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.