If you’re a small business owner considering hiring a bookkeeper in the UK, one of the first questions you’ll ask is: how much does it cost? The answer varies widely depending on the type of bookkeeper, the complexity of your accounts, and whether you choose a local bookkeeper, an online accountancy firm, or a freelancer. In this guide, we break down exactly what you can expect to pay and what factors influence the price.
Typical Bookkeeper Costs in the UK
Bookkeeper costs in the UK vary significantly based on experience, location, and service model. Here’s a general overview of what you can expect:
- Freelance bookkeeper (self-employed): £15–£30 per hour. Most freelancers charge an hourly rate, though some offer monthly packages. Based in London, rates tend to be higher, typically £25–£45 per hour.
- Bookkeeping firm or accountancy practice: £75–£250+ per month for small businesses, depending on transaction volume and services included.
- Online bookkeeping services: Often the most cost-effective, starting from £50–£150 per month for basic bookkeeping. These are typically cloud-based and cover most needs for small businesses.
What Factors Affect Bookkeeping Costs?
Several factors influence how much you’ll pay for bookkeeping services in the UK:
1. Transaction Volume
The more transactions your business generates each month — invoices, purchases, bank payments, expense claims — the more time bookkeeping takes. A business with 20 transactions per month will cost considerably less to bookkeep than one with 500.
2. Complexity of Your Finances
If you have multiple bank accounts, credit cards, payroll, VAT, foreign currency transactions, or e-commerce sales across multiple platforms, your bookkeeping is more complex and will cost more. A sole trader with a single bank account and simple invoicing is at the lower end of the pricing scale.
3. Frequency of Reporting
Monthly bookkeeping costs more than quarterly, which costs more than annual. If you want up-to-date management accounts every month, you’ll pay a premium — but the value in terms of real-time financial visibility is significant.
4. Additional Services
Many bookkeeping packages include — or can be bundled with — VAT return preparation, payroll, and management accounts. Adding these services will increase the monthly cost but often represents better value than sourcing each service separately.
5. Location
Bookkeepers in London and the South East typically charge more than those in other regions, reflecting higher living costs. However, with cloud accounting and remote working, location is less relevant than it used to be — many online bookkeeping firms like ProKeeper work with businesses across the UK at rates that aren’t inflated by London costs.
Hourly Rate vs Fixed Monthly Package — Which Is Better?
Many bookkeepers charge by the hour, but for most small businesses, a fixed monthly package is preferable. With hourly billing, costs can vary unexpectedly and you may feel reluctant to contact your bookkeeper to ask questions. A fixed monthly fee gives you predictable costs and unlimited contact within the scope of your package. At ProKeeper, we only offer fixed monthly pricing for exactly this reason.
Is Hiring a Bookkeeper Worth It?
For most small business owners, yes — absolutely. Consider what your time is worth. If you’re spending 5 hours a month managing your own books, and your time is worth £50/hour in terms of billable work or business development, that’s £250 of value you’re giving up each month. A professional bookkeeper handling this for £100–£200/month makes clear financial sense, and you’ll likely end up with more accurate records and better tax planning as a bonus.
What Does a Bookkeeper Do That I Can’t Do Myself?
Beyond saving time, a professional bookkeeper brings accuracy, expertise in tax rules, knowledge of allowable deductions you might miss, and experience with accounting software. They’ll spot bank reconciliation errors, flag unusual transactions, ensure VAT records are correct, and hand your accounts to your accountant in a state that saves significant time (and fees) at year end.
ProKeeper Bookkeeping Pricing
At ProKeeper, our bookkeeping services in London start from £150 per month for small businesses on a fixed monthly package. This includes monthly bank reconciliation, transaction categorisation, and management accounts. VAT returns and payroll are available as add-ons or included in higher-tier packages. Contact us for a no-obligation quote tailored to your business.
Summary — Bookkeeper Costs UK
To summarise, bookkeeper costs in the UK range from £15/hour for a freelancer to £250+/month for a full-service online accounting firm. For most small businesses, a fixed monthly package between £100–£250 per month gives the best combination of value, accuracy, and peace of mind. The cost of getting bookkeeping wrong — in HMRC penalties, missed deductions, or poor financial decisions — almost always exceeds the cost of hiring a professional.
Need a bookkeeper in London? Book a free consultation with ProKeeper today — we’ll give you a clear fixed price within 24 hours.