If you're starting from scratch, there's often a one-off fee to get everything set up properly. If you’re moving over to cloud accounting software like Xero or QuickBooks, your bookkeeper will need to configure the system, link up your bank accounts, and set up your chart of accounts. It's a small investment upfront that pays dividends in efficiency later.
The biggest, and most common, surprise cost is the "cleanup" fee. If your books are months behind or in a complete muddle, your bookkeeper has to put in a lot of extra hours to untangle everything before they can even start on the routine monthly work.
This initial deep-clean is essential. It ensures every figure is accurate and gives you a solid foundation for making smart business decisions. While it adds to the initial invoice, getting your books clean and organised is the first step toward proper financial control.
Real-World Cost Examples for UK Businesses
Theory is great, but what do these numbers actually look like in practice? To give you a much clearer idea of what your investment might be, let's walk through four common scenarios based on real UK businesses.
These examples will help you connect the dots between concepts like "transaction volume" and "complexity" and see how they translate into a tangible monthly cost. See which profile sounds most like your business to get a realistic feel for the budget you might need.
Think of it like three main dials that we turn to arrive at your final quote: the sheer volume of your transactions, the complexity of your business, and any extra services you need.
As the visual shows, while the number of transactions sets the foundation, things like intricate project accounting or compliance work like VAT and payroll really add to the scope of the job.
The following table provides some illustrative cost examples to help you benchmark what you might expect to pay based on your business size and needs.
Sample Bookkeeping Quotes for Different Business Scenarios
| Business Profile | Typical Monthly Services | Estimated Monthly Cost |
|---|---|---|
| Freelance Sole Trader | Bank reconciliation & expense categorisation for Self Assessment. | £100 – £180 |
| Small Limited Company | Monthly bookkeeping, quarterly VAT returns, and payroll for 2 employees. | £250 – £450 |
| Growing SME | Full bookkeeping, VAT, payroll (10 staff), CIS returns & management reports. | £500 – £850+ |
| Property Landlord | Tracking income and expenses for a 4-property portfolio. | £120 – £220 |
These are, of course, just ballpark figures. The best way to know for sure is to get a quote based on your specific circumstances. Let's break down what goes into those numbers.
Scenario 1: The Freelance Sole Trader
First up, a freelance graphic designer. They’re a sole trader working from a home office, and their finances are pretty straightforward.
- Business Profile: This freelancer sends out 20-30 sales invoices and has about 40-50 business expenses a month. They have one business bank account and aren't registered for VAT.
- Services Needed: The main goal here is simple: clean, organised records ready for the annual Self Assessment tax return. They need someone to sort their income and expenses, reconcile their bank account quarterly, and give them the final numbers to file.
- Estimated Monthly Cost: A fixed monthly fee for this level of support would usually land somewhere between £100 – £180.
That predictable cost means no more mad scramble when the tax deadline looms. It’s a small price to pay for complete peace of mind, knowing every allowable expense has been claimed correctly.
Scenario 2: The Small Limited Company
Next, imagine a small e-commerce business that's doing well. It’s a limited company, registered for VAT, and has a couple of part-timers helping with orders.
- Business Profile: As a limited company, they're processing 100-150 online sales and dealing with around 75 supplier invoices and other expenses each month. They use tools like Shopify and have a separate business bank account and credit card.
- Services Needed: This business needs more than just basic record-keeping. They require monthly bank and credit card reconciliations, quarterly VAT returns filed under Making Tax Digital (MTD), and monthly payroll for their two employees.
- Estimated Monthly Cost: A complete package covering all this would likely be in the £250 – £450 per month range.
This investment handles their core legal duties (VAT, PAYE, Companies House), helping them avoid hefty penalties and ensuring their financial data is always reliable.
For a small limited company, this isn't just an expense; it's a strategic partnership. Accurate, timely bookkeeping provides the financial visibility needed to manage stock, track profit margins, and make smart growth decisions.
Scenario 3: The Growing SME
Our third example is an established engineering firm that’s scaling up. They have a growing team, manage complex projects, and their leadership needs detailed financial insights to steer the ship.
- Business Profile: This is a growing SME with several income streams, clocking in around 250-300 transactions a month, and running payroll for 10 employees. They also operate within the Construction Industry Scheme (CIS).
