How Much Do Bookkeepers Charge in the UK? Bookkeeping Services Cost Explained 2026

Keeping good financial records is one of the most important parts of running a business in the UK. Clear books help you understand profit, cash flow, and tax. They also give you peace of mind when HMRC asks questions. Many business owners try to do it all themselves at first. Soon, they realise the work takes time, can feel confusing, and mistakes can become costly.

That is why many people choose to hire a bookkeeper. But how much do bookkeepers charge in the UK, and what are you really paying for?

In this guide, we give a simple, honest breakdown of bookkeeping costs in the UK for 2025 to 2026. We explain what bookkeepers do, how pricing works, and what affects the final fee. Our goal is to help you choose a service that suits both your business and your budget.

Average Bookkeeping Services Cost in the UK (2025–2026) 

For 2025–2026, most UK small businesses can expect to pay between £20 and £55 per hour for bookkeeping services, or £120 to £500 per month on average, depending on workload and complexity.

For very small businesses and sole traders, entry-level packages often start from £80 per month, while growing companies that need VAT support, payroll, or more frequent reporting typically pay £300 to £900+ per month.

London and larger cities sit at the higher end of these ranges, while regional firms are usually more affordable, but experience, technology, and quality of service often matter more than geography.

These figures represent realistic market ranges rather than fixed prices. Your final cost will depend on transaction volume, the software used, how often your books are updated, and whether your bookkeeper also provides advisory support.

Bookkeeping Rates Per Hour UK

Across the UK, most bookkeepers charge an hourly rate. For 2025 to 2026, typical hourly fees range from £20 to £55 per hour.

Lower rates usually come from new or less experienced bookkeepers. Higher rates often reflect greater experience, advanced software skills, and more complex work.

Hourly pricing works well for short term tasks or when the scope is uncertain. But it can be harder to predict total costs.

Self-Employed Bookkeeper Hourly Rate UK

Self employed or freelance bookkeepers often charge £22 to £40 per hour. They may work from home or remotely, which can keep costs lower than hiring staff.

You may find more flexibility, but quality can vary. Always ask about:

• Qualifications
• Years of experience
• Types of clients they have supported
• Insurance cover

A cheaper hourly rate might seem appealing. However, if work takes longer or mistakes happen, the real cost can be higher.

Bookkeeper Hourly Rate London vs Other UK Cities

Location still matters. Living and business costs are higher in London, so fees often reflect that.

• London: £30 to £55 per hour
• Major cities such as Manchester, Birmingham, Leeds, Bristol: £25 to £45 per hour
• Smaller towns and rural areas: £20 to £35 per hour

Even with remote working, many London based bookkeepers charge premium rates due to local demand and expertise.

Bookkeeping Services Cost Per Month

Many businesses prefer monthly packages. These provide clearer budgets and steady support.

Typical monthly costs might look like this:

• Sole trader with low transactions
  £80 to £150 per month
• Small limited company
  £120 to £300 per month
• Growing business with VAT
  £250 to £600 per month
• Larger small businesses with payroll and regular reporting
  £500 to £1,000 or more per month

The exact price depends on how much work is needed, how often records are updated, and whether add on services are included.

Bookkeeping Rates 2026: What’s Changed?

Over the past few years, bookkeeping rates have risen slowly. There are a few reasons:

• Higher software subscription costs
• Increased wage expectations across the UK
• More regulation around tax and reporting
• Greater demand for digital records and cloud systems

While costs have gone up, many bookkeepers now offer better tools, online portals, and faster turnaround times. For most businesses, the value gained still outweighs the price.

Understanding Bookkeeping Services and Costs 

Before looking at prices, it helps to understand what bookkeeping includes and how it differs from other accounting services.

What Is Bookkeeping?

Bookkeeping is the process of recording every financial transaction in your business. This includes money coming in and money going out. The information is sorted into clear categories so that reports can be created later.

In simple terms, bookkeeping is about keeping your financial story neat, accurate, and ready when needed.

Good bookkeeping helps you:

• See how your business is performing
• Keep on top of invoices and bills
• Prepare for VAT returns
• File taxes correctly
• Avoid penalties and late fees

Without it, decisions become guesses, and small mistakes can grow into bigger problems.

