Bookkeeping costs can vary depending on the state in which you run your operations, as law enforcement might have different set norms for varied business practices. Compliance with such norms requires specialist bookkeepers who have good domain experience, and specialized expertise always costs more. Bookkeeping agencies have different pricing models that you need to examine to understand which service would contribute meaningfully to your business requirements. Therefore, understanding the real cost of bookkeeping is important to prevent overpaying and decide on the more feasible option for you, in-house or outsourcing.
It is quite usual to feel overwhelmed at first with so many services vying for your attention as you try to analyze your financial outcomes better. However, data reveals that outsourcing bookkeeping could be a viable option for you, regardless of your business size and revenue:
- 51% CPA firms in the United States suffer from the anxiety of dealing with constantly changing standards of regulations
- Businesses that have outsourced bookkeeping functions have reported cost savings of 30-75%
- The bookkeeping outsourcing market will grow at a CAGR of 8.21% in the period between 2025 and 2030
Therefore, your business must resort to bookkeeping services to ensure cost savings and legal compliance in 2025.
In this article, let us compare bookkeeping costs based on their average rates in different states. Thereafter, we shall dive into what affects varying bookkeeper costs and how you can derive the best value out of bookkeeping prices.
What are the Bookkeeping Costs in the US States?
Understanding the cost of hiring bookkeepers is central to deciding on whether to hire external bookkeepers or run the operations with your in-house team. In the table below, we have charted the costs that you would need to bear per hour for bookkeeping services, and have adjusted the amount accordingly for the per annum costs. You might have often asked yourself, “How much does a bookkeeper cost?” Well, here is your answer.
Top 5 Wage States
| Rank | State | Annual Salary | Hourly Equivalent |
| 1 | Washington | $67,309 | $32.36/hr |
| 2 | District of Columbia | $67,156 | $32.29/hr |
| 3 | New York | $65,017 | $31.26/hr |
| 4 | Massachusetts | $64,904 | $31.20/hr |
| 5 | Alaska | $64,002 | $30.77/hr |
Middle 5 Wage States
| Rank | State | Annual Salary | Hourly Equivalent |
| 1 | Pennsylvania | $59,571 | $28.64/hr |
| 2 | Delaware | $59,480 | $28.60/hr |
| 3 | California | $58,651 | $28.20/hr |
| 4 | Minnesota | $58,205 | $27.98/hr |
| 5 | Rhode Island | $58,199 | $27.98/hr |
Bottom 5 Wage States
| Rank | State | Annual Salary | Hourly Equivalent |
| 1 | Arkansas | $49,142 | $23.63/hr |
| 2 | West Virginia | $46,008 | $22.12/hr |
| 3 | Florida | $44,411 | $21.35/hr |
| 4 | Oklahoma | $54,873 | $26.38/hr |
| 5 | Montana | $54,546 | $26.22/hr |
Therefore, going by these bookkeeping services rates, you could have a good understanding of the figures you are looking at per year in 2025.
What Affects Bookkeeping Costs Across States?
Bookkeeping pay rates are reflections of the cost of living in a particular US state, and it is commensurate with the other market prices that affect it. These are the major factors that come into play when it comes to affecting bookkeeping costs.
Cost of Living
You will have noticed that places like Washington have some of the highest bookkeeping costs, while places like Oklahoma and Montana are among the lowest-cost options. These rates are commensurate with the average cost and standard of living in these places. The idea is simple: the operational costs are higher to adjust for the living costs and the expertise of the professionals.
Tax Regime Complexity
The tax regimes in a particular state could cause a dramatic rise in the hourly or monthly bookkeeping rates. Adjustments made for sales tax and payroll tax add to the complexity of the salary break-up. Furthermore, certain industries, such as the health industry, have strict compliance requirements, which could lead to structural rigidity in operations, causing a budget hike.
Supply and Demand
Of course, the classic economic explanation. During your market research, you will invariably find that the bookkeeping costs in financial hubs are way higher than in places that do not have a high concentration of competent bookkeepers. Therefore, the location of your intended business operations has a lot to do with the costs you incur.
Remote bookkeeping
When you ask the question, “How much do bookkeepers charge?” you have to keep in mind that bookkeepers are employed in offshore locations as well. These employments are carried out by outsourcing agencies, and you typically pay a lot less when you opt for these services from reputable U.S. accounting firms.
Other Key Factors
Apart from these headers, these are the other factors that have an impact on the costs of bookkeeping services:
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- Transaction Volume: The more you transact, the more taxes you pay, thus increasing your total expenditure.
