If three bookkeeping quotes feel impossible to compare, it’s not you. Providers price in different ways (hourly vs fixed vs per-transaction), scopes vary (bank recs only vs full month-end), and the app stack is often a mystery until after you sign. This guide makes it comparable: the pricing models, what’s included (and not), realistic ranges by company size, a 30-staff worked example (clearly labelled monthly and yearly), and a scope/risk table so you can choose with confidence.
Compliance note: VAT-registered businesses must keep records digitally and file via compatible software (Making Tax Digital for VAT). GOV.UK
If you submit VAT returns late, HMRC’s points regime can trigger a £200 penalty once you reach the threshold; late-payment interest is separate and set centrally by HMRC. GOV.UK
1) The true cost model (what actually drives price)
Pricing methods you’ll see
- Hourly – fine for ad-hoc clean-ups, unpredictable for BAU.
- Fixed monthly – best for steady volumes and clear SLAs; set volume caps.
- Per-transaction – fees set by bank lines/invoices/docs processed; still used in parts of the market.
Software licences (core)
- Xero (UK) – Hubdoc data capture is included with business-edition plans; note some UK bank feeds carry bank-levied charges which Xero passes on. central.xero.com
- Multi-currency – in Xero, Comprehensive and Ultimate include multi-currency; budget the correct tier if you invoice in USD/EUR, etc. central.xero.com
- QuickBooks Online (UK) – receipt capture is a built-in feature; multi-currency is available on Essentials and Plus (not Simple Start). quickbooks.intuit.com
App stack (typical add-ons)
- Dext Prepare – partner pricing scales by per-client bundles. dext.com
- AutoEntry – credit-based pricing; credits vary by document type (e.g., invoices 1 credit; line-item invoices 2; bank statements 3 credits/page). autoentry.com
Other cost drivers to confirm up-front
- Multi-currency / multi-entity (revaluations, intercompany, extra reconciliations). central.xero.com
- CIS (if relevant): Xero confirms CIS returns remain an add-on across plans. Xero Blog
- Disbursements (chargeable bank feeds). Xero
- VAT prep & submit under MTD (scope and deadlines). GOV.UK
- Management pack (P&L, balance sheet, cash summary, KPI/WIP, aged lists, commentary).
- Year-end journals (who posts them; who owns the workings).
- Onboarding/clean-up (historic backlog; data quality remediation).
Related guides: Build your bookkeeping around a 52-week rolling forecast so VAT/PAYE and big supplier runs are visible before they bite, see Cashflow forecasting services.
2) Costs by size – honest ranges to baseline
These are realistic bookkeeping service ranges for service-based SMEs (typical app stack + VAT noted separately). Your exact fee depends on process hygiene, integrations/approvals, and how quickly you close month-end.
Volume bands (typical per month)
| Size | Bank lines | Sales invoices | Bills/receipts | Notes |
|---|---|---|---|---|
| 5 staff | 120–220 | 50–90 | 80–150 | One main bank; light card use |
| 10 staff | 220–450 | 90–170 | 150–280 | More cards/expenses; projects |
| 25 staff | 500–900 | 250–450 | 400–800 | Multiple cards; app rules |
| 50 staff | 1,000–1,800 | 600–1,000 | 1,000–1,600 | Multi-dept; approvals; WIP |
Typical monthly bookkeeping fee ranges (ex-VAT)
| Size | Steady-state bookkeeping | Common add-ons (ex-VAT) |
|---|---|---|
| 5 staff | £300–£700 per month | VAT return £75–£200/return; app stack £15–£60/m |
| 10 staff | £600–£1,100 per month | VAT return £100–£250/return; app stack £30–£100/m |
| 25 staff | £1,100–£2,000 per month | VAT return £150–£300/return; app stack £60–£180/m; multi-currency uplift if needed |
| 50 staff | £2,000–£3,800+ per month | VAT return £200–£400/return; app stack £120–£300/m; multi-entity/multi-currency uplift |
Software note: Plan features/prices change. Xero’s UK pricing confirms some bank feeds are chargeable; QuickBooks UK shows built-in receipt capture and tier-specific features. Check current pages before budgeting. Xero
3) Worked scenario – 30-staff service SME (UK, VAT-registered)
Profile (monthly volumes)
- Banking: 2 current accounts + 1 card provider → ~800 bank lines
- Sales: ~380 invoices (projects + retainers)
- Purchases/expenses: ~650 bills/receipts + mileage/expense claims
- Complexity: multi-currency customer invoices (USD/EUR), contractor costs (no CIS), light deferred income
- Deadlines: MTD VAT quarterly; management pack by WD7 (workday 7) i.e., a reliable close schedule, not quarter-end tidy-ups
Scope we’d expect
- Weekly posting; bank feeds; weekly reconciliations; AR/AP; expenses capture; month-end journals (deferred income, prepayments, accruals); aged lists + commentary; MTD VAT prep & submit; quarter-end review against your 52-week forecast (internal).
