Guidance on Utilising This Bookkeeping Cost Estimator for SMEs

Purpose:
Designed for Australian small and medium enterprises (SMEs), founders, and business owners, this calculator provides transparent cost comparison of bookkeeping options. Input your annual revenue, employee count, and business complexity to receive detailed cost analysis across hourly bookkeepers, full-time employees, and professional packages. Ideal for businesses evaluating quotes or considering whether to hire in-house.

Tips for Ongoing Use:
Bookmark this page (Ctrl+D or Cmd+D) and revisit it annually or when your business changes significantly (first employees, exceeding $1M revenue, multiple locations). Use the calculator to compare your current bookkeeping costs against alternatives.

Understanding Bookkeeping Cost Basics:
Bookkeeping costs vary dramatically by engagement model. Hourly rates range from $60-100/hour for basic bookkeeping. Package services range from $1,000-6,000/month depending on complexity. Full-time employment costs $60,000-90,000 total including on-costs (super, leave, payroll tax, workers comp). The true cost isn't just the rate but total hours required, quality, reliability, and scalability. Many businesses underestimate needs and budget for 5 hours/month, then discover they need 15-20 hours, resulting in unpredictable costs.

Key Components:‍
1. Revenue Volume: Higher revenue means more transactions. A $500K business might have 100-200 transactions monthly; a $5M business might have 800-1,200. Transaction volume directly impacts hours required. The calculator estimates transactions based on average Australian SME transaction values.Employee Count: Each employee adds payroll complexity (timesheets, leave tracking, super calculations, PAYG withholding, STP reporting). The first employee adds approximately 2 hours/month, with each additional employee adding 30-60 minutes depending on award complexity.

2. Business Complexity: Simple businesses (one entity, one bank account, single service line, cash basis) require less time. Complex businesses (multiple entities, inventory, job costing, multi-currency, accrual basis) can require 2-3x the hours. The calculator adjusts by 1.3x for medium complexity and 1.6x for complex structures.

3. Hourly Bookkeeper Model: Freelance bookkeepers charge $60-100/hour for basic work. The calculator uses $80/hour average. Provides flexibility but has downsides: unpredictable monthly costs, variable availability (juggling multiple clients), limited expertise (often junior-level), no backup coverage (holidays, illness), and minimal strategic input. Works for very small businesses under $500K with simple structures.Full-Time Bookkeeper Model: Base salaries range from $55,000-75,000. True employment costs include superannuation (11.5%), leave provisions (16%), recruitment costs ($5,000-8,000 amortised), ongoing costs (software, training), and management overhead. Total cost typically reaches $85,000-95,000 annually. Viable when you need 25+ hours/week (usually $10M+ revenue with complexity).

4. Professional Package Model: Packages start at $1,000/month for businesses under $1M revenue with fewer than 5 employees, scaling based on revenue, employee count, and complexity. A typical $2M business with 10 employees at medium complexity pays approximately $1,500-2,000/month. Packages include transaction processing, reconciliation, management accounts, BAS lodgement, unlimited payroll, STP compliance, super lodgement, and daily support. You get a team (not single person), so holidays don't disrupt operations.

Benefits for SMEs:
This calculator demonstrates that professional packages typically cost 40-60% less than full-time bookkeepers while delivering superior quality. Compared to hourly arrangements, packages provide cost certainty and usually save 25-40% while dramatically improving quality. You also gain strategic insights, proactive problem-solving, and compliance peace of mind. Quality matters: bookkeeping errors cost Australian businesses an estimated $50 million annually in penalties, interest, and corrections.

Additional Resources:
Explore Scale Suite’s resources for additional insights.

Adherence:‍
Estimates based on Australian industry averages. Actual costs vary by location, experience level, and specific circumstances. For personalised quotes, contact Scale Suite for a free consultation.