Pricing maths
Fixed-fee vs hourly bookkeeping: which saves you more?
Worked examples, break-even points, and the traps on both sides.
Quick answer
The short version
For predictable monthly work, fixed-fee usually wins: 8 hours a month at $70/hr costs $560, while an equivalent package runs $299–$499. Hourly wins for one-off or irregular work. The break-even sits around 5 hours a month of recurring bookkeeping — above that, packages undercut hourly and remove the incentive to pad hours.
Worked example
The maths on a typical small business
Take a trades business doing ~250 transactions a month. An hourly bookkeeper at $70/hr needs roughly 7–9 hours for coding, reconciliation, invoicing, and a basic month-end — call it 8 hours. Monthly invoice: $560. And that's a clean month. A complex month — EOFY prep, a payroll issue, a supplier mess — pushes 11–12 hours: $770–$840.
The equivalent fixed package: Growth at $499/mo covers up to 400 transactions with a management report and review call included. Same work, $61–$341 less per month — $730–$4,000 a year — with the price fixed before the month starts.
The deeper issue isn't the rate, it's the incentive. Hourly billing rewards more hours; fixed-fee rewards efficiency. Under hourly, there's no reason for the provider to automate your invoicing or clean up your chart of accounts — both reduce billable time. Under fixed-fee, every efficiency gain is theirs to keep, so they're motivated to systematise your books.
The trap
Hourly creep: how $60/hr becomes $700/mo
Hourly creep is the slow inflation of the monthly invoice without anything going wrong. It works like this: the quote is $60/hr for "about 5 hours a month" — $300. Month one lands at $360 ("a few extra queries"). Month three hits $480 ("payroll took longer"). By month six you're paying $600+ and nobody did anything dishonest; the model just has no ceiling.
The defence, if you go hourly: a written monthly cap, a defined scope ("coding, reconciliation, and BAS-ready ledger — everything else quoted first"), and invoices itemised by task so you can see where the hours go. If a provider won't agree to a cap, that's your answer about the model.
When hourly wins
The honest cases for hourly billing
Fixed-fee isn't always the answer. One-off cleanups: 18 months of neglected books is a project — hourly or a fixed project quote both work, but a monthly package is the wrong vehicle. Truly irregular volume: if some months need two hours and others need none, hourly avoids paying for idle capacity. Due diligence or sale prep: bounded, intense, then over.
The pattern: hourly suits work with a beginning and an end. Fixed-fee suits work that repeats every month. Most businesses need the second kind far more often than they think — which is why the industry has moved decisively toward packages.
Checklist
Comparing quotes fairly
Whatever model you're quoted, run it through this: What's the all-in monthly cost at my volume? (Make hourly providers estimate hours, in writing.) What's excluded? (Payroll, BAS-ready packs, and review calls are the usual extras.) What happens when I exceed the scope? (Tier-up conversation vs surprise hourly bills.) Can I leave? (No lock-in is the standard you should expect.) Who does QA? (A package without review is just cheap hours in a trench coat.)
See Adelaide bookkeeping costs for current market ranges, and our published pricing to compare against.
Related reading
Keep going
- How much does a bookkeeper cost in Adelaide? — real price ranges.
- What does outsourced bookkeeping actually include? — the monthly checklist.
- Bookkeeping packages — $299/$499/$899, inclusions published.
- All FinanceDesk pricing
FAQ
Fixed-fee vs hourly questions
Is fixed-fee or hourly bookkeeping cheaper?
For predictable monthly workloads, fixed-fee: 8 hours at $70/hr is $560 vs a $299–$499 package. Hourly wins for one-off or irregular work like cleanups.
At what point does a fixed package beat hourly?
Roughly 5+ hours a month of recurring bookkeeping. Below that hourly can be cheaper; above it, packages undercut the hourly invoice and remove the incentive to pad hours.
What is hourly creep?
The slow inflation of hourly invoices — complex months, extra queries, scope drift — with no ceiling. A $60/hr quote can land at $700+/month without dishonesty; the model rewards more hours.
Do fixed-fee packages have hidden limits?
Honest ones publish limits, usually transaction volume. Check the overage policy: fair is a tier-up conversation after repeated heavy months, not surprise hourly bills.
Which is better for a startup with irregular income?
Hourly or a low entry-tier package. If some months need almost nothing, hourly avoids paying for idle capacity. Switch to fixed-fee once volume stabilises.
Do the maths with real numbers.
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