How Much Does a Bookkeeper Cost for a Small Business in the UK?

Business Updated September 2026 10 min read

Quick Answer

Most UK small businesses pay between £15 and £35 per hour for a freelance bookkeeper, or a fixed monthly fee of £100 to £400 for ongoing bookkeeping. A sole trader with straightforward finances might pay as little as £80 a month, while a limited company with payroll, VAT returns and 200-plus transactions a month could pay £350 to £600 a month. Annual costs for a small business with moderate transaction volumes typically land between £1,200 and £4,800.

On this page

What Does a Bookkeeper Actually Do?
Bookkeeper Hourly Rates in the UK (2026)
Monthly Fixed Fee Packages
One-Off and Ad Hoc Bookkeeping Costs
Employed Bookkeeper Salary Costs
Accounting Software Costs to Budget For
What Affects the Price Most?
Remote Bookkeeping Services vs Local Firms
Your Startup Kit
Frequently Asked Questions

Keeping your accounts in order is not optional, but working out what to pay for bookkeeping can feel like a guessing game. Rates vary enormously depending on whether you hire a freelancer, a local practice or a remote bookkeeping service, and what complexity your business actually needs.

This guide breaks down every layer of bookkeeping cost for UK small businesses in 2026, from one-off catch-up jobs to ongoing monthly retainers, so you can budget accurately before you commit.

What Does a Bookkeeper Actually Do?

Before pricing up the service it helps to understand what you are buying. A bookkeeper records the day-to-day financial transactions of your business: sales invoices, purchase invoices, bank reconciliations, payroll runs and VAT returns. They are not the same as an accountant, who interprets that data and handles tax planning, although many small practices offer both services under one roof.

Invoicing and sales ledger: Raising and recording customer invoices and chasing overdue payments.
Purchase ledger: Logging supplier bills and matching them to bank payments.
Bank reconciliation: Matching your bank statement to your accounting records line by line every month.
VAT returns: Preparing and submitting quarterly VAT returns under Making Tax Digital rules.
Payroll: Running weekly or monthly payroll, submitting RTI reports to HMRC and managing pension contributions.
Management accounts: Producing a monthly profit and loss report so you know where you stand.

Bookkeeper Hourly Rates in the UK (2026)

Hourly rates depend heavily on location, qualifications and experience. An ICB or AAT qualified bookkeeper commands more than someone with no formal certification. London rates sit noticeably above the rest of England, and Scotland and Wales tend to track closer to the national midpoint.

Bookkeeper Type	Typical Hourly Rate
Unqualified freelancer (entry level)	£12 to £18
ICB or AAT qualified freelancer	£20 to £30
Experienced senior bookkeeper	£30 to £45
Bookkeeping practice (regional)	£25 to £40
Bookkeeping practice (London)	£35 to £60
Online bookkeeping service (per hour equivalent)	£15 to £25

If you are only paying below £15 an hour, check what qualifications the person holds and whether they carry professional indemnity insurance. A cheap error can cost you far more in penalties from HMRC than you saved on fees.

Monthly Fixed Fee Packages

Most established bookkeepers prefer to work on a fixed monthly retainer rather than billing hourly. This suits small business owners too because it makes cash flow predictable. The package price is based on an estimate of how long your books will take each month, which largely comes down to your transaction volume.

Business Size and Complexity	Typical Monthly Fee
Sole trader, under 50 transactions a month	£80 to £150
Sole trader or micro-limited company, 50 to 150 transactions	£150 to £250
Small limited company with VAT, 150 to 300 transactions	£250 to £400
Limited company with VAT and payroll (up to 10 staff)	£350 to £600
Growing SME with payroll, stock and multiple bank accounts	£500 to £900

These figures assume the bookkeeper also has access to cloud accounting software such as Xero, QuickBooks or FreeAgent and that you are keeping your receipts reasonably organised. A disorganised client who hands over a carrier bag of receipts will pay more.

One-Off and Ad Hoc Bookkeeping Costs

Not every business needs ongoing monthly bookkeeping. If you are a freelancer or very small sole trader you might only need someone to tidy your records up before your annual self-assessment deadline. These one-off jobs are priced differently.

