US Market Benchmarks — Average Bookkeeper Cost by Entity Type
| Entity Type | Market Average (US providers) | Sharma Jyoti and Co | Annual Savings |
|---|---|---|---|
| Sole proprietor, under 75 transactions | $350–$600/mo | $200–$250/mo | $1,800–$4,200/yr |
| Sole proprietor / SMLLC, 75–150 transactions | $500–$800/mo | $250–$350/mo | $2,400–$5,400/yr |
| Multi-member LLC (Form 1065) | $600–$1,000/mo | $350–$500/mo | $3,000–$6,000/yr |
| S-corp (owner salary + distributions) | $700–$1,200/mo | $400–$600/mo | $3,600–$7,200/yr |
| Business with employees (payroll reconciliation) | $900–$1,500/mo | $500–$750/mo | $4,800–$9,000/yr |
What Drives the Average Bookkeeping Cost Up or Down
- Transaction volume: Every additional transaction adds categorization, matching, and reconciliation time. Under 75 transactions/month is low cost; 200+ is high cost.
- Entity complexity: S-corps require owner salary tracking, salary-versus-distribution ratios, and Form 1120-S workpapers. These add $100–$250/month versus a simple sole proprietor.
- Provider geography: US-based bookkeepers charge $25–$45/hour. ICAI-qualified CA firms in India charge $8–$15/hour — same accounting standards, 60–70% lower labor cost.
- Scope inclusions: Year-end workpapers, 1099 tracking, and catch-up work are add-ons at most US firms. At Sharma Jyoti and Co, year-end workpapers and 1099 tracking are included in the standard monthly fee.
How to Benchmark Your Current Bill
Quick benchmark test: Divide your monthly bookkeeping fee by your average monthly transaction count. If you are paying more than $4.00–$5.00 per transaction (for standard reconciliation and categorization), you may be overpaying. At Sharma Jyoti and Co the effective per-transaction rate is $1.50–$3.50 depending on entity complexity.
Three questions to ask your current bookkeeper if you suspect overpaying:
- What is included in my monthly fee? (Year-end workpapers? 1099 tracking? Payroll reconciliation?)
- What software do my books live in — and if I leave, can I export a full QuickBooks file?
- What is the hourly rate if work exceeds the monthly scope?
Benchmarks by Revenue Range
| Annual Revenue | Typical Transaction Volume | Market Average | Sharma Jyoti and Co |
|---|---|---|---|
| Under $250K | 40–80/month | $300–$500/mo | $200–$250/mo |
| $250K–$750K | 80–180/month | $500–$900/mo | $250–$400/mo |
| $750K–$2M | 150–350/month | $800–$1,500/mo | $400–$700/mo |
| $2M–$5M | 300–600/month | $1,200–$2,500/mo | $600–$1,100/mo |
Frequently Asked Questions
The market average is $300–$900/month. Sole proprietors with low volume: $200–$400. LLCs and S-corps with employees: $500–$1,200. At Sharma Jyoti and Co pricing starts at $200/month — 40–60% below the US average for the same scope.
Single-member LLCs pay $200–$400/month at Sharma Jyoti and Co. Multi-member LLCs requiring Form 1065 workpapers and capital account tracking pay $350–$500/month. US-based bookkeepers charge $500–$1,000/month for the same scope.
Check: divide your monthly fee by your monthly transaction count. If paying over $4–$5 per transaction for basic reconciliation and coding, get a comparison quote. Sharma Jyoti and Co provides a free scope review and quote within 24 hours — no obligation.