- Process Complexity: Bookkeeping costs vary greatly depending on the complexity of the data that is to be processed. If you have multiple inventories and departments involved, your financial reporting will be time-consuming and relatively expensive.
- Service Level: Costs also depend on the tenure of service, and you need to figure out if you will opt for an outsourcing agency or employ freelancers and individual contractors.
- Service Provider Experience: When businesses pay more to experienced bookkeepers, they are accounting for the fact that they can rest assured about the accuracy of reports and legal compliance. Therefore, the quality of bookkeeping services has a lot to do with the cost of services.
In 2025, your business needs to understand the type of service that would serve its best interests and move forward in that direction.
How to Derive the Best Value Out of Bookkeeping Services?
Since bookkeeping services are not exactly cheap because they require specialized expertise, you must derive maximum value from the rendered services. Below are some ways in which your business can ensure this objective:
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- Cloud-based Systems: According to data, 67% accountants believe that cloud-based systems have made their work easier than ever. It is a plausible conclusion because these systems integrate data from various software applications so that actionable insights can be collated on a unified interface.
- Smart Outsourcing: Outsourcing to the best U.S. accounting firms provides the best value for businesses because they include every aspect within an affordable package. Therefore, you can save on a lot of costs that have to be borne should you decide to move ahead on your own. For instance, the costs of something as rudimentary as software updates could cost you between 500-2000 USD per year!
- Scalability: The best value that could be derived from bookkeeping costs is probably from the ease of scalability. Scaling a business requires going through lots of processes, including hiring and training new staff, and dealing with challenges like maintaining the quality of service. Outsourcing could solve all these issues at no extra cost, because you only pay for a service rather than being responsible for the salaries of employees.
- Access to Specialized Software: Opting for external bookkeeping services ensures that you get access to specialized bookkeeping software, besides expert services. Therefore, you have the privilege to align your technical work processes with their financial outcomes, leading to real-time, effective alteration of business policy.
In 2025, it is necessary to derive a good RoI on your investments so that profits can be maximized and growth sustained.
Bookkeeping Costs Demotivating for Your Business Aspirations? Look No Further than Atidiv!
It is quite common to get overwhelmed with bookkeeping costs, especially if you are just starting out as an entrepreneur. However, it is important to cope with the initial dogged feeling and partner with top financial and accounting brands like Atidiv. Continue reading here to learn about how the invisible frictions in the financial processes could hinder business growth and how you could tackle the same with Atidiv.
Let us now take a look at the significant ways in which your business could gain traction in the industry when you join hands with Atidiv:
- Smooth functioning of daily processes like disbursement of funds and bank reconciliation, so that your brand image gains steady credibility
- Timely and tailored financial reports that detail the gaps and potential to be addressed from a growth perspective
- Constant training of your in-house teams and seamless integration of bookkeeping software with your internal systems for accuracy in work processes
- Expert advice that propels your vision of growth with strategic financial planning
- Accomplishment of financial aspects so that you can focus more on the strategic and technical aspects of business operations.
Atidiv’s proud presence in the industry for 16+ years has been laden with achievements as grand as saving financial resources world 50 million USD for its clients. Get in touch with us today to make the most of the superior bookkeeping services!
FAQs about Bookkeeping Costs
1. How to bypass the supply and demand aspect and hire a bookkeeper at reasonable fees in 2025?
The only way to successfully bypass the demand and supply loop is by outsourcing to a trusted finance and accounting service provider like Atidiv. Since you will not be directly paying salaries to the workforce at your disposal, you are more likely to receive a softened blow if you are operating in a financial hub. With the agency’s flexible budgeting and tailored services, expect only the best business outcome.
2. Is it possible to scale better with outsourced bookkeeping?
Yes, it is. In fact, it is imperative that you outsource your bookkeeping functions to scale better. Outsourcing allows you to work with a flexible finance and accounting workforce that does not require extra funds when dealing with more work. Therefore, the transition period during your growth sees a consistency in polycimaking and sharpness in market-related decisions.
3. Why does New York have such high rates of annual salaries for bookkeepers?
You will have noticed that financial hubs like New York or Washington have a high-salary cap for bookkeepers. The principal reason for this is that these cities are the financial epicenters of the United States, and the number of competent bookkeepers plying their trade in these locations is high. Since the demand is high, they command a bigger salary as compared to their counterparts in Oklahoma or Montana.