If you run a business in the UK, you already know how quickly bookkeeping tasks can pile up. At first, it feels manageable — a few invoices here, a few receipts there. But as your business grows, so does the paperwork. That’s usually the moment when business owners start asking the big question:
“How much does bookkeeping cost in the UK?”
This guide breaks it down in simple language. No jargon. No confusing accounting terms. Just clear information that helps you make the right decision for your business.
Why Bookkeeping Isn’t Optional (Even for Small Businesses)
Many small business owners try to handle bookkeeping on their own. It feels like a smart way to save money. But here’s where things change.
One missed entry.
One incorrect VAT calculation.
One late submission.
And suddenly, the cost of fixing mistakes becomes much higher than the cost of hiring help.
Professional bookkeeping isn’t just about keeping your accounts clean — it keeps your business compliant, helps you understand your cash flow, and saves you long hours every month.
So, How Much Do Bookkeepers Charge in the UK?
There’s no clear cut answer to this question because cost of bookkeeping in the UK vary depending on a few factors:
- Type of business
- Monthly transaction volume
- Payroll requirements
- VAT registration
- Level of support you need
Let’s explore different pricing models and what you can realistically expect to pay.
Hourly Rates for Bookkeeping in the UK
Most freelance bookkeepers and smaller agencies charge hourly. This is one of the most common pricing structures.
- Basic bookkeeping: £15 – £20 per hour
- Experienced / certified bookkeepers: £30 – £45 per hour
- Specialised bookkeeping or industry-specific tasks: £45+ per hour
You’ll usually pay the lower end of this range if your bookkeeping is simple — limited invoices, no VAT, minimal reconciliations. If your books are messy or complex, expect higher rates.
Hourly Rates are Best For:
- New businesses
- One-off clean-ups
- Companies with unpredictable bookkeeping volume
Monthly Bookkeeping Packages
This is the go-to option for many small and growing businesses because it offers predictable costs.
Here’s a realistic breakdown:
| Business Size / Complexity | Monthly Cost (Approx.) |
| Sole traders (minimal transactions) | £50 – £150 |
| Small businesses (regular invoices, VAT) | £150 – £350 |
| Medium-size businesses | £350 – £700+ |
Why choose monthly packages?
You get consistent support, monthly reports, and a clear system. Plus, bookkeepers often give discounts for long-term contracts.
Cost Based on Transaction Volume
Another common pricing model is per-transaction or volume-based pricing. Bookkeepers look at how many invoices, receipts, or entries you generate each month.
- Up to 50 transactions/month: £50 – £120
- 50–150 transactions/month: £120 – £250
- 150–300 transactions/month: £250 – £450
- 300+ transactions: £450 – £800+
This model is practical because it directly reflects workload.
Ad-On Costs You Should Know About
Bookkeeping is rarely one single task. There are extras that may increase pricing slightly. Here’s what usually gets added on:
Payroll Processing
- £5 – £10 per payslip
- Or £20 – £50 per month depending on staff count
VAT Returns
- £30 – £75 per return
- Sometimes included in monthly packages
Year-End Accounts Prep
- £150 – £500 depending on complexity
Catch-Up or Cleanup Work
If your books haven’t been updated in months, expect a one-time cleanup fee:
- £150 – £1000 (based on time required)
Software Subscription
If your bookkeeper requires software such as Xero or QuickBooks:
- £15 – £40 per month (unless included)
These add-ons aren’t always charged separately, but it’s good to be aware, so you’re not surprised later.
What Influences the Cost of Bookkeeping Most?
When you look at different bookkeeping quotes, it’s easy to wonder why one business pays £80 a month while another pays £400. The truth is, bookkeepers don’t use a one-size-fits-all approach. They look at your business from a few angles — almost like a mechanic checking under the hood before giving a repair estimate.
Here are the five biggest factors that shape bookkeeping costs in the UK, explained in a way that makes everything feel clearer and more connected.
1. Transaction Volume (The Biggest Cost Driver)
Think of every financial transaction as a tiny task your bookkeeper must review, categorise, and reconcile.
More transactions = more time = higher cost.
