Also, add enough wiggle room for additional expenses and contingencies that you may face while the project is going on. When it comes to any kind of job, one of the biggest questions clients would ask you would be, “How much? ” If you’re a freelance bookkeeper, it’s important to determine how you’re going to set your rates in a way that would work for both you and your client. A full-time bookkeeper handles the day-to-day accounting functions for your office. Keeping your books in order and up-to-date is the foundation of the financial strength of your business.
The more you offer, the more you need to reconsider the price you charge for bookkeeping services to ensure you’re charging clients the right amount for your services. 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. These tasks might require different certifications, specialized skills, or additional time, which means they can be billed at a different rate.
This allows clients to choose the level of service they want, identifying what value they see in the offering. Pricing psychology reveals that clients certainly want choice because they all have individual wants and needs. A hierarchy of packages plus customized add-ons gives clients the information they need to understand how you can best help them. Your services agreement should include a list of which financial statements will be provided, and how often they will be delivered. The benefit here though is that you can typically extract a higher price from the client than with a fixed accountant fees approach. If done right, value pricing should therefore result in higher margins.
How Much Should I Charge for Bookkeeping Services? Averages & More (
Mastering how to price bookkeeping services requires a balance of understanding your value, assessing your client’s needs, and maintaining open communication. Remember, the goal isn’t just to bill clients, but to build long-lasting relationships based on trust and value. As a modern, online bookkeeping professional, your strategic pricing model could be the deciding factor that distinguishes your services from the rest. Before you set your prices, it’s worth taking the time to do some market research.
- Utilizing a robust bookkeeping solution can help to streamline the reconciliation process.
- If you decide to outsource, there are a few ways to go including local bookkeeping services, local CPA firms that offer bookkeeping services and specialized, national outsourced bookkeeping firms.
- As a bookkeeper, you know exactly how to categorize expenses and accurately close out the books at the end of the month.
- By the way, educating your clients about the outcomes positions you as an expert instead of a technician.
- Consider investing in simple software like FreshBooks for additional help in handling your finances without breaking the bank.
- A small shift in wording significantly impacts your bottom line.
For full time services, expect to pay from $3,000 to $4,500 per month without the benefits. For outsourced bookkeeping, the price is from $500 to $2,500 per month for basic bookkeeping tasks. As a result, what you charge for your bookkeeping services solved the accounting for cash discounts and trade discounts reflect your expertise rather than the tasks. You client list fills with high value clients who are not price-sensitive or question your fees. Using accounting software can allow you to save time when managing the books for your business.
Yes, you want to earn, but you need to remember that your goal is to provide quality solutions for your clients. GrowthForce accounting services provided through an alliance with SK CPA, PLLC. There are major differences between the three types of bookkeepers and what each can offer your business. Figure out which works for your business and start tackling the problems, or potential problems, with your books. They focus on recording the financial transactions of a business through maintaining records, tracking transactions, and creating financial reports.
Bookkeeping: All you need to know
Take the time initially to understand the chart of accounts, and bank and credit card accounts you’ll be working with. Put yourself in their shoes as small business owners, and work to deliver a solution they need. Where you live, what type of bookkeeping services you offer, and what type of clients you work with affect that answer. A full-time bookkeeper in a major city providing advanced bookkeeping services means a different pricing structure than a part-time bookkeeper working in a small town for a local diner. 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.
If basic bookkeeping is all that your company needs at this stage, you’ll need to decide whether to do the bookkeeping in-house or if you should outsource. If you decide to hire and manage a bookkeeper you’ll also have to decide whether the position is part-time or requires full time. If you decide to outsource, there are a few ways to go including local bookkeeping services, local CPA firms that offer bookkeeping services and specialized, national outsourced bookkeeping firms. Let’s look into three different options your company could consider to fill this need…
Simplify Your Business Finances
Price anchoring is a strategy that plays on a buyer’s tendency to inherently compare information. So, when people see your pricing options, one of the things they’ll first notice is that your top-tier option is higher than your mid- and low-tier plans, and they’ll use that as an anchor. In any industry, experience is influential in pricing decisions, and bookkeeping is no different. It means quality of service, efficiency, calmness, problem-solving, and confidence. Still, from state-to-state in the US, there are significant differences.
I tried using bill.com with this particular client, but I actually didn’t really find it as helpful as I would have hoped. I often just use the bill pay directly through the bank with this client, as it’s relatively easy to do, and many banks will do that service for free. To illustrate what a small client looks like, I’ll be using a preschool I do bookkeeping for that generates about $150k in revenue a year.
However, it is true that the bigger the account is and the more transactions they have means the more time it’s going to take you. I’ll also share more about the fact that as a contractor (who gets a 1099, not an employee), you should charge more, and I’ll give you some tips on negotiating a higher rate when a client hires you. As you can imagine, her business was running her instead of her running her business. We started to put boundaries in place so she no longer worked with clients who treated her like an employee and didn’t respect her.