Catch-up bookkeeping (up to 6 months behind): £200 to £600 depending on the volume of transactions and the state of the records.
Annual accounts clean-up for a sole trader: £150 to £400 as a one-off fixed fee.
VAT return preparation (one quarter): £80 to £200 if not included in a monthly package.
Payroll setup (one-off): £100 to £250 to set up your payroll scheme with HMRC and configure the software.
Xero or QuickBooks setup and training: £150 to £400 for a half-day of onboarding with a qualified bookkeeper.

Employed Bookkeeper Salary Costs

Some small businesses reach a size where hiring an in-house bookkeeper makes more financial sense than paying a practice. This is typically when your bookkeeping needs exceed two days a week. Here is what you should budget for in 2026.

Part-time bookkeeper (2 days a week): £14,000 to £20,000 per year in salary, plus 13.8 percent employer National Insurance on earnings above £5,000 and minimum employer pension contributions of 3 percent.
Full-time bookkeeper (entry to mid level): £26,000 to £34,000 per year outside London.
Full-time bookkeeper (London): £32,000 to £42,000 per year.
Finance manager with bookkeeping responsibility: £38,000 to £55,000 per year.

Once you factor in employer NI, pension, holiday pay, sick pay and the cost of recruitment, a full-time bookkeeper at a £30,000 salary costs you closer to £36,000 to £38,000 in total employment costs. For most businesses with under £500,000 turnover, outsourcing remains the cheaper option.

Accounting Software Costs to Budget For

Whether your bookkeeper uses the software or you do, someone is paying for it. Making Tax Digital for Income Tax is being phased in from April 2026, which means all self-employed people and landlords above the earnings threshold will need compliant software. Factor these costs into your total bookkeeping budget.

Xero Starter plan: £16 per month (limited invoices and reconciliations).
Xero Standard plan: £33 per month (unlimited invoices and bank feeds).
QuickBooks Simple Start: £14 per month.
QuickBooks Essentials (with VAT and payroll): £28 per month.
FreeAgent (via Natwest or RBS): Free with a qualifying business account, otherwise £19 per month.
Sage Accounting: £15 to £33 per month depending on plan.

Many bookkeepers have partner or accountant subscriptions that give them access to the software at a discount, and some include the software cost in their monthly fee. Always confirm this at the outset.

What Affects the Price Most?

When a bookkeeper quotes you a fee, they are estimating how long your books will take. These are the factors that push the price up or down most significantly.

Transaction volume: The single biggest driver. A business with 400 transactions a month takes four times as long to reconcile as one with 100.
Number of bank accounts and credit cards: Each additional account adds reconciliation time every month.
VAT scheme: Standard VAT is straightforward. Cash accounting, flat rate, partial exemption and the construction industry scheme all add complexity and cost.
Payroll size: Each additional employee adds processing time. A five-person payroll adds roughly £30 to £60 per month over a single-director payroll.
Receipt management: If you use a receipt capture app such as Dext or Hubdoc you save your bookkeeper time. Poor receipt records cost you money in extra hours.
E-commerce or multiple sales channels: Integrating Shopify, Amazon or Etsy into accounting software adds complexity and time.
Location: London and the South East attract a 20 to 40 percent premium over the Midlands, North and Wales.

Remote Bookkeeping Services vs Local Firms

The rise of cloud accounting has made remote bookkeeping services a genuinely viable alternative to hiring a local practice. Services such as Ember, Mazuma, The Accountancy Partnership and Crunch offer fixed monthly packages that bundle bookkeeping, VAT returns and sometimes accountancy into one fee.

Mazuma: Plans from around £28 per month for sole traders up to £150 per month for limited companies including year-end accounts.
Crunch: Bookkeeping and accounting bundles from roughly £69 per month for freelancers to £149 per month for limited companies.
The Accountancy Partnership: Fixed monthly bookkeeping from around £45 per month for sole traders.
Traditional local practice: Typically £100 to £400 per month but offers face-to-face contact and industry-specific knowledge.

