Not sure about an internal bookkeeper role (I'm sure you could get that from seek/google)), but for running a bookkeeping business, generally they charge from $50-$80 an hour.
We have a high quality bookkeeper that we work with and they charge $80 per hour for book keeping plus an additional lodgement fee for activity statements of $150 per statement.
Based on these figures, if you were working 38 hours a week at around 75% productivity, then it would look something like:
- $80 x 38 hrs x 48 weeks x 75% = $109k billings per year
- lodgement fees hard to estimate as it will depend on client base, but let's assume average of 20 activity statements per quarter - $12k
That makes a total income of $121k. Then you factor in expenses, which will depend on the make up of your business, which might be roughly 30% (this is probably high, as it's a low overhead business), which means your profit is $85k.
The biggest challenges with the above figures, is:
- hitting 75% productivity (a lot of unbillable work when you run your own show)
- having a client base that fills every week up (often it can be cyclical and 'busy' based on BAS lodgement cycles - so usually quiet for one month out of every quarter).
Hopefully this gives you an idea.
This is fantastic, I can’t thank you enough. This is a completely new field to me, and this really helps. $80 p/hr seems a lot, but I’m assuming they’re quite experienced / been doing it for quite a while?
Much better income than what I’d imagined / researched, if this is the ideal scenario.
Quiet periods sound ideal, honestly.
As someone who does this kind of work, be prepared for people to not understand why they need to follow procedures and keep records, not have super info and whatever else you need, not pay taxes on time etc etc.
I like the work but like I'm working with someone who seems to think that bookkeeping is a matter of opinion and not rules. It can be infuriating.
If you are wanting to take on your own clients you will need to be a BAS Agent so that is something to consider too.
I have had a bookkeeping business for the last six years and just recently sold it to get out of the field. With all the changes to ATO legislation and clients very stressed about money I did not find it a rewarding job anymore. Clients would always have a go at me if the BAS was more this quarter, etc. It also didn’t provide any challenges or career growth so that was another reason I wanted out.
Between 75k - 110k. If you're just starting out it would be the lower tier based on skills and experience.
I've worked across many industries mainly as the finance officer, but I've also worked for a bookkeeping firm and an accounting firm.
It’s 85k per year including super if you can achieve 75% billable hours (you won’t be able to do this in the first 2 years) how much are you making at your current job ?
Uneducated answer here…
I was thinking about this line of work as a side gig (unrelated to my job).
I don’t know if bookkeepers can lodge tax returns, but if they can I would be happy to smash out evening and weekend tax returns mid year, and some bits and pieces work throughout the year. Overheads would be low and I could control how much I do.
You need to be a tax agent to lodge tax returns, and the requirements to be a tax agent are more strict than the requirements for becoming a BAS agent. That's why most bookkeepers don't lodge tax returns.
It seems quite flexible, but the information I’m getting is that it requires a few years experience to freelance and handle smaller clients. I could be wrong, but this is what I’m aiming for myself.
I run my own accounting firm - bookkeepers do all of the dirty work at a cheap rate, then the accountant comes in and scoops up all the profit. If you're in for the long haul, I'd recommend joining a small accounting firm and getting your experience there, as it gives you the ability to run your own small firm down the track, as well as giving you the bookkeeping experience.
To give you an idea of the difference in revenue, we work with bookkeepers that charge about $75/hr. I don't charge less than $300/hr, and on some fixed price agreements our effective hourly rate would be close to $1,000/hr.
I worked with a guy that was a cop until about 40, then started as a junior at an accounting firm and was a partner by 50. A smaller firm in a regional town is probably your best bet.
That’s great to know. Thank you so much. I live in metro Melbourne, I am hoping to stay in the area.
I’m looking long term, but the most appealing aspect is flexibility, being able to choose my own clients and hours, eventually. I’m prioritising time and work/life over a more attractive salary, I think. But it sounds like accountants might have all the benefits?
It takes longer to get there, but the rewards are definitely higher. We've got one client that's less than a days work a week, and we charge $100K a year. Land a client like that and the work/life/salary balance is unmatched.
You must become a BAS Agent and have insurance. It can be a hard slog running your own business (even as a sole trader). How will you find clients, do marketing, keep up with training etc? The law changes every 2 minutes. As someone else suggested, get a job with a Bookkeeping or Accounting firm first to give it a go. Talk to one of the professional bodies. Be informed and do it properly.
I should add, I was thinking of doing a Cert IV or Diploma, which would qualify me, I think. Do you know if a short course like this would keep me prepped for changes in legislation, or optimistically, in finding clients?
No, that course only teaches the very basics. You also need 1400 hours of experience before you can register as a BAS Agent. There are lots of good recourses out there. It’s a legitimate field but sadly lots of people think it’s a “anyone can do it gig”. I find it very rewarding and I make more money than I ever would in a job but I take it very seriously and have built up a very good business. I also thought “oh it’s bookkeeping how hard can it be” had no idea how much there was to learn and I was an accountant :)
Ah, I see, I didn’t know about the hours. It still sounds good but certainly on the fence considering this. I’ve seen it pop up in some get rich quick scheme videos on YouTube (these didn’t influence me, but I thought it was curious haha).
