How to Price Bookkeeping Services for Clients of All Sizes

It allows you to adjust your fees without painting yourself into a corner, which can happen if you provide quotes to clients when you don’t know the details of their business. And with time being the ultimate resource, it’s important to charge clients proportionally to the amount of time you’re dedicating to their services. Our bookkeeping and accounting firm works as an extension of your team, learning your business, processes, and are with you every step of the way. With LedgersOnline, you get affordable access to a team of highly skilled and experienced business bookkeepers,accountants, and CPA’s cheaper than what you could hire on your own. Learn how to build, read, and use financial statements for your business so you can make more informed decisions. Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support.

Benefits of Value-Based Pricing

1. Businesses typically expect certain services to be part of bookkeeping, but providing additional offerings that add value to your clients’ businesses can justify charging a higher fee.
2. If you have a large business or more complex needs, you may need to hire a full-time bookkeeper.
3. If you think they’re too high for you to set reasonable rates, consider lowering them.

You can use FreshBooks if you have your own bookkeeping service, or have trained an existing employee to handle it, or have an outsourced accounting company doing the job for you. For example, the process is similar to hiring an in-house bookkeeper but you don’t have to add overhead costs for employees on the payroll. This doesn’t include the benefits that can cost up to 20% of their salary. The best approach to bookkeeping is to translate the work of keeping your financial records and books in order into dollars. If the cost is similar to that of an actual bookkeeper for performing the same tasks, then it may be better just to pay someone to do the job. However, there are slightly more sophisticated ways to package your bookkeeping services that encourage repeat clients, and maximize profits.

Property Management Bookkeeping

Even if you’re “not a numbers person,” or even running a not for profit operation, there’s no denying that it’s cash flow that keeps your business afloat. Sign up today and we’ll do one prior month of your bookkeeping and prepare a set of financial statements for free. Join over 35,000 US-based business owners who have streamlined their finances and have grown their businesses with Bench. Hiring an accountant costs $150 to $400 per hour on average, depending on their experience. A recently certified accountant may charge $50 to $150 per hour, while Certified Public Accountants (CPAs) with 10+ years of experience sometimes charge up to $1,000 per hour.

Another option is to offer an hourly rate for the first job with a new client. Once you feel comfortable with their business and how they work, then use those hours to calculate a fair value-based fee to charge in the future. But the hourly rate is becoming outdated with the dominance of technology. Tech makes once time-consuming work quick, and in many cases, effortless. This means that regardless of a service’s value to your clients, you’re capping your pricing based on how long it takes to deliver that service.

What does a bookkeeper do?

Such billing allows you to pay only for work done, but rates can add up quickly. Proper qualifications are a must, but more experience also costs more. Experienced bookkeepers can charge more than $25 per hour, while entry-level bookkeepers make around $19 per hour on average. More than 5 years of experience typically results in command rates that are 25-50% higher.

Ideally, prioritize the experience factor when hiring a bookkeeper. Go for professionals who have already worked with similar businesses. It’s also important to make sure they have experience in accounting software you use. The more experienced the bookkeeper, the more confident they are with their skills. As a result, they come with a higher monthly cost for business owners. For example, you might process a certain number of transactions for one cost, but going over that incurs a different fee.

Bookkeeper salaries vary state by state (see our chart below), and depending on where you live, you could be paying a large difference in one place versus another. Bringing someone on as an in-house full-time employee requires extra costs on your end, such as benefits and health care, whereas contractors are not entitled to these perks. You may not know how long you’ll need someone, but comparing the monthly bookkeeping cost of a contractor versus an in-house employee is the best way to see this angle side by side. Navigate payroll bcc ymca service costs in 2024 with our comprehensive guide. Explore average pricing, factors, and make informed decisions for your business.