How much does a bookkeeper cost for a small business?
For most small businesses, monthly bookkeeping runs between $200 and $2,000 per month. That’s a wide range because bookkeeping isn’t one-size-fits-all. A sole proprietor with one bank account and 50 transactions a month is a very different job than a contractor running multiple crews with subcontractors, equipment loans, and job costing needs.
The biggest factor that determines cost is transaction volume. More transactions means more time categorizing, reconciling, and reviewing. The number of bank and credit card accounts matters too. A business with one checking account and one card is quicker to manage than one with four accounts, a line of credit, and an equipment loan. Industry complexity plays a role as well. Trades and construction businesses need expenses tracked by job and often deal with subcontractor payments, progress billing, and retention that general businesses don’t have to think about.
You’ll see a few different pricing models. Some bookkeepers charge hourly, typically $40 to $100 per hour depending on experience and location. Others charge a flat monthly rate based on your volume and complexity. Flat monthly pricing is more predictable because you know what you’re paying regardless of how many questions you ask or how messy a particular month is. Hourly billing can add up fast if your books need extra attention.
For contractor and trades businesses around Long Beach and the South Bay, expect to pay somewhere in the $300 to $800 range monthly for full-service bookkeeping that includes transaction categorization, bank reconciliation, and monthly reports. Simpler operations with fewer transactions can start lower. Businesses doing over a million in revenue with multiple crews and lots of moving parts will be on the higher end.
One thing to consider is what happens when bookkeeping doesn’t get done or gets done poorly. Contractors and service businesses often miss deductions because expenses weren’t tracked or categorized correctly throughout the year. A $400 monthly bookkeeping fee that saves you $5,000 or more in properly captured deductions is paying for itself several times over. That doesn’t even account for the time you get back or the stress of scrambling at tax time with no usable financials.
If your books are behind, there’s usually a one-time catch-up cost before monthly work begins. This depends on how far behind you are and how messy things got. A few months of cleanup is a smaller project than reconstructing two years of records from bank statements.
The cheapest option isn’t always the best value. A bookkeeper who understands your industry will set up your chart of accounts correctly, track job costs properly, and hand your CPA clean books that lead to an accurate return. Someone unfamiliar with construction or trades might categorize things in ways that create problems at tax time or miss industry-specific details entirely.
If you’re running a trades or service business and want to understand what bookkeeping and tax services for contractors would cost for your specific situation, the most accurate answer comes from a conversation about your transaction volume, number of accounts, and what you actually need done each month.
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More Questions
How do I set up a chart of accounts for a construction company?
The key is separating job costs from overhead expenses so you can see true gross profit on each project. Break your Cost of Goods Sold into materials, subcontractors, direct labor, and equipment, then keep operating expenses in their own section.
Read answerWhat happens if I misclassify a worker as 1099?
You'll owe back payroll taxes, penalties, and interest at the federal level. In California, the consequences are even steeper thanks to the ABC test under AB5, which makes it harder for trade and construction businesses to classify workers as independent contractors.
Read answerWhat triggers an IRS audit for a small business?
The most common triggers include reporting losses year after year, misclassifying workers as subcontractors, high deductions relative to income, and sloppy or missing records. Trade businesses face extra scrutiny around cash transactions and 1099 reporting.
Read answerHow do I track payments to subcontractors for tax time?
Collect a W-9 from every sub before their first payment, pay through traceable methods, and record each payment in your accounting software by vendor. At year end you'll need to file a 1099-NEC for every subcontractor you paid $600 or more.
Read answerWhat happens if I haven't done my bookkeeping in years?
You're exposed to IRS penalties, missed deductions, and blind decision-making. The good news is it's fixable. Catch-up bookkeeping reconstructs your financial records so you can get current and move forward.
Read answerWhen is the deadline for filing a business tax return?
It depends on your business structure. Partnerships and S-corporations are due March 15. Sole proprietors and C-corporations are due April 15. Extensions are available but don't extend your time to pay.
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