Bookkeeping costs

Bookkeeping is mostly priced on time, so anything that adds time adds cost. The main factors are:

• the number of transactions each month, including bank lines, sales invoices and purchase receipts
• how the records reach the bookkeeper, whether through bank feeds into software or as paper and spreadsheets
• whether the business is registered for VAT, which needs each transaction coded correctly
• extra tasks such as chasing unpaid invoices, paying suppliers or reconciling several bank accounts
• whether the person is a freelance bookkeeper or an accountancy firm adding bookkeeping to a wider package

Record-keeping is also becoming more structured for some people. Sole traders and landlords within Making Tax Digital for Income Tax must keep digital records and send quarterly updates from compatible software, and VAT-registered businesses already use MTD for VAT.

The sources below disagree, partly because they measure different things. Bark's figures come from requests made through its marketplace, while the IRIS survey asked accountancy practices what they charge. The IRIS survey dates from February and March 2024 and Bark's page was last updated in September 2025, so both are older than Xero and Zmartly. The table runs in alphabetical order, which is not a ranking.

Many businesses prefer a fixed monthly fee. Xero, published 15 May 2026, gives retainers of £50 to £150 a month for a sole trader, £120 to £400 for a small limited company and £300 to £700+ for a growing SME. The same page also gives an outsourced retainer range of £100 to £500, which does not quite fit with its other figures. Zmartly, updated 28 August 2026, gives £100 to £300 a month, and Bark, updated 9 September 2025, says monthly bookkeeping is typically between £50 and £150, with a range of £65 to over £3,000 per month. None of these states whether VAT is included.

Some accountancy providers sell bookkeeping as an add-on to their packages. The Accountancy Partnership lists bookkeeping from £20.00 a month, excluding VAT, on top of its plans. Bookkeeping can also sit inside a larger package: Zmartly's top monthly limited company band, for a company with staff and bookkeeping, is £180 to £250+ a month (VAT not stated).

Bark also publishes regional hourly medians, giving London, Manchester, Birmingham and Bristol each at £20 and Edinburgh at £15. It gives no figure for Sussex or the South East, and we have found none elsewhere.

A bookkeeping service usually covers entering or checking transactions, reconciling the bank accounts and keeping the ledgers up to date so the figures are ready for the accountant. Depending on the agreement, it may also cover sales and purchase invoices.

Things that are commonly separate include:

• VAT returns, which GoForma lists at £24 a month and Zmartly gives at £100 to £250 per quarter
• payroll, which Zmartly gives at £4 to £12 per payslip per month
• year-end accounts and tax returns, which are accountancy work rather than bookkeeping
• accounting software subscriptions
• catching up on months or years of records that have fallen behind

The alternative is employing a bookkeeper. Xero gives an employed bookkeeper salary of £24,000 to £35,000, attributing the figure to the National Careers Service. Our page on bookkeeping explains the work itself in more detail.

• Connect your bank account to accounting software so transactions arrive automatically rather than being typed in.
• Photograph receipts as you go instead of saving them for later.
• Keep business and personal spending in separate bank accounts, which cuts the time spent sorting them.
• Do the simple parts yourself, such as raising invoices, and pay for the reconciliation and checking.
• Agree a fixed monthly fee with a clear transaction limit, so you know what happens if you go over it.
• Avoid falling behind, since catch-up work is usually slower and so costs more.

• Is the fee hourly or fixed, and does it include VAT?
• How many transactions a month does a fixed fee cover?
• Which software do you use, and do I pay for it separately?
• Does the price include VAT returns, payroll or chasing debtors?
• Will the bookkeeping be ready for my accountant, or are you also preparing the accounts?
• Are you supervised for anti-money laundering? Bookkeepers who provide accountancy services must be registered with HMRC unless a professional body supervises them.

For a rough idea of what your own work might cost, try the accountant fee estimator. If you would like us to pass an enquiry to a local accountant or bookkeeper, see how it works.