The trade-off with online services is reduced personal contact and the fact that many operate through a portal rather than a dedicated bookkeeper. For straightforward businesses they represent excellent value. For more complex situations a dedicated bookkeeper who understands your industry often earns their higher fee.

Your Startup Kit

The core equipment most people need to get started. These are live Amazon search links so the pricing stays current.

Receipt scanning app subscription — check current prices on Amazon
Cloud accounting software — check current prices on Amazon
Document scanner — check current prices on Amazon
External hard drive for backups — check current prices on Amazon
Ergonomic office chair — check current prices on Amazon
Dual monitor setup — check current prices on Amazon
Accounting reference books — check current prices on Amazon

As an Amazon Associate we earn from qualifying purchases. These are search links, not specific product endorsements.

Bottom Line

A UK small business with moderate complexity should budget £150 to £400 per month for outsourced bookkeeping in 2026, plus £15 to £33 per month for accounting software if that is not included. Sole traders with simple finances can get by on £80 to £120 a month. The cheapest option is rarely the best: a qualified bookkeeper with professional indemnity insurance who keeps your records MTD-compliant and your VAT returns accurate is worth every penny compared to the cost of an HMRC penalty or an accountant untangling a mess at year end.

Frequently Asked Questions

How much does a bookkeeper charge per hour in the UK in 2026?

Most qualified freelance bookkeepers charge between £20 and £35 per hour. Unqualified bookkeepers may charge £12 to £18, while experienced practitioners at London-based practices can charge £40 to £60 per hour. Always confirm whether the rate includes VAT.

Is it cheaper to do my own bookkeeping?

In pure cash terms, yes, but your time has a value. If you spend five hours a month on bookkeeping and your time is worth £50 an hour, that is £250 in opportunity cost. Most small business owners find that outsourcing for £150 to £250 a month frees up significant time and reduces the risk of errors that lead to HMRC penalties.

What is the difference between a bookkeeper and an accountant?

A bookkeeper records and categorises your transactions on an ongoing basis. An accountant uses that data to prepare statutory accounts, file your corporation tax return, offer tax planning advice and represent you in dealings with HMRC. Many small businesses need both, though some practices offer a combined service. Accountants typically charge more: £75 to £150 per hour versus £20 to £40 for a bookkeeper.

Do I need a bookkeeper if I use Xero or QuickBooks?

Accounting software automates a lot of data entry through bank feeds, but someone still needs to categorise transactions correctly, reconcile the accounts, prepare VAT returns accurately and spot errors. Many business owners use software but still pay a bookkeeper £80 to £150 a month to review and clean up the records monthly. This hybrid approach keeps costs down while maintaining accuracy.

How much does payroll bookkeeping cost on top of basic bookkeeping?

For a small number of employees expect to add £30 to £80 per month to your bookkeeping fee. A single director payroll is often included in a basic package or costs around £20 to £30 per month on its own. For every additional employee beyond the first, most bookkeepers charge £5 to £15 per employee per month.

Can a bookkeeper do my VAT returns?

Yes. Preparing and filing quarterly VAT returns is a standard bookkeeping service. If included in a monthly package it typically adds £30 to £80 per month to the cost. As a standalone one-off service, a single VAT return costs £80 to £200. From April 2026 Making Tax Digital for Income Tax requires compliant digital submission, so a bookkeeper familiar with MTD is essential.

What qualifications should a bookkeeper have?

Look for membership of the Institute of Certified Bookkeepers (ICB) or an AAT (Association of Accounting Technicians) qualification. Both require ongoing professional development and adherence to a code of conduct. Also confirm they hold professional indemnity insurance, which covers you if they make an error. Unregulated bookkeepers carry more risk, regardless of their claimed experience.

How do I know if I am being charged too much?

Get at least three quotes and ask each bookkeeper to itemise exactly what is included: bank reconciliation, VAT returns, payroll, software costs and how many transactions the fee covers. If your transaction volume is low (under 100 a month) and you are being quoted over £350 a month without payroll or VAT complexity, that is on the high side. If the quote seems very low, check qualifications and insurance before signing anything.