Hire a bookkeeper: when to and what it costs in the UK

Published Saturday 28 February 2026

Table of contents

• What does a bookkeeper do?
• How are bookkeepers different to accountants?
• Why hire a bookkeeper?
• When should you hire a bookkeeper?
• How much does a bookkeeper cost?
• What do bookkeepers actually do?
• How to find and hire a bookkeeper
• What to look for in a bookkeeper
• Getting the most from your bookkeeper
• FAQs on hiring a bookkeeper

Key takeaways

• Hire a bookkeeper when you're spending more than five hours weekly on financial admin or when your transaction volume has increased significantly, as this frees you to focus on revenue-generating activities instead of day-to-day financial tasks.
• Expect to pay £20–50 per hour or £100–400 per month for freelance bookkeeping services in the UK, with costs varying based on your business size, transaction complexity, and the bookkeeper's experience level.
• Look for bookkeepers with AAT or ICB qualifications who use cloud-based accounting software compatible with your accountant's system, ensuring seamless collaboration and real-time access to your financial data.
• Start with a trial period or defined project when hiring a bookkeeper to assess the working relationship, and always verify their professional insurance coverage and check references from previous clients.

What does a bookkeeper do?

A bookkeeper records your business's financial transactions and keeps your accounts accurate and up to date. They handle the day-to-day numbers so you don't have to.

Here's what bookkeepers typically handle:

• Track transactions: record sales, purchases, payments and receipts
• Maintain records: organise and store financial data in general ledgers
• Review processes: help design and improve internal business workflows
• Prepare for accountants: format financial information so accountants can access it easily

Here's what a bookkeeper can do for you, and when you might hire one for your business.

How are bookkeepers different to accountants?

Bookkeepers handle day-to-day financial tasks, while accountants focus on strategic advice and compliance. The two roles complement each other.

Here's how they differ:

• Bookkeepers: record daily transactions, maintain accurate accounts, and flag near-term issues like cash flow problems or late payments
• Accountants: review accounts quarterly, file tax returns, prepare official reports, and provide high-level business advice

For your business to run smoothly, you ideally need both. Hire a bookkeeper for the daily work. Hire an accountant for reporting and strategic guidance.

Why hire a bookkeeper?

Hiring a bookkeeper frees you to focus on running your business instead of tracking every transaction. Most business owners didn't start their company to spend hours on financial admin.

Take a hair salon, for example. Even with a simple business model, you might have:

• dozens of daily sales through cash registers or POS systems
• supplier invoices for hair products
• employee wages to record and pay
• high transaction volumes with lots of customers

That's a lot to track. And without proper bookkeeping, transactions pile up, mistakes happen, and important details get lost.

A bookkeeper takes this burden off your plate. They handle the day-to-day recording of receipts, invoices and transactions so you can concentrate on what you do best.

When should you hire a bookkeeper?

The sooner the better. Ideally, hire a bookkeeper soon after starting your business. The longer you wait, the more receipts and invoices pile up, and the harder it becomes to remember details.

For example, you may ask yourself, "What was this train ticket for? Who did I visit on 13 July?" A bookkeeper would know which client you visited and why, and account for the expense correctly.

Here are signs that indicate you should hire a bookkeeper:

• You're spending more than five hours a week on financial admin
• You've missed tax deadlines or made filing errors, a significant issue as HMRC requires electronic VAT returns to be received by the seventh calendar day after the standard due date
• Your transaction volume has increased significantly
• You're experiencing cash flow problems
• You've hired employees and need payroll support
• You're preparing for growth or seeking funding

How much does a bookkeeper cost?

Freelance bookkeepers in the UK typically charge £20–50 per hour, or £100–400 per month on a retainer basis. The average salary for an employed bookkeeper is between £24,000 and £35,000, depending on experience (according to the National Careers Service). Your actual cost depends on several factors.

Several factors affect how much you'll pay for bookkeeping services:

• Business size: more transactions mean more work
• Complexity: VAT returns, payroll and multi-currency add to the workload
• Experience level: qualified bookkeepers with certifications may charge more
• Location: rates vary across the UK
• Service scope: basic transaction recording costs less than full-service bookkeeping

Why it's worth the investment:

The time you save can be put back into revenue-generating activities. A bookkeeper also helps you avoid costly mistakes like late fees, tax penalties and incorrect filings.

Bookkeepers typically cost less than accountants because they handle day-to-day tasks rather than strategic advice. Most small businesses benefit from having both.

What do bookkeepers actually do?

Bookkeepers use the same recording methods as accountants, which means your accountant can quickly process your financial information.