What Does a Bookkeeper Do for a UK Business?

A bookkeeper looks after your day to day financial records. Their work often includes:

• Recording income and expenses
• Reconciling bank statements
• Managing supplier bills and customer invoices
• Tracking payments and receipts
• Preparing basic financial reports
• Helping with VAT records
• Supporting your accountant at year end

They do not usually handle complex tax planning or detailed financial forecasting. That part is often done by an accountant. But bookkeeping lays the foundation. If the books are clean, everything else runs smoother.

Bookkeeper vs Accountant vs Chartered Accountant

It is easy to mix these roles up. Here is a simple way to think about it:

• Bookkeeper
  Records and organises daily financial data. Keeps records tidy and up to date.
• Accountant
  Reviews the records, prepares financial statements, and advises on tax and business performance.
• Chartered Accountant
  An qualified chartered accountant in London with advanced qualifications and membership of a professional body. Often deals with more complex matters such as audits, corporate tax planning, and strategic advice.

Many UK businesses use both a bookkeeper and an accountant. The bookkeeper saves time and keeps costs down. The accountant steps in when deeper advice is required.

Bookkeeping Pricing Models Explained 

Understanding pricing structures helps you choose the right option.

Hourly Bookkeeping Rates

Hourly rates are simple. You pay for the exact time spent.

Pros

• Flexible
• Good for one off tasks
• Easy to start with

Cons

• Hard to predict final costs
• Can become expensive if tasks take longer
• No incentive to work faster

Hourly billing works best when you have short term or occasional needs.

Fixed Monthly Bookkeeping Packages

With fixed monthly pricing, you pay a set fee each month. This usually covers an agreed list of services.

Pros

• Clear and predictable costs
• Encourages regular bookkeeping
• Often includes support and advice

Cons

• Extra work outside the plan may cost more
• Not ideal if your activity changes sharply

Most growing UK businesses choose monthly packages because they support planning and cash flow.

Project-Based and Ad Hoc Pricing

Some bookkeeping jobs are one off projects. Examples include:

• Catching up a backlog of records
• Cleaning messy books
• Preparing for an HMRC check
• Setting up cloud accounting software

These are often priced per project or at a fixed fee after reviewing the work. Costs can vary widely depending on complexity.

Bookkeeping Services Price List UK (Typical Inclusions)

A standard bookkeeping package might include:

• Recording all transactions
• Bank and card reconciliations
• Sales and purchase ledger management
• Basic month end reporting
• VAT preparation support
• HMRC ready records

Optional add ons may include:

• Payroll
• CIS support
• Credit control
• Stock tracking
• More detailed management reports

Always ask for a written service list so you know exactly what is included.

Factors That Affect the Cost of Bookkeeping Services 

Bookkeeping prices are not the same for every business. Two companies may pay very different amounts, even if they are in the same town. Your cost depends on how much work is needed, how often the books are updated, and the level of skill your bookkeeper provides.

Below are the main factors that usually affect bookkeeping prices in the UK.

Size and Complexity of Your Business

The bigger and more complex the business, the more time bookkeeping takes. Key drivers include:

• Number of bank accounts
• Number of invoices and receipts
• Whether you trade internationally
• If you have staff or contractors

A small local shop will pay less than a multi site online business. Clear processes help control costs.

Industry and Transaction Volume

Some industries create more records than others. For example:

• Retail and e-commerce often have high volumes of small transactions
• Construction may involve project costing and CIS
• Professional services often have fewer invoices but higher values

Bookkeepers price based on how long it takes to manage this activity each month.

Location of Your Bookkeeper

Where your bookkeeper is based can influence cost. Local expertise can sometimes justify higher fees, especially in cities where regulations and expectations may feel stricter.

Estimated Average Costs Across UK Cities

Here is a rough idea of how average monthly packages might differ:

• London: £250 to £700
• Manchester: £180 to £550
• Birmingham: £170 to £500
• Leeds: £160 to £480
• Glasgow: £160 to £450

These are averages only. Your actual price will depend on your workload and service level.

Experience, Qualifications, and Certifications

More experienced bookkeepers often work faster and make fewer errors. Those with formal training or membership of professional bodies usually charge more, but they bring reassurance and structure.

