Australia is not just a land of stunning beauty but a land of abundance and opportunity. It is a great place for business to thrive despite the competition. As businesses do everything they can to achieve their goals, having a clear idea about bookkeeping and accounting costs can be super relevant and important. In this article we will take a close look at the amazing world of balancing the books, rates and try to answer and clarify your queries.
Keeping track of your finances as a business is a must if you plan to grow and scale your business. If you are wondering if you should have an in-house bookkeeper or are considering hiring one on a freelance basis, then you might want to read on to find out the best option for your business.
What is Bookkeeping?
Bookkeeping involves things like handling payroll to managing day to day accounts payable and receivable. A professional bookkeeper will make your life easier by ensuring that you don’t need to worry about financial details and records when tax return season is at your doorstep.
What do Bookkeepers Charge Per Hour in Australia?
It is important to start out by getting some idea on what bookkeepers charge on average for their services in Australia. Regardless of the size of your business, you will need the help of a bookkeeper to help you with your bookkeeping to ensure that your financial records are in proper shape.
Leaving your finances in the hands of a professional will help you save time and allocate that time for other business needs. Bookkeeping rates in Australia can differ, but on average you can expect an hourly rate can be around $40 to $70 AUD. This is of course variable depending on different factors like the experience and expertise of the bookkeeper and the difficulty of the work as well as where in Australia your business might be located. When choosing a bookkeeper you can consider not just the cost but also how much value they offer. A professional bookkeeper with plenty of experience under their belt can save you a lot of time and trouble by ensuring that your financial records are to the point.
Variations in Bookkeeping Rates Across Australia
Bookkeeping rates vary across Australia depending on the different states. For instance, if you are from Sydney for example you might notice that the bookkeeping rates are more costly. This is because the cost of living in these areas are higher than that of other places in Australia. Alternatively, you can find more cost effective service bookkeeping solutions elsewhere such as in rural towns in Australia.
Average Bookkeeping Cost in Major Australian Cities
When focusing on major cities in Australia two cities that come to mind include Melbourne and Perth.
Melbourne is Australia’s cultural and economic hub, which is famous for its dynamic business landscape. As Melbourne is one of the major cities in Australia, bookkeeping costs tend to be higher here than the average cost across Australia. On average a bookkeeper in Melbourne might change somewhere between $45 TO $75 AUD per hour. The high cost of living as well as the demand for bookkeeping services are factors that have led to these relatively high rates.
In Perth where the sun shines golden and bright, bookkeeping is more in line with the national average for Australia. In Perth you can expect to pay somewhere between $40 to $70 AUD per hour. This is mostly because the cost of living is not as high in Perth as it is in cities like Melbourne.
Therefore it is important to have an idea and consider the locality your business is located. This will be important in allocating your marketing budget which will depend on where in Australia your business is located.
Bookkeeping Services for Small Businesses
If you are an owner of a small business in Australia, your requirements for financial services will be different from larger businesses. If you have been wondering how much it will cost to hire a bookkeeper for your small business, you will find the information you need here. There are many bookkeeping service providers that specialize in offering their services for small businesses which makes them ideal for small businesses looking for cost effective bookkeeping services.
Choosing a bookkeeper with experience related to the sphere of small businesses means that you have the support of a professional that suits your requirements and who most likely understands small businesses and the challenges faced by small businesses. While small businesses are technically smaller in scale, there is still a variety of small businesses of different scale. A small business can be a business with half a dozen employees or with one or two employees.
Small businesses often outsource their work load, they still need debtor management while others might only require accounts receivable and reconciliation.
Many small business bookkeepers offer set services on a monthly basis. Their services will come in packages instead of paying on a day to day basis. To get a quote for your business by small business accountant and it is best to contact the service providers directly.
If you choose to hire a professional bookkeeper who has experience offering bookkeeping for small businesses, they will help you keep your finances in check while also helping you to save time, especially if you don’t have formal training in business finances.