Here are the core tasks a bookkeeper handles:

• Process documents: collect receipts, invoices and transaction details
• Record transactions: enter information in accounting software using proper methods
• Clarify costs: work with you to assign expenses to specific clients or projects

Many bookkeepers also offer additional services beyond basic transaction recording:

• Software advice: recommend add-on tools to streamline workflows, such as POS systems
• Payroll support: simplify how you pay employees via payroll services
• Rescue work: tidy up mistakes made by inexperienced staff
• Training: teach you how to use accounting software

A good bookkeeper becomes your partner in keeping the business running smoothly day to day.

Real-time visibility into your finances

When your bookkeeper uses cloud-based accounting software, you can both access your financial data securely from anywhere. They become your constant accounting contact, best placed to answer questions about where money is coming from and where it's going.

This real-time view helps you spot cash flow issues early and make confident business decisions.

How to find and hire a bookkeeper

Finding the right bookkeeper takes careful research because you're trusting them with your business finances. Here's how to approach the hiring process:

1. Define your needs: decide what services you require, such as daily bookkeeping, VAT returns, payroll or year-end preparation
2. Ask for recommendations: check with your accountant, business partners, or clients for referrals
3. Search for candidates: browse the Xero advisor directory to find Xero-certified bookkeepers, or contact local bookkeeping businesses directly
4. Check software compatibility: look for bookkeepers who use cloud-based accounting software, ideally the same system as your accountant, so you can all share financial data securely
5. Verify qualifications: look for professional certifications such as AAT or ICB, and confirm relevant industry experience
6. Interview candidates: ask about their experience with businesses like yours, discuss communication preferences, and request references
7. Check references: contact referees to ask about reliability, accuracy and communication
8. Start with a trial: begin with a defined project or trial month to assess the working relationship

What to look for in a bookkeeper

The right bookkeeper combines qualifications, experience and compatibility with your business. Here's what to check before you hire.

Look for these professional qualifications when evaluating candidates:

• AAT (Association of Accounting Technicians): widely recognised UK bookkeeping qualification
• ICB (Institute of Certified Bookkeepers): a professional membership body for bookkeepers, responsible for supervising over 3,000 members to ensure compliance with the UK's Money Laundering Regulations
• Xero certification: shows proficiency with Xero software (levels include Certified Advisor, Silver, Gold and Platinum Partner)

Beyond qualifications, consider these experience and skill factors:

• Industry knowledge: experience with businesses like yours
• Software proficiency: familiarity with cloud-based accounting tools
• Communication style: responsive and clear in explaining financial matters

Also consider these practical factors before making your decision:

• Professional insurance: provides protection if errors occur. The Financial Conduct Authority (FCA) outlines specific professional indemnity insurance (PII requirements) for firms involved in financial activities.
• References: verifiable track record with other clients
• Availability: capacity to handle your workload and respond when needed

Getting the most from your bookkeeper

A bookkeeper saves you time and gives you clarity over your business finances. They handle daily financial tasks so you can focus on growing your business.

A bookkeeper gives you ongoing visibility into your finances. The real-time information they provide helps you:

• spot cash flow issues before they become problems
• make confident business decisions
• differentiate your business from competitors

Many bookkeepers specialise in particular industries, so ask about their experience to get even more value.

Xero's cloud-based accounting software makes working with a bookkeeper simple. You can both access real-time financial data, automate routine tasks, and collaborate from anywhere. Get one month free to see how Xero streamlines financial management.

Ready to find your bookkeeper? Browse qualified, Xero-certified professionals in the Xero advisor directory who understand your industry.

FAQs on hiring a bookkeeper

Here are answers to common questions about hiring a bookkeeper for your small business.

How much does a bookkeeper cost in the UK?

Bookkeepers typically charge £20–50 per hour or £100–400 per month, depending on your business size, transaction volume and the services you need.

Are bookkeepers cheaper than accountants?

Yes, bookkeepers usually cost less because they handle day-to-day tasks like recording transactions, while accountants provide strategic advice and compliance services. Most businesses benefit from both.

What qualifications should I look for in a bookkeeper?

Look for AAT (Association of Accounting Technicians) or ICB (Institute of Certified Bookkeepers) qualifications, plus Xero certification if you use Xero software.

How do I know if I need a bookkeeper or an accountant?

Hire a bookkeeper for daily transaction recording, bank reconciliation and basic reporting. Hire an accountant for tax returns, strategic advice and compliance. Most small businesses need both working together.

Can I hire a part-time or freelance bookkeeper?

Yes, many bookkeepers work freelance or part-time, which suits small businesses well. You can hire them for a few hours per week or month depending on your transaction volume. Cloud-based software makes remote collaboration easy.