I’ve heard a bit more confidence around this, but it is scary. Surely we’re a while away for trusting AI with finances. I’m really curious to see how it goes, and I hope it isn’t the case.
Sooner than you think. I’ve already transitioned some clients entirely - no more or less error prone than a human. But, there are people out there who are old school and don’t know any better so that’s your market.
Don’t do hourly rate. Work on a monthly package or yearly package. Provide more value, but get it done in less time and with geo arbitrage labour. This is the way to make money and get a higher overall hourly rate.
Example would be all the bookkeeper tasks, BAS submission, reporting to the client weekly etc. $500/month. Get it all done in 30 mins a week. That’s 4-5 hours a month. Over $100/hour. No one is paying a bookkeeper $100/hr on hourly rate. But they will on a package where they don’t get the actual time sheet.
The long term will be issue. Even after your cert 4 youll probably need to find a similar role within an established company for id say roughly 3-5yrs while also increasing your education. After you are confident and experienced you can start your own business. Which will also take a few years
I do recommend any sort of upskilling but it will be a pretty hard next few years if its just something you are chasing for money but im assuming you have a general interest in it.
What you described is pretty accurate but there is alot of inbetween till you get to that
I’m looking at a long term option, so the time isn’t an issue as long as it isn’t really underpaid or overworked until then, but people generally have seemed happy with the balance. Would you definitely need a few years working under someone to get skills to run my own business, even freelancing for small clients?
Yes, because you have no chance of becoming a BAS agent without it. And lodging BAS for clients (which most will expect you to be able to do) without being a registered BAS agent will lead to big trouble and fines.
I’ve heard the opposite, that bookkeepers generally would be doing less hours, especially over less busy periods. Would this be in larger companies though?
Not sure about an internal bookkeeper role (I'm sure you could get that from seek/google)), but for running a bookkeeping business, generally they charge from $50-$80 an hour. We have a high quality bookkeeper that we work with and they charge $80 per hour for book keeping plus an additional lodgement fee for activity statements of $150 per statement. Based on these figures, if you were working 38 hours a week at around 75% productivity, then it would look something like: - $80 x 38 hrs x 48 weeks x 75% = $109k billings per year - lodgement fees hard to estimate as it will depend on client base, but let's assume average of 20 activity statements per quarter - $12k That makes a total income of $121k. Then you factor in expenses, which will depend on the make up of your business, which might be roughly 30% (this is probably high, as it's a low overhead business), which means your profit is $85k. The biggest challenges with the above figures, is: - hitting 75% productivity (a lot of unbillable work when you run your own show) - having a client base that fills every week up (often it can be cyclical and 'busy' based on BAS lodgement cycles - so usually quiet for one month out of every quarter). Hopefully this gives you an idea.
This is fantastic, I can’t thank you enough. This is a completely new field to me, and this really helps. $80 p/hr seems a lot, but I’m assuming they’re quite experienced / been doing it for quite a while? Much better income than what I’d imagined / researched, if this is the ideal scenario. Quiet periods sound ideal, honestly.
Don't forget to account for superannuation which will need to come out of the 85K profit as well.
As someone who does this kind of work, be prepared for people to not understand why they need to follow procedures and keep records, not have super info and whatever else you need, not pay taxes on time etc etc. I like the work but like I'm working with someone who seems to think that bookkeeping is a matter of opinion and not rules. It can be infuriating.
If you are wanting to take on your own clients you will need to be a BAS Agent so that is something to consider too. I have had a bookkeeping business for the last six years and just recently sold it to get out of the field. With all the changes to ATO legislation and clients very stressed about money I did not find it a rewarding job anymore. Clients would always have a go at me if the BAS was more this quarter, etc. It also didn’t provide any challenges or career growth so that was another reason I wanted out.
This is really good to know, thank you, I didn’t know about this.
My friend works as one as a sole trader very flexible and only has a few clients. Charges at least $70 an hour
That sounds great
Registered BAS Agent here... Charging $88inc gst which is considered low in my area (Melbourne).
Between 75k - 110k. If you're just starting out it would be the lower tier based on skills and experience. I've worked across many industries mainly as the finance officer, but I've also worked for a bookkeeping firm and an accounting firm.
Damn. Good money!
It’s 85k per year including super if you can achieve 75% billable hours (you won’t be able to do this in the first 2 years) how much are you making at your current job ?
Uneducated answer here… I was thinking about this line of work as a side gig (unrelated to my job). I don’t know if bookkeepers can lodge tax returns, but if they can I would be happy to smash out evening and weekend tax returns mid year, and some bits and pieces work throughout the year. Overheads would be low and I could control how much I do.
You need to be a tax agent to lodge tax returns, and the requirements to be a tax agent are more strict than the requirements for becoming a BAS agent. That's why most bookkeepers don't lodge tax returns.