Paying slightly more for reliable expertise can save stress, tax issues, and future clean up costs.

Software Expertise and Subscription Costs

Modern bookkeeping relies heavily on cloud systems. Subscription fees are often included in your package, or charged separately.

Costs can rise if:

• You need several add ons
• You use premium reporting tools
• You require integration with e-commerce or stock systems

Digital records are also important for compliance with Making Tax Digital. You can read more about record keeping rules on the UK government website here:
https://www.gov.uk

Frequency of Bookkeeping Work

If your books are updated weekly, fees will be higher than if updates are monthly. More frequent work means:

• Better cash flow visibility
• Faster reports
• Fewer big catch ups

Most businesses choose monthly support, and then move to weekly as they grow.

Different Types of Bookkeepers and Their Impact on Costs

Not all bookkeepers work in the same way. Some are self-employed, some work as part of a larger team, and some are hired as staff inside a business. Each option has different costs and different benefits.

Understanding the types of bookkeepers available can help you choose the right fit for your budget and needs.

Freelance Bookkeepers

Freelancers usually work with several clients at once. They often provide:

• Flexible hours
• Lower overheads
• Direct communication

They may not always have backup staff if they become busy or unwell. Quality can vary depending on training and systems.

Bookkeeping Agencies

Agencies have teams of bookkeepers. They can handle larger volumes and offer wider services.

Advantages include:

• Cover during holidays or sickness
• Set processes and reviews
• Access to extra support when needed

The trade off is that agency packages can cost more than hiring a freelancer.

In-House Bookkeepers

Larger businesses sometimes hire a bookkeeper as an employee. This provides full control and daily access.

However, the true cost is more than a salary. You must also consider:

• Employer National Insurance
• Holiday pay
• Training
• Software and equipment

In house works best when the workload is consistent and significant.

Case Study: Comparing Costs Across Bookkeeper Types

Imagine a VAT registered limited company turning over £400,000 per year. It has around 300 transactions each month and two staff members.

Here is how costs might look:

Freelance bookkeeper

• £300 to £450 per month
• Uses cloud software
• Works remotely
• Good for steady, regular tasks

Bookkeeping agency

• £450 to £700 per month
• Includes reviews and support team
• Faster response times
• Useful when business is growing

In house bookkeeper

• £22,000 to £28,000 per year plus costs
• On site and fully dedicated
• Requires management supervision
• Best when workload is full time

For many small UK businesses, freelance or agency support offers the best balance of cost and reliability.

Bookkeeping vs In-House Hiring: The True Cost Comparison

When deciding how to manage your books, you usually have two main choices. You can use an external bookkeeping service, or you can employ someone directly. Both approaches have benefits. However, the true cost is not always obvious at first glance.

The key question to ask is simple. Which option gives you reliable, accurate records at a price your business can sustain?

The Hidden Cost of In-House Bookkeeping

Many business owners assume that hiring a bookkeeper in-house is cheaper. You pay a salary, the work gets done, and everything stays under one roof. But in reality, the true cost includes far more than the monthly wage.

Additional costs include:

• Recruitment fees or advertising
• Training and professional development
• Employer National Insurance contributions
• Pension contributions
• Holiday and sick pay
• Payroll administration
• Software subscriptions and licensing
• Computers, equipment, and workspace

There is also the cost of your own time. Managing, supporting, and supervising staff takes effort. If that time pulls you away from income-generating work, the hidden cost can be significant.

If the workload drops, you still pay the same salary. If the employee leaves, you start the process all over again. For many small employers, this level of commitment can be difficult to justify.

Outsourced Bookkeeping vs In-House: Which Is More Cost-Effective?

Outsourced bookkeeping is often more flexible. You only pay for what you need, and support can scale up or down as your business changes.

With outsourcing, you benefit from:

• Access to a wider range of skills
• Cover during holidays or illness
• Up-to-date software already included
• No employment administration
• No long-term staffing commitments

Outsourcing is particularly cost-effective for:

• Sole traders
• Start-ups
• Micro companies
• Growing small businesses that do not yet need full-time help

In-house hiring usually becomes cost-effective only when bookkeeping becomes a daily, full-time requirement. For most UK businesses, outsourcing saves both money and management time, while still delivering professional results.