- Services Needed: Their requirements are a step up. On top of core bookkeeping, VAT returns, and payroll, they need monthly management reports. These include a Profit & Loss statement, Balance Sheet, and cash flow analysis to see how they're performing against their budget. Filing CIS returns is also critical.
- Estimated Monthly Cost: For this level of ongoing financial management, you'd be looking at a monthly fee of around £500 – £850+.
This figure reflects the move from simple compliance to an active financial partnership. The reports we produce give the directors the confidence to make big decisions about hiring, investment, and expansion.
Scenario 4: The Property Landlord
Finally, let's not forget the property landlord. They aren't running a typical company, but they still have a business that needs meticulous financial tracking to stay profitable and tax-efficient.
- Business Profile: A landlord with a portfolio of four rental properties. They’re juggling rental income, letting agent fees, mortgage payments, maintenance bills, and insurance for each property.
- Services Needed: The main job is to track the income and expenses for each property individually. This shows them which assets are performing best and provides all the figures needed for the property pages of their Self Assessment tax return.
- Estimated Monthly Cost: A bookkeeper would typically charge around £120 – £220 per month to manage the finances for a small portfolio like this.
This service turns a shoebox full of receipts into a clear, organised financial record. It ensures every property-related expense is properly recorded, maximising tax deductions and giving them a crystal-clear view of their portfolio's health.
In-House vs Outsourced Bookkeeping
When you're figuring out your bookkeeping budget, you’ll quickly hit a major crossroads: do you hire someone to join your team, or do you partner with an outside firm? On the surface, it might seem like a simple choice between paying a salary and paying a monthly fee, but the reality is a lot more nuanced.
The real cost of an in-house bookkeeper goes far beyond what you see on their payslip. To make a smart comparison, you need to look at all the associated expenses that come with having another employee on the books.
The True Cost of an In-House Bookkeeper
Hiring an employee comes with a heap of overheads. Once you start adding up these "hidden" costs, the financial commitment often shoots up much higher than you first thought.
Let's pull back the curtain on what it really costs to have an in-house bookkeeper:
- Employer’s National Insurance: This is a big one. You’re legally required to pay NI contributions for your staff, adding a hefty percentage on top of their gross salary.
- Pension Contributions: Thanks to auto-enrolment, you'll also be contributing to their pension scheme, another direct hit to your bottom line.
- Holiday and Sick Pay: You’re paying for their time off, whether they're on a beach or at home unwell. That's time you pay for with no direct output for the business.
- Software Licences: You’ll be footing the bill for accounting software like Xero or QuickBooks, not to mention any other tools they need to do their job properly.
- Training and Development: Regulations change. Your bookkeeper will need ongoing training to stay up-to-date, and that’s another cost for the business.
When you add it all up, a bookkeeper on what seems like a reasonable salary can easily cost your business over £40,000 per year. For most small and medium-sized businesses, that’s a huge outlay for a role that might not even require 40 hours of work every single week.
The Strategic Advantage of Outsourcing
Outsourcing flips the script entirely. Instead of paying for an employee's time, you're paying for a specific result: perfectly managed financial records. This isn't just about saving money; it’s a genuine strategic advantage.
With an outsourced partner, you agree on a fixed monthly fee for the exact services you need. Suddenly, your bookkeeping isn't a large, fixed overhead but a predictable and scalable operational cost. You get to skip all the extra employment expenses and just pay for the expertise you need to get the job done right.
Outsourcing gives you access to a whole team of specialists for less than what it costs to hire a single in-house employee. You tap into a deep well of knowledge and experience without the HR headaches and financial burdens.
This approach is incredibly flexible. As your business grows and your transaction volume climbs, you can simply scale up your service package. On the flip side, if things get quiet, you're not stuck paying a full-time salary for a part-time workload. This agility is precisely why outsourcing is often the smarter move. To dig deeper into this, check out our article on the 7 key advantages of outsourcing your bookkeeping.
The market reflects this trend. In the UK, typical outsourced bookkeeping for small businesses ranges from £100 to over £500 per month, scaling with things like transaction volume and whether you need VAT or payroll support. And this is critical: with a shocking 82% of small business failures tied to poor cash flow management, outsourcing offers an affordable way to get professional oversight and avoid becoming just another statistic.