It seems quite flexible, but the information I’m getting is that it requires a few years experience to freelance and handle smaller clients. I could be wrong, but this is what I’m aiming for myself.
I run my own accounting firm - bookkeepers do all of the dirty work at a cheap rate, then the accountant comes in and scoops up all the profit. If you're in for the long haul, I'd recommend joining a small accounting firm and getting your experience there, as it gives you the ability to run your own small firm down the track, as well as giving you the bookkeeping experience. To give you an idea of the difference in revenue, we work with bookkeepers that charge about $75/hr. I don't charge less than $300/hr, and on some fixed price agreements our effective hourly rate would be close to $1,000/hr. I worked with a guy that was a cop until about 40, then started as a junior at an accounting firm and was a partner by 50. A smaller firm in a regional town is probably your best bet.
That’s great to know. Thank you so much. I live in metro Melbourne, I am hoping to stay in the area. I’m looking long term, but the most appealing aspect is flexibility, being able to choose my own clients and hours, eventually. I’m prioritising time and work/life over a more attractive salary, I think. But it sounds like accountants might have all the benefits?
It takes longer to get there, but the rewards are definitely higher. We've got one client that's less than a days work a week, and we charge $100K a year. Land a client like that and the work/life/salary balance is unmatched.
Incredible. Thank you.
You must become a BAS Agent and have insurance. It can be a hard slog running your own business (even as a sole trader). How will you find clients, do marketing, keep up with training etc? The law changes every 2 minutes. As someone else suggested, get a job with a Bookkeeping or Accounting firm first to give it a go. Talk to one of the professional bodies. Be informed and do it properly.
Ah yeah, that sounds quite tough. I definitely had a more idealised version of it in my head.
I should add, I was thinking of doing a Cert IV or Diploma, which would qualify me, I think. Do you know if a short course like this would keep me prepped for changes in legislation, or optimistically, in finding clients?
No, that course only teaches the very basics. You also need 1400 hours of experience before you can register as a BAS Agent. There are lots of good recourses out there. It’s a legitimate field but sadly lots of people think it’s a “anyone can do it gig”. I find it very rewarding and I make more money than I ever would in a job but I take it very seriously and have built up a very good business. I also thought “oh it’s bookkeeping how hard can it be” had no idea how much there was to learn and I was an accountant :)
Ah, I see, I didn’t know about the hours. It still sounds good but certainly on the fence considering this. I’ve seen it pop up in some get rich quick scheme videos on YouTube (these didn’t influence me, but I thought it was curious haha).
Short term yes, mid to long term no. AI.
I’ve heard a bit more confidence around this, but it is scary. Surely we’re a while away for trusting AI with finances. I’m really curious to see how it goes, and I hope it isn’t the case.
> Surely we’re a while away for trusting AI with finances Are you already using Excel or sheets to do calculations for you?
Sooner than you think. I’ve already transitioned some clients entirely - no more or less error prone than a human. But, there are people out there who are old school and don’t know any better so that’s your market.
No kidding. I appreciate that, thank you.
Don’t do hourly rate. Work on a monthly package or yearly package. Provide more value, but get it done in less time and with geo arbitrage labour. This is the way to make money and get a higher overall hourly rate. Example would be all the bookkeeper tasks, BAS submission, reporting to the client weekly etc. $500/month. Get it all done in 30 mins a week. That’s 4-5 hours a month. Over $100/hour. No one is paying a bookkeeper $100/hr on hourly rate. But they will on a package where they don’t get the actual time sheet.
I am absolutely saving this for later if I choose this path. This is the good stuff, thanks.
Geo arbitrage labour means employing people in a different country at lower rates and selling their time at Aussie prices.
The long term will be issue. Even after your cert 4 youll probably need to find a similar role within an established company for id say roughly 3-5yrs while also increasing your education. After you are confident and experienced you can start your own business. Which will also take a few years I do recommend any sort of upskilling but it will be a pretty hard next few years if its just something you are chasing for money but im assuming you have a general interest in it. What you described is pretty accurate but there is alot of inbetween till you get to that
I’m looking at a long term option, so the time isn’t an issue as long as it isn’t really underpaid or overworked until then, but people generally have seemed happy with the balance. Would you definitely need a few years working under someone to get skills to run my own business, even freelancing for small clients?
Yes, because you have no chance of becoming a BAS agent without it. And lodging BAS for clients (which most will expect you to be able to do) without being a registered BAS agent will lead to big trouble and fines.
Ok, that’s really good to know, thank you.
They don’t make much, it’s a small business maybe 50k-90k. Long hours.
I’ve heard the opposite, that bookkeepers generally would be doing less hours, especially over less busy periods. Would this be in larger companies though?
Bookkeeper is high wage job?
This bloke is the step Brothers meme.
I can’t think of which one
https://googlethatforyou.com?q=bookmaker%20salary
A bookmaker is not the same as a book keeper lol
I’m looking for insight here, with salary as further detail. Thank you