The Impact of Technology on Bookkeeping Costs

Technology has completely reshaped modern bookkeeping. What once required hours of manual entry can now be completed in minutes. This change has driven greater accuracy, faster turnaround, and in many cases, lower fees.

Technology does not replace bookkeepers. Instead, it frees them from repetitive tasks so they can focus on quality control, advice, and support.

Cloud-Based Bookkeeping and Cost Efficiency

Cloud accounting systems store your records securely online instead of on a single computer. You and your bookkeeper can access information at any time, from any location.

This reduces costs because:

• There is no need for local servers or storage
• Software updates happen automatically
• Lost receipts can be photographed instead of replaced
• Documents are easier to share and review

Cloud systems also make audits and HMRC checks smoother, because everything is organised and accessible.

Automation and Artificial Intelligence in Bookkeeping

Automation tools read bank transactions, scan receipts, and suggest categorisations. Artificial intelligence can recognise patterns and highlight anything unusual.

For example:

• A receipt app captures and stores expense documents
• Bank feeds import transactions automatically
• Matching tools pair invoices to payments
• Alerts notify your bookkeeper of missing records

These systems do not remove the need for human oversight. Instead, they reduce repetitive work and minimise the chance of human error.

Technology-Driven Bookkeeping Packages

Modern bookkeeping packages often include:

• Receipt capture
• Online invoicing
• Payment reminders
• Digital approval flows
• Simple dashboards showing profits and cash flow

Some services include free onboarding and training so you can understand how the tools work. Others offer premium add-ons such as detailed forecasting or cash flow apps.

Technology has allowed bookkeepers to deliver more value without dramatically increasing their prices.

How Technology Is Reducing Bookkeeping Costs for UK Small Businesses

In the past, keeping books meant piles of paper, filing cabinets, and manual calculators. Today, most tasks happen digitally.

As a result:

• Less time is spent sorting paperwork
• Errors are spotted earlier
• VAT and tax data is easier to prepare
• Reports can be produced regularly instead of once a year

Technology has made professional bookkeeping more affordable, and has opened access to services that were once only available to larger companies.

Specific Types of Bookkeeping Services and Their Prices

Different businesses need different levels of bookkeeping. Understanding the main service types helps you estimate realistic costs.

VAT Bookkeeping and MTD Compliance Costs

VAT adds another layer of responsibility. Every transaction must be recorded correctly so VAT returns are accurate.

Extra tasks include:

• Checking VAT receipts
• Applying the correct VAT rate
• Recording reverse charges where required
• Preparing VAT return summaries
• Ensuring digital record-keeping under Making Tax Digital

The added complexity means fees usually increase slightly. Businesses with multiple VAT schemes or international sales may pay more due to additional checks.

Payroll Bookkeeping Costs

Payroll involves more than calculating wages. Your bookkeeper may also handle:

• Real Time Information submissions
• Pension auto-enrolment
• Holiday pay tracking
• Statutory payments
• End of year submissions

Because payroll is time-sensitive, accuracy and punctuality are essential. Pricing usually depends on the number of employees and the complexity of payments.

Year-End and Catch-Up Bookkeeping Pricing

If your books fall behind, catch-up work can take time. Your bookkeeper must review past months, correct entries, and reconcile accounts.

This is often priced on a project basis. Costs depend on how far behind the records are and how many corrections are needed. Once everything is up to date, monthly bookkeeping becomes easier and cheaper to maintain.

Signs You’re Ready to Hire a Bookkeeper

Many business owners wait longer than they should before seeking help. Recognising the signs early can save stress and prevent penalties.

Your Business Is Growing

Growth means more transactions, more paperwork, and more responsibility. What once took one hour per week may soon take several evenings.

A bookkeeper helps keep your business organised while you focus on sales, service, and strategy.

You’re Spending Too Much Time on Financial Admin

If bookkeeping is cutting into family time, customer time, or planning time, it is costing more than you realise.

A simple rule works well. If a bookkeeper can do the job faster than you, the investment usually pays for itself.

