How much should bookkeepers cost?

Question

Currently looking to outsource bookkeeping/accounting tasks to a bookkeeper. I am realizing a difference between costs of services.

How much should it cost me to outsource to a company (not a freelancer) if i have a couple if properties. And how many hours does it reasonably take for a bookkeeper to oversee a renter property per month if I already have a property manager?

Todd Lennig · Answer

@Abdul Lateef. depends what you are looking for.  if you only want your transaction categorized, you can go on up-works and have it taken care of for 20 bucks a month.  If you are hiring for experience and guidance it will cost more.  Bookkeeping is no different than hiring a plumber or roofer.  You get what you pay for and sometimes you are paying more for experience and guidance than the actual time it takes to do the job.

I don't price out hourly.  I price out based on a number of factors and my experience, knowledge and working with multiple other investors come into play.  Am I the cheapest? Nope.  Am I the most expensive?  Nope.  Do I bring value to the table beyond the work that I am doing for you?  Heck yeah.

Hope that helps.

Matthew Simpson · Answer

@Steven Foster Wilson Would you kind sharing who you use for bookkeeping?

Ragan Manning · Answer

I agree with most of the comments above about making sure you find a bookkeeper with REI experience. Not all bookkeepers are the same and that's why some specialize in different niches.  When it comes to working with a large company, I would be a little hesitate. I did some contracting work for a larger company who was "great" at bookkeeping, which they may have been with generic companies but I only worked with their REI clients. Every client they sent me I had to email them with a list of things that needed to be changed or handled the correct way. It was a nightmare for me because I couldn't do anything to help these clients of theirs because I was only a contractor. NOW this is not saying ALL companies are like this, but I would just make sure your you do your do diligence to know as much as you can and ask questions to make sure they know what they are doing. As mentioned above, you get what you pay for.

Alex Talcott · Answer

It's important to me that I'm prepared if the bookkeeper gets hit by a bus.

If you're not able to vet that their deliverables are widely intelligible, it might be prudent to hire a company with at least a few accountants.

I like to avoid having to hire people who inevitably look at the last person's work -- "I have no idea what they were doing/what this is!"

Markus Shobe · Answer

@Abdul Lateef you are going to get a lot of different answers. The most important thing is to get a bookkeeper that specializes in real estate. It may cost you a little bit more but it will give you peace of mind that you have a bookkeeper that specializes in real estate. You don't just want to get any bookkeeper as that will cause a lot of mess down the road. I would not look for a bookkeeper that charges hourly, I would look for one that charges a fixed rate so you know how much it will cost each month.

Scott Mac · Answer

It might be best to call a few and get an idea of the packages they offer and their prices.

Steven Foster Wilson · Answer

My accountant charges $150 / month here in Columbus OH.

How much should bookkeepers cost?

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