Suggested stack
- Xero with multi-currency (ensure Comprehensive/Ultimate if you need it) + Hubdoc; note chargeable bank feeds where applicable. central.xero.com
- Dext or AutoEntry for capture (bundle/credit model — agree the allowance up front). dext.com
Indicative budget (ex-VAT) monthly vs yearly clearly shown
- Bookkeeping (monthly): £1,400–£2,200 per month → £16,800–£26,400 per year
- App stack (monthly): £80–£180 per month → £960–£2,160 per year (bundle/credit-based; confirm vendor rates) dext.com
- VAT returns (quarterly): £200–£300 per return → £800–£1,200 per year
- If onboarding/clean-up is needed (one-off): priced by months of backlog + data quality.
- Estimated monthly cost £1540-£2480
Why link to your 52-week forecast each month? It keeps VAT/PAYE and supplier lumps visible before they hit, reducing the chance of late submissions under HMRC’s points regime and smoothing cash. GOV.UK
Related reads: If payroll timing is driving cash swings, see Payroll outsourcing costs UK and DIY vs outsourced payroll.
4) Scope & risk, in-house vs software-only vs outsourced
| Model | What’s included | Effort on your team | Main risks | When it “wins” |
|---|---|---|---|---|
| In-house (hire) | Full control; immediate tweaks; internal knowledge | High (recruit, manage, cover leave) | Key-person risk; scaling; under-used tooling | Stable, high volume, with finance leadership |
| Software-only | Ledger + capture; you do posting/recs | High (posting, chasing, month-end) | Slipping reconciliations; late VAT under points regime (penalties/interest) if compliance drifts GOV.UK | Very small/simple flows |
| Outsourced bookkeeping | Posting, reconciliations, MTD VAT prep & submit, WD7 management pack with commentary | Low–Medium (approvals, queries, uploads) | Scope creep if volumes spike; unclear clean-up scope | 10–50 staff SMEs needing a dependable close schedule |
Spin-off explainer: Bookkeeper vs accountant vs finance manager, who does what, when to set roles/controls and your finance timetable.
5) Red flags that increase cost (or hide it)
- Quarter-end tidy-ups only (no monthly close) → backlogs and higher risk under VAT penalty points. GOV.UK
- No management pack – no accruals, prepayments, WIP, aged lists or commentary.
- No 52-week forecast alignment – VAT/PAYE and supplier lumps surprise you; cash stress rises.
- Data quality – duplicate feeds, stale bank rules, unapproved expenses = rework.
- Unclear app costs – Dext is bundle-based; AutoEntry is credit-based (vary by doc type). dext.com
- Multi-currency assumed but not licensed – Xero multi-currency requires Comprehensive/Ultimate; QBO multi-currency requires Essentials/Plus. central.xero.com
For deeper dive read: Hidden bookkeeping fees UK (what providers rarely include) and Monthly vs quarterly bookkeeping – cashflow and risk trade-offs (internal).
6) “Cost by situation” reusable visual
| Situation | What’s included | Where it fits | Indicative pricing (ex-VAT) |
|---|---|---|---|
| Compliance-only | Monthly bank recs, VAT prep/submit, basic reports | Low-complexity, ≤10 staff | £400–£900 per month |
| Clean-up project | Historic posting, corrections, re-reconcile, app rules, month-end reset | Backlogs, pre-funding, provider change | £1,500–£6,000+ one-off (scope-based) |
| Fully-managed finance | Weekly posting, WD7 pack, VAT, AR/AP workflows, query handling, forecast check-ins | 15–50 staff; board reporting timetable | £1,200–£3,800+ per month |
For more information: How much does catch-up/clean-up bookkeeping cost? (worked examples) we break down typical backlog patterns (internal).
FAQs (plain English)
1) How are clean-up fees calculated?
By scope: months of backlog, number of bank accounts/cards, data quality (duplicates, missing docs), and whether multi-currency is involved. Providers may price hourly or as a fixed project.
2) Do most providers have minimum terms?
Commonly 3–12 months for fixed pricing; monthly rolling exists but may carry setup fees. Get term, notice, and price-review points in writing.
3) Who owns year-end journals?
You should. Ensure the engagement says journals and workings are your property and will be shared with your year-end accountant on request.
4) Will I lose my data if I switch?
Export before you move. Xero confirms cancelled-org data is archived for around 7 years; QuickBooks Online provides 1 year read-only after cancellation. Keep local exports to meet record-keeping duties. central.xero.com
Related guides (next steps)
- Build confidence in cash: Cashflow forecasting services (internal).
- Self-serve clarity: 52-week rolling forecast (internal).
- People costs and timing: Payroll outsourcing costs UK & DIY vs outsourced payroll (internal).
- System design: Best bookkeeping setup for SMEs (roles, controls, calendar) 2025/26 edition (internal).
What to do next
Download the DIY Bookkeeping Checklist (UK 2025/26) to tighten processes straight away.
Ready to price your specific setup? Book a 20-minute planning call and we’ll map scope, volumes, and a reliable business day 7 close schedule.