Errors or Compliance Risks Are Increasing

Mistakes with HMRC can be stressful and expensive. A professional bookkeeper puts processes in place so records are accurate and well documented.

This reduces the risk of fines, missed deadlines, and tax worries.

You Need Better Financial Visibility

Up-to-date records help answer key questions:

• Can I afford new staff?
• Should I increase prices?
• Is my cash flow stable?

Without clear data, decisions become guesswork. A bookkeeper ensures your numbers are ready when you need them.

How to Find Affordable and Reliable Bookkeeping Services

Choosing the right bookkeeper takes care and research. You are trusting someone with sensitive financial information, so the relationship should feel professional and supportive.

How to Compare Bookkeeping Quotes

When comparing quotes, avoid focusing on cost alone. Look at the full service offering.

Ask questions such as:

• How often will you review my books?
• What software do you use?
• Do you provide management reports?
• What happens if my workload increases?

Quotes that seem very cheap often leave out important elements such as support or reviews.

What to Look for Beyond Price

Reliability is just as important as affordability. Good bookkeepers should be:

• Organised
• Responsive
• Honest
• Easy to talk to

They should explain things in plain English rather than confusing jargon. You should feel comfortable asking simple questions.

Cheap vs Good Bookkeeping: Avoiding False Savings

Low-cost services may cut corners. Common issues include:

• Incomplete records
• Missed reconciliations
• Poor communication
• Lack of backups or processes

Fixing these problems later often costs more than paying for quality support from the start.

Choosing the Right Bookkeeping Service Provider in the UK

Finding the right provider is not just a one-time decision. It affects your entire financial system.

Step 1: Determine Your Bookkeeping Needs

Start by listing the tasks you need help with. Consider:

• Invoicing
• Expenses
• VAT
• Payroll
• Reporting

Clear expectations make it easier to choose the right package.

Step 2: Assess Qualifications and Experience

Experience matters. A bookkeeper who understands your industry can often work faster and provide more useful insights.

Step 3: Understand Pricing Models Clearly

Ask for a breakdown of what each package includes. Clarify any extra charges so there are no surprises later.

Step 4: Outsourcing vs In-House Bookkeeping

Think about the long-term picture. Outsourcing usually offers flexibility and value. In-house may suit larger operations with steady, daily needs.

Step 5: Look for Long-Term Value and Scalability

Your bookkeeping needs will change as your business grows. Choose a provider that can adapt rather than force expensive upgrades.

FAQS

What Is the Average Cost of Bookkeeping Services in the UK?

For most small UK businesses, bookkeeping usually costs between £20 and £55 per hour or around £120 to £500 per month.

The final price depends on how many transactions you have, whether you need VAT support, and how often your books are updated.

How Much Does a Bookkeeper Cost Per Month?

Most UK small businesses pay between £120 and £500 per month for bookkeeping services.
Very small or simple businesses may pay closer to £80 per month, while growing companies with payroll or VAT often pay £300 to £900+ per month.

How Much Does Hourly Bookkeeping Cost in the UK?

Hourly bookkeeping in the UK usually costs from £20 to £55 per hour.
Freelancers tend to be at the lower end, and more experienced or specialist bookkeepers may charge at the higher end.

Is Outsourced Bookkeeping Cheaper Than Hiring In-House?

In most small business situations, yes. Outsourcing removes salary obligations and reduces software, training, and HR costs.

How Often Should Bookkeeping Be Done for a Small Business?

Monthly bookkeeping is the minimum. Weekly updates are ideal for growing companies or those managing tight cash flow.

Do I Need a Bookkeeper or an Accountant?

A bookkeeper maintains your daily financial records. An accountant uses that information to prepare tax returns and offer advice. Together, they form a strong financial team.

Is Cloud-Based Bookkeeping Safe for UK Businesses?

Reputable systems use encryption, secure backups, and strong privacy protections. As with any online tool, good password management is essential.

Can a Bookkeeper Handle VAT Returns and MTD Compliance?

Yes, many bookkeepers manage VAT records and submissions, as long as they are trained and familiar with MTD rules.

What Should I Look for When Choosing a UK Bookkeeper?

Look for professionalism, clarity, proven experience, and good communication. The right bookkeeper should make your financial life feel simpler, not harder.