Hidden Costs of Hourly Bookkeeping: Why a flat Rate Could Save You Money

By Chris Austin, President of Ardiah

When it comes to bookkeeping, many small business owners face a tough decision: Do you hire a bookkeeper who charges hourly, or do you go with a flat-rate service? It might seem like a minor detail, but the difference between the two can have a major impact on your bottom line—and your sanity.

Let’s break it down.

The Appeal of Hourly Bookkeeping (And Why It’s a Trap)

Hourly bookkeeping seems like a fair deal at first. You pay for what you need, right? If your books aren’t that complicated, you might assume you’ll only be paying for a few hours here and there.

But here’s where things get tricky:

• Time Adds Up Fast – What starts as “just an hour or two” per month often balloons into much more. Reconciling transactions, correcting errors, and answering client questions can all add up quickly.

• No Cost Certainty – With an hourly rate, you don’t really know what your bookkeeping will cost until you get the bill. If you’ve ever had an unexpected invoice that made you question all your life choices, you know the feeling.

• Inefficiency Costs You More – If a bookkeeper takes longer to complete tasks (intentionally or not), you’re the one paying for it. And if you’re using a CPA or high-level accountant for bookkeeping at an hourly rate, you’re probably overpaying.

According to a 2023 report from the Small Business Administration (SBA), nearly 50% of small businesses spend more than 10 hours per month on bookkeeping-related tasks. That’s valuable time that could be spent growing your business instead of deciphering spreadsheets.

The Flat-Rate Advantage: Predictability and Peace of Mind

A flat-rate bookkeeping service is just what it sounds like—you pay a set amount each month, and that’s it. No surprises, no creeping invoices, and no unexpected “overtime” charges.

Why Flat Rate Just Makes More Sense:

• Fixed Costs = Easier Budgeting – Knowing exactly what you’ll pay each month makes planning and forecasting a breeze. No more crossing your fingers when opening an invoice.

• Incentive for Efficiency – Since your bookkeeper isn’t billing by the hour, they have every reason to work efficiently and keep things organized. The better they do their job, the smoother your financials run.

• More Comprehensive Support – Many flat-rate services include more than just transaction tracking. They often cover payroll, reconciliations, tax prep assistance, and financial reporting—all bundled into one predictable cost.

A study by Bench Accounting found that businesses using flat-rate bookkeeping services save an average of 20-30% annually compared to hourly billing models. Why? Because flat-rate bookkeepers focus on getting things done, not stretching out billable hours.

Ardiah’s Approach: Flat-Rate with Flexible Solutions

At Ardiah, we operate on a flat-rate model because we believe in transparency and cost certainty for our clients. While we do offer an hourly cleanup service, even that is project-focused and converted into a flat cost based on projected hours of the project. This ensures businesses know exactly what they’re paying upfront, with no unexpected overages.

Real Talk: What’s Right for Your Business?

If your bookkeeping is minimal and straightforward, an hourly bookkeeper might seem reasonable. But for growing businesses, a flat-rate service eliminates financial uncertainty and ensures you’re getting the support you need without worrying about the clock.

At Ardiah, we provide reliable, transparent, flat-rate bookkeeping that helps small businesses take control of their finances. We believe in working efficiently, keeping costs predictable, and making sure you never get a bill that makes you spit out your coffee.

If you’re tired of playing “guess the invoice amount,” let’s talk. Because bookkeeping should be about clarity—not costly surprises.

Let’s make your bookkeeping work for you, not against you. Get in touch with Ardiah today!