What do Accountants Charge for Bookkeeping in Australia
In this section let’s look at what accountants charge for bookkeeping. Many accountants offer bookkeeping services to ensure you have your financial records as they ought to be and that it follows the latest tax regulations.
Usually accountants charge higher rates than individuals who only specialize in bookkeeping, as they often offer a range of financial services. For an accountant offering bookkeeping services you might expect to pay somewhere around $100 to $150 per hour for an accountant’s bookkeeping services around Australia.
If you are trying to decide between hiring a bookkeeper or an accountant for your bookkeeping requirements, it’s important to consider how qualified and experienced the service provider is as well as your available budget. An accountant can be an invaluable asset for things like complicated financial situations your business might be or might be in, but it is important to keep in mind the more experienced and qualified the expert, the more they are going to cost to invest in their services. Now let us look at how much an accountant makes per hour in Australia below.
How Much Does an Accountant Make in Australia per Hour?
If you have a clear idea of what an accountant makes per hour in Australia you might get a sense of costs linked with bookkeeping services offered by these professionals.
In Australia, an accountant’s salary can range from $60,000 to $100,000 or sometimes above this range too. If you take the average hourly rate based on this range alone it comes to about $30 to $50 AUD.
It is important to keep in mind that this figure stands for the average annual salary of an accountant and the average the bookkeeping services they offer might be priced higher due to the more specialized nature of the work. Once you hire an accountant for your bookkeeping requirements, you must remember that you are paying for their years of experience, expertise and knowledge, which will come in handy in keeping your business running smoothly.
Is it Better to Invest in a Bookkeeper or Accountant?
You must have possibly realized that by now bookkeepers usually are more budget friendly compared to accountants if you are considering your choices based on budget alone. But does budget-friendly mean it will be the right service for your business?
If you look closely at the pros and cons of hiring a bookkeeper who only specializes in bookkeeping, if you select a qualified and experienced bookkeeper they will ensure that transactions are recorded accurately in handling financial tasks. Hiring a bookkeeper can be cost effective, especially if you are on a tight budget and you require regular bookkeeping for your business.
If you look at accountant in Geelong, these experts offer a broad range of financial services which includes strategic advice, tax planning and advice for your business;’s financial situation in the long term. But all these services means that investing in accountants might cost more.
When it comes down to choosing between an accountant or a bookkeeper it all depends on the requirements of your business. Every business is different and has different needs. If your business is looking for someone to handle financial situations, tax planning, and financial strategy, an accountant’s expertise can be priceless for your business to help it grow and reach its goals.
How Much Does a Freelance Bookkeeper Charge in Australia ?
Now that you have an idea about deciding between an accountant or bookkeeper for your business, this part of the article will look at freelance bookkeepers. Freelancers are known for their flexibility and specialized services. If you are wondering how much you should be paying a freelancer with expertise for bookkeeping then keep on reading.
Freelancer bookkeepers in Australia charge competitive prices, usually these fall between $35 to $60 per hour. This will vary vastly depending on the location, experience, and the scope of work needed.
One of the major perks of hiring a freelance bookkeeper is the flexibility and adaptability they offer. Freelancers can adapt for your specific needs and provide services based on a project to project basis or an ongoing basis. This makes them an attractive choice for a business looking for flexibility.
A great bookkeeping service will help you scale your business and take it to the next level. Bookkeeping will let you refocus your attention on important aspects of your business and manage your finances effectively. This will help you drive the growth of your business and reach your goals. That’s not all, when tax season comes along you don’t need to worry and stress about having to deal with it. With the help of a professional bookkeeper, tax season will not feel like a heavy burden you need to carry. Bookkeeping can help you reduce the risk of any possible errors in your tax filings which will in turn reduce the possibility of penalties or audits from the ATO or the Australian Taxation Office. With the help of a professional bookkeeper you will be ready when the ATO comes knocking on your door requesting the required documents. Bookkeeping software that is available at present will help your business run smoothly,