If your business deals with only 30–40 invoices a month, the workload is light. But for businesses with 200+ entries — purchases, sales, refunds, payouts, fees — the time adds up quickly.
Bookkeepers usually don’t charge for the “size” of your business. They charge for how many entries they have to clean up and keep accurate each month. That’s why transaction volume often becomes the clearest indicator of pricing.
2. VAT Registration (Adds Extra Layers of Work)
The moment a business registers for VAT, bookkeeping becomes more detailed. It’s not just about recording numbers anymore — it’s about tracking VAT correctly on every sale and every purchase.
A VAT-registered business needs the bookkeeper to handle:
- VAT on outgoing invoices
- VAT on expenses
- Adjustments and exceptions
- Quarterly VAT returns
- Digital submissions under Making Tax Digital (MTD)
Even a simple bookkeeping setup becomes more complex once VAT enters the picture. That’s why VAT-registered businesses often pay a little more — there’s simply more compliance and checking involved.
3. Payroll (Even One Employee Increases Workload)
Payroll isn’t just “sending salaries.” Behind the scenes, there are multiple moving parts every month:
- Recording gross and net pay
- Tracking PAYE and National Insurance
- Filing reports to HMRC
- Adding payroll expenses into the books
Even if you have just one or two employees, payroll adds recurring tasks that your bookkeeper must manage. And if you have a full team, the workload grows considerably.
This is why businesses with payroll always see slightly higher bookkeeping costs compared to those without staff.
4. Your Industry (Some Are Naturally More Complex)
Not all industries operate in the same way, and bookkeepers have to adapt their work based on how your business earns and spends money. Some industries come with extra complexities, more data, and more reconciliations.
Here are a few examples:
Construction (CIS)
Construction bookkeeping often involves the Construction Industry Scheme (CIS). Your bookkeeper must track deductions, verify subcontractors, and ensure compliance — all of which require extra time and accuracy.
E-commerce
E-commerce bookkeeping can get complicated quickly because of:
- Multiple sales channels (Shopify, Amazon, Etsy)
- Payment gateways (PayPal, Stripe, Razorpay)
- Refunds and chargebacks
- Marketplace fees
- High transaction volume
Reconciling these platforms takes more effort than traditional service-based businesses.
Hospitality
Restaurants, cafés, and hotels deal with:
- Daily POS readings
- Tips and service charges
- Inventory
- Multiple suppliers
- High cash flow movement
This creates more bookkeeping touchpoints each month.
Healthcare
Clinics, physiotherapists, and consultants often deal with insurance claims, reimbursements, and strict compliance, which again increases the time needed for accurate bookkeeping.
In short: some industries naturally require more detailed attention, which affects pricing.
5. Quality of Your Records (Good Organization Saves Money)
Imagine two businesses:
Business A: They use digital invoicing, upload all receipts, and send everything on time.
Business B: They hand over crumpled receipts, missing invoices, and months of paperwork at once.
Even if both businesses have the same transaction volume, Business B will pay more — simply because the bookkeeper needs extra time to untangle, sort, and clean the data.
Here’s what impacts cost:
- How organised your receipts are
- Whether documents are submitted on time
- If you use accounting software (Xero / QuickBooks)
- Whether the bookkeeper needs to fix previous errors
- How clean your past records are
Bookkeepers love clients who stay organised — it makes their job smoother and keeps your cost low.
In Simple Words…
Bookkeeping costs rise when something increases time, complexity, or compliance.
If your business has:
- high transaction volume,
- VAT,
- payroll,
- industry-specific requirements, or
- messy records,
you’ll naturally pay a bit more.
But the good part? A good bookkeeper saves you hours every month, keeps you HMRC-compliant, and gives you clean financial data you can trust — which is worth far more than the monthly fee.
Final Thoughts
The cost of bookkeeping services in the UK depends on the size of your business, transaction volume, and the level of support you need. While hiring a bookkeeper feels like an expense at first, it often saves far more money in the long run by avoiding errors, penalties, and financial confusion.
Whether you’re a sole trader or a growing limited company, choosing a professional bookkeeper gives you clarity, stability, and the freedom to focus on what truly matters — growing your business.
