How much does a bookkeeper cost in London?

Typical bookkeeping prices in London

There is no single price for bookkeeping, because no two businesses need the same amount of work. Still, it helps to know the typical ranges before you start asking for quotes.

Across London, bookkeepers usually charge:

• around £25 to £50 an hour when they bill by the hour
• around £150 to £300 a month for a small business with under 50 transactions a month
• around £300 to £600 a month for a business with 50 to 200 transactions a month

Where you land in those ranges depends far more on how your business runs than on its turnover. A café taking hundreds of card payments a week needs more bookkeeping than a consultant who sends four invoices a month, even if they earn the same.

What pushes the price up or down

These are the things a bookkeeper looks at when working out a fee:

• Number of transactions. Every payment in and out has to be recorded and matched. More transactions means more work each month.
• Number of accounts. Each bank account, credit card and payment provider has to be reconciled separately.
• VAT. If you are VAT registered, your books have to be kept in a way that supports your VAT returns, and the returns themselves take time.
• Payroll. Paying staff adds monthly payroll runs, payslips and submissions to HMRC.
• How tidy the records are. A shoebox of receipts takes longer than a bank feed with receipts attached. If your books are behind, there is usually a one-off catch-up first.
• Software. Cloud software with bank feeds cuts out a lot of manual typing. Paper and spreadsheets take longer.
• Extra reporting. Monthly management accounts or cash flow forecasts go beyond keeping the books, so they cost more.

If you want to bring the cost down, the quickest wins are usually connecting your bank feed, keeping receipts as you go and keeping business and personal spending in separate accounts. If you work for yourself with only a handful of invoices a month, our page for freelancers explains what you are likely to need.

Hourly rates or a fixed monthly fee?

Some bookkeepers bill for every hour they spend. That can suit a one-off job, such as tidying up a year of records, but it makes the monthly cost hard to predict. A busy month or a messy quarter shows up on the invoice.

A fixed monthly fee works the other way round. You agree a price up front for a set amount of work, and that is what you pay each month. You know the cost in advance, it is easier to budget for, and there is no reason to hesitate before asking a quick question.

The key is being clear about what the fee covers. A low fixed fee with lots of extras can end up costing more than a higher fee that includes everything you actually need.

What a fixed monthly fee should include

When you compare quotes, check that each one covers the same work. A typical monthly bookkeeping fee should include:

Many bookkeepers stop at the books, so year-end accounts and tax returns become a separate bill from someone else. We are an accountancy practice, not only a bookkeeper: we prepare and file your Self Assessment return, year-end accounts, Corporation Tax return (CT600) and VAT returns, with year-end and statutory work completed by the Chartered Accountant on the team. That means your tax returns and accounts are usually part of the same fixed monthly fee conversation as your books. Our bookkeeping services page explains what we cover month by month.

Questions to ask before you agree a price

A good quote should answer these without you having to chase:

• What exactly is included each month, and what counts as extra?
• How is extra work priced, and will I be told before it is done?
• Which software will my books be kept in, and will I have access?
• Who does the work, and is it checked by anyone else?
• What happens to the fee if my business grows or my transactions increase?
• Are VAT returns, payroll, year-end accounts and my tax return included or separate?
• How much notice do I need to give if I want to leave?

Cheaper is not always cheaper

It is tempting to pick the lowest quote. But books that are not kept properly cost money in other ways. Missed expenses mean paying more tax than you need to. Late returns bring penalties: a Self Assessment return filed after the deadline means a £100 penalty straight away, even if no tax is due. Our guide to what happens if you miss the Self Assessment deadline explains how that grows.

Good bookkeeping should save you time and make sure the figures behind your tax return are right, so the fee pays for itself.

How we price our work

We do not publish a price list, because two businesses with the same turnover can need very different amounts of work. Instead, we agree a fee with you before we start.

1. 1

   Free 20-minute call

   We look at where your books are now and what you need help with.

2. 2

   Fixed monthly fee

   We agree a fee up front, with no hourly billing and no surprise invoices.

3. 3

   Monthly books

   Your books are kept in IQ Books or your existing software, with live access for you.

Your books can be kept in IQ Books or in the software you already use, such as Xero, QuickBooks or Sage. If you are thinking of moving from another bookkeeper or accountant, our guide to switching accountants explains how that works.

Questions people ask