Bookkeeping Melbourne Rates – what is the cost?
What is the value?
Bookkeeping Melbourne Rates: So you’re wondering how much bookkeepers charge in Melbourne? As you search Google and jump from site-to-site you’ll be hard pressed to find bookkeepers with prices on their websites. There is a reason for that.
The reason most bookkeepers don’t put prices on their sites is that they don’t want to be judged as “expensive” without having a chance to connect with the person. They don’t want “sticker shock” scaring away potentially great customers.
The industry average is $65 per hour in Australia, which is still very low compared to your accountant who will be charging you $150 per hour for their junior staff, $250 per hour for senior staff, and $400+ per hour for partners. I probably don’t need to convince you that you shouldn’t get your accountant to do your bookkeeping, unless you love wasting money!
So given that the industry average is $65 per hour, that means 50% of bookkeepers charge less than that, and 50% charge more. The average cost of bookkeeping services doesn’t tell you what results are gained, it is simply a number. How can that be the metric used for determining if the bookkeeper is the right one for your small business?
Buying a mobile phone, as an example.
You would never say to someone who has no experience with mobile phones; just get the cheapest one, or get the one that is the middle priced one.
If you simply need an entry level phone, get that one.
If you need a high powered business phone, get a Samsung Galaxy Note, or an iPhone.
And if you aren’t using all the functions of a high end phone, but still want a camera, etc. then you look at something in the mid range.
That is why context is so important. That is why showing someone a price as how to attract people to a phone, isn’t usually how the phone makers try to sell their product.
Are you surprised that when you Google search Melbourne Bookkeeping Rates, the prices are somewhat elusive?
So how much should you pay a bookkeeper in Melbourne?
It’s only natural that capital cities will attract higher prices. I work as a mentor to many bookkeepers in Australia, and a bookkeeper in a country town very often charges a lot less per hour than someone in the city. It makes sense! In the same way cafes in the city charge more for coffee and food.
Bookkeepers in cities have higher costs of living, higher wages, and higher rent (unless they are virtual bookkeepers like us). The cost of housing is significantly higher in capital cities, than in other areas.
Many of the bookkeepers I mentor charge upwards of $70 per hour, and some charge more than $80 per hour.
It can become very confusing for business owners to know how much they should be paying.
Do higher bookkeeper fees equal a better quality bookkeeper?
Don’t make the common mistakes that many business owners make.
Believing that higher cost equals better quality.
And that if you pay peanuts, you get monkeys!
Both of these statements CAN be true but they are not necessarily true in all cases.
I know this from personal experience because I’m a small business owner! I’ve had to hire my own bookkeeper and honestly I didn’t have a great experience.
Firstly it was really hard to find someone who I could connect with. I want to Google to find my bookkeeper because I know TOO MANY bookkeepers in the industry so I had to find someone I didn’t KNOW already.
Then when I did hire someone, I had a bad experience.
- The $80 per hour bookkeeper was far too busy for me because I was small. It wasn’t worth her time.
- Then $70 per hour bookkeeper was far too detailed, wanting tax invoices for small items and recurring subscriptions (every single one!)
- The $45 per hour bookkeeper didn’t complete tasks, and often left things undone, so that I had to resolve them myself.
- My $25 per hour bookkeeper was an absolute legend!
So as you can see, higher fees doesn’t equal better bookkeeping, necessarily. It just means higher fees.
And understanding Melbourne Bookkeeping rates as an hourly rate is somewhat giving you part of the answer, as the answer. That is not very useful. Okay, so you know the hourly rate – but how many hours will it take that Bookkeeper to do the work you need done? The information they give you is mildly reassuring, and you might infer what this means, but you don’t actually know. Doesn’t seem like sound business sense, does it?
Is the Bookkeeper fast, or slow?
Is the Bookkeeper able to streamline process, eliminating various manual tasks with templates and automation?
Are they able to see how your business is actually going with a Business health check? Or do they simply slot in and complete the task you have assigned them?
You want a bookkeeper that can see financial errors, and what caused them.
The bookkeeper needs to know how to fix the root cause.
This is simply good bookkeeping.
A great bookkeeper will be able to understand how to maximise what you are already doing in your business. And show you what are the money sinks and time sinks. Whether that is clients, suppliers, staff, etc.
Hourly rate, with no other context, does not really help you….
We’ve long heard of people giving a quote using this method, if they want the work: they pick a rate that isn’t as high as the most expensive offer, because that is too much for potential clients to accept. And they pick a rate that isn’t as low as the cheapest offer, because they don’t want to undersell themselves. While there is logic in that approach, it doesn’t really tell you what value that Bookkeeper is going to add to your business, does it? They simply are mid-range in price. No other context. You don’t know if they are good. You don’t know if they are bad. Just that they are not the most expensive. Or the least expensive.
That is only what you know from that figure….
That is why the value that the Bookkeeper brings as an individual is just as important as a metric to decide whether or not to hire someone, as the hourly rate is. It is all of the information combined together that will help you get a realistic idea as to what the Bookkeeper, or Bookkeeping business, is going to bring to your company.
Fixed Price Bookkeeping Packages ~ our answer to Bookkeeping Melbourne rates.
We gave up on using a bookkeeper hourly rate quite some time ago because we believe that hourly rate billing puts all the risk onto YOU the business owner. When a bookkeeper charges you by the hour there is no incentive for them to work quickly, in fact, there’s an incentive to work slowly. That is why bookkeeping rates are something we stay away from.
All our bookkeeping, accounting and consulting is on fixed fee monthly packages. So you can plan ahead and know what to expect. This is good business practice.
Thank you for reading our post. If you think we are the right Bookkeeping service for you, please get in touch.
• If you are interested in engaging with our Bookkeeping services ~ please click here to get in contact.
Enjoy the Melbourne weather!