Emphasize how your services add value to clients’ businesses to support your pricing. Choosing the right pricing model is crucial for setting your fees. Different models suit different business needs and client preferences. Common pricing models include hourly rates, fixed fees, and retainer agreements.

A full charge bookkeeper takes care of the usual bookkeeping service but also handles some accounting duties. Think of this bookkeeping service as a mix between traditional accounting and bookkeeping. You want to hire a bookkeeper with the requisite qualifications. Freelance bookkeepers often come from different backgrounds, but this doesn’t mean they necessarily offer lower prices for their services.

This will ensure you are paid for your work as soon as possible. We believe everyone should be able to make financial decisions with confidence. Ever since my first bookkeeping job over the summer in 1990, I’ve been focused on helping small businesses grow by better understanding their numbers. As you might have figured out from the sheer volume of this post, it’s a topic I spend a lot of time thinking about.

We created the dedicated Pricing Collection to address this exact issue, because bookkeepers deserve to confidently charge what they’re worth. Specializing in a particular industry or client type, whether construction, e-commerce, or professional services, gives you a competitive edge. Many virtual bookkeepers live in small towns but find clients in high-cost-of-living areas. You can even collaborate with a local CPA to get an idea of typical pricing and pitch your services as a subcontractor while you’re at it. Factors like location, niche expertise, certifications, experience, client size, and scope of work all influence your pricing. Getting answers on the cost of bookkeeping is often less than straightforward.

• Businesses in the hospitality or property management industries may need different financial services than business owners of a restaurant franchise.
• Many of these services offer various plans that cover everything from just the bookkeeping basics to other back-office tasks, like payroll and accounts receivable.
• FinancePal offers package-based bookkeeping pricing options that all include a dedicated accounting team, online access and mobile application, and monthly reconciliations.

Experience

This includes not only your direct expenses, such as software subscriptions, office supplies, and training, but also indirect costs like marketing, insurance, and your own salary. By calculating these costs, you can establish a baseline for your pricing to ensure you cover expenses and make a profit. It is ideal to offer different pricing tiers to your clients for your bookkeeping services.

How do I determine my hourly rate for bookkeeping?

The thing that takes the most time with this client is the invoicing. They have a system outside of QuickBooks that is how much to charge for bookkeeping HIPPA compliant, which are the rules in the United States that you need to follow if you keep any medical information about your patients. Based on your discovery call with the client, you should have an idea of how “painful” their current bookkeeping processes are for them. For this step, you just need to list out the services, support, and technology for each tier, like the example below. For instance, Client A, who hates bookkeeping, will pay more than Client B, who doesn’t mind it.

Some bookkeepers add in profit margin as a buffer for the unexpected. If you’re running a large company with complex, high-volume finances, an in-house bookkeeper might make sense. But for most small and growing businesses, paying a full-time salary for part-time bookkeeping work is simply not cost-effective. Talent Hackers connects businesses with skilled offshore bookkeepers. They can manage daily transactions and tax preparation at lower costs than in the U.S.

Different Ways To Charge For Your Bookkeeping Services

Another factor to consider is the size of your client’s business. A small business client will have different bookkeeping needs than a large corporation. You will need to consider the number of employees, the number of bank accounts, the type of business, and the annual revenue when pricing your services. Whether you offer bookkeeping price packages or custom pricing, it is important to determine how many bank accounts and credit card accounts need to be reconciled. Each pricing package should clearly outline how many bank account reconciliations are included and an approximate number of bank and credit card transactions. A big tip, if you’re going to any type of non-hourly billing, is to work out a price list for your services.

• If you’re thinking about hiring a bookkeeper, hourly rates can vary widely.
• They help cut expenses while maintaining quality, no matter the pricing model.
• Later in this article, I’ll share a basic 4-step process you can use to implement value pricing for your bookkeeping services.
• Your bookkeeper’s location can significantly affect their rates.
• Through our structured courses, hands-on coaching, and the incredible resources in The Bookkeepers’ Collective, bookkeepers are transforming their pricing, and their lives.

Introverted bookkeepers: how to confidently talk to prospective clients

The answer depends on the type of services you need and the size of your business. The fees charged by professionals vary greatly depending on their qualifications and experience level, as well as the complexity of your requirements. Before setting your rates, it’s essential to understand your costs.

Businesses in the hospitality or property management industries may need different financial services than business owners of a restaurant franchise. An alternative method to the monthly price method is to estimate the number of hours it will take to do the cleanup and multiply by an hourly rate. If you go this route, I highly recommend that you also consider the administrative time to onboard the client and other matters that may take up your time aside from doing the actual cleanup. If you have questions about bookkeeping services or accounting and tax services, our accounting firm will be happy to help. An accountant can provide invaluable assistance in this regard and can help save money over the long term.

Value of services

Since packages emphasize outcomes rather than functions, some clients will opt for a higher package than you expected. This package includes the services most of your clients need – and possibly a little extra. Once you consider your clients and listed your services, let’s start to bundle your services together. Remember the outcomes have greater value than individual tasks.

This can be something you share or even display on your website, but it doesn’t have to be. The important part is to figure out what services you provide and how much you want to charge for them. As the business owner, you’d be willing to pay more for those insights too. I don’t think this is as viable for someone doing a regular set of recurring services each month. However, if you provide less recurring services such as consulting, analysis, and accounting software support, this could be an option for you.

What is the Difference Between Accounting and Bookkeeping?

For businesses with more complex structures or more than a handful of monthly transactions, this can end up being significantly more cost-effective than the hourly-cost variance of a traditional firm. Outsourcing bookkeeping to an external service provider is a great solution for small businesses that don’t have the capacity to employ their own full-time bookkeeper. This kind of arrangement allows businesses to rely on specialized knowledge and experience in handling financial records, payroll system, and even controllership functions. Ideally, the bookkeeper should be familiar with popular cloud-based accounting software such as Quickbooks Online so collaboration can be carried out online efficiently. Part time bookkeepers will charge between $400 and $800 per month for basic bookkeeping, excluding the benefits.