Getting Your Personalised Bookkeeping Quote
You’ve now got a solid map of the bookkeeping world, from how we price our services to the specific things that nudge the cost up or down. The next step is to swap those general figures for a real number that fits your business like a glove. This is where we leave guesswork behind and start planning properly.
Think of professional bookkeeping as an investment, not just another bill to pay. That modest monthly fee buys you back something invaluable: your time. It cuts out the stress of staring at spreadsheets and gives you the confidence to make smart decisions because you know your numbers are spot on. It’s all about freeing you up to do what you do best – growing your business.
At Stewart Accounting Services, we know that no two businesses are the same. As a firm of Chartered Accountants, our entire approach is about getting to know the unique beat of your business, whether you're a sole trader in Stirling, a growing limited company in Falkirk, or a landlord juggling properties in Alloa.
Your Simple Path to a Clear Quote
Getting a no-obligation quote from us is a straightforward, pressure-free chat. It's our chance to listen and understand exactly what you need, not a sales pitch. This conversation is key to us building a quote that's fair, accurate, and perfectly matched to what you're trying to achieve.
A personalised quote is the first real step toward getting back in control of your finances. It’s the moment you stop asking, "how much does bookkeeping cost?" and start asking, "what will this investment do for my business?"
We’ll have a quick chat about the nuts and bolts of your business – things like your monthly transaction volume and whether you need help with payroll or VAT returns. Our aim is to give you a transparent, fixed-fee quote that covers everything you need, so there are absolutely no surprises later on.
Taking that first step is as simple as getting in touch. And if you’d like more tips on choosing the right person for the job, have a read of our guide on how to hire the right bookkeeper for your business.
Your Bookkeeping Questions, Answered
To wrap things up, let's tackle a few common questions that pop up when business owners start thinking about bookkeeping costs. These quick-fire answers should give you the clarity you need to make the right call for your business.
Can I Just Do My Own Bookkeeping to Save a Bit of Cash?
Of course. When you’re just starting, especially as a sole trader, grabbing a spreadsheet or some basic software to manage the books yourself is a popular way to keep overheads low. It's completely understandable.
But there's a flip side. Every hour you spend wrestling with receipts is an hour you’re not spending on what actually grows your business – talking to customers, making sales, or improving your service. As things get busier, the chances of a costly slip-up also grow, which could mean a surprise tax bill or a missed deadline. Think of professional bookkeeping not as a cost, but as an investment in getting it right and buying back your time.
How Often Should I Get My Books Updated?
This really boils down to how busy your business is and how closely you need to watch your finances.
- Monthly: This is the sweet spot for most businesses and what we nearly always recommend. It keeps your financial information fresh, so you always know your cash flow situation, can track your performance, and handle things like VAT returns without that end-of-quarter panic.
- Quarterly: If you're a landlord or a very small business with only a handful of transactions, this can work. It keeps you on track for quarterly deadlines but doesn't give you a real-time picture of your financial health.
- Annually: Honestly, we strongly advise against this. Waiting until the year-end turns bookkeeping into a monumental, stressful task. More importantly, it means you’re flying blind for 12 months, unable to make sharp, data-driven decisions.
Does the Accounting Software I Use Change the Price?
It certainly can, but usually for the better. Modern cloud accounting platforms like Xero and QuickBooks are built to make life easier and more efficient.
When your bookkeeper can work with efficient cloud software, they get more done in less time. So, even after factoring in the software subscription, your total cost is often lower than it would be with old-school manual methods.
These tools can automatically pull in bank transactions and chase up unpaid invoices, cutting down the hours your bookkeeper needs to log. A savvy bookkeeper won't just use the software; they'll help you pick the right one and get the most value from it.
Is Bookkeeping a Tax-Deductible Expense?
Yes, 100%. HMRC sees professional bookkeeping and accounting fees as a legitimate, allowable business expense. You can deduct the entire cost from your profits before calculating your tax.
This simple fact actually lowers the real cost of the service. So, not only does professional help keep you compliant and accurate, but it also directly reduces your tax bill. It’s one of the smartest financial decisions a growing business can make.
Ready for a clear, no-nonsense quote that’s built around your business? Get in touch with Stewart Accounting Services for a free, no-obligation chat about what you need. Let us take care of the numbers, so you can get back to doing what you do best.
Head over to our website at https://stewartaccounting.co.uk to get started.