How To Charge For Bookkeeping Services

how much to charge for bookkeeping services

Whether a bookkeeper is self-employed or employed by a company can also affect the pricing. Self-employed bookkeepers often charge higher rates to compensate for additional expenses and lack of employee benefits. Looking to gain the skills needed for bookkeeping and accounting? Enroll in our online courses to benefit from our years of experience working with small business owners. I want you to think about all the hidden costs that come along with starting your own business. You are paying for your own computer, your own equipment, and your own office supplies.

Now that you know the answer to the question “How much does a bookkeeper cost? You may also consider using online bookkeeping services and accounting software to save time and money, all while meeting your bookkeeping needs. First, the kind of services they provide makes a big difference.

The hourly rate ranges from $26.91 in Louisiana to $43.57 in Massachusetts. Meanwhile, the average hourly wage for in-house bookkeepers is approximately $21.10, ranging from $26.85 in Washington to $16.55 in North Carolina. The average hourly rate for freelance bookkeepers ranges from $26.91 to $43.57.

how much to charge for bookkeeping services

As a contractor, you’re using all your own equipment, so you’re saving them all of that money. As a contractor, the main thing that you are saving an employer–or your client in this case–is TAXES! They have to pay so much more in social security, Medicare, worker’s compensation, and unemployment taxes for an employee. When you work for a company, and they give you a W-2, they are paying a bunch of money to have you working for them. One thing you need to be aware of is how many bank accounts your client has. Each bank account will take you significantly more time because you will have to look up the statements individually and reconcile them.

ways to price your bookkeeping services

You are usually paying for QuickBooks, your education, and insurance. Veronica Wasek from 5-Minute Bookkeeping has a great pricing strategy. For her fixed-rate pricing, I believe she does the 1-3% for any clients that are $300k or below.

This way of charging has changed quite a bit now that we have QuickBooks Online. The actual inputting of transactions isn’t what is taking the most time. What is taking the most time is being aware of their finances, organizing things, and pulling reports.

  1. Smaller clients generate less revenue than medium or large clients.
  2. Think of this bookkeeping service as a mix between traditional accounting and bookkeeping.
  3. Clients know upfront what to expect in terms of costs, providing them with transparency and budget predictability.
  4. Whether a bookkeeper is self-employed or employed by a company can also affect the pricing.

But breaking it down and building your pricing model by considering all the relevant factors will give you a reasonable solution to test. Though you must be willing to make changes if it isn’t working for you—even if that means having tough conversations with clients. If you’re already doing a client’s books, approach them with an offer to build on your role. They already trust you and you already know how their business works.

Spend less time bookkeeping and more time growing your business.

But more importantly, there’s a concept called price anchoring. Working with a licensed tax Professional is worth it, and Taxfyle lets you do just that.

how much to charge for bookkeeping services

Certification exam and materials are $610 for nonmembers and $515 for AIPB members. Upon completion of all certification requirements, you’ll earn the designation of Certified Bookkeeper (CB), which you can include on your business cards and marketing materials. After you sign up to Bench, a dedicated member of our team will assist you in connecting all your financial accounts securely to our platform. This enables you and your bookkeeper to work together seamlessly from the start. Having the proper education and experience is crucial, but it’s not the most important factor in determining the price of the service. On paper, a part time bookkeeper may look like an attractive option.

Hourly Rate Pricing

Typically you will need this level of financial management not only for yourself but for your key stake holders including banks, investors and advisors. Some businesses might only need these kinds of services at certain times, like at the end of the financial year. Outsourcing these tasks to bookkeepers can be a big help, especially if you’re not sure how to do them yourself. Clients may be willing to pay more for these specialized services due to the expertise required. Choosing the right kind of bookkeeping help for your business is important. You can pick an in-house bookkeeper who comes to your office or use online services from anywhere.

Discover the direct correlation between standardized processes and boosted profits for your accounting firm. Value pricing and bundling is an obvious strategy to boost your bottom line. The challenge though, can be persuading your clients to agree to it. Still, from state-to-state in the US, there are significant differences. For example, in Massachusetts, in-house bookkeepers earn 20% more than the national average, whereas in Kentucky, they earn 22% less than the national average. Get up and running with free payroll setup, and enjoy free expert support.

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. Even if you switch to fixed fees or a value pricing structure for your main bookkeeping services, you may have additional services that command a premium.

To add insult to injury, I got paid $5.00/hour to clean the office over the weekend. It’s a silly hangup, but I always want to find a way to skip past my hourly rate or the total cost of my first invoice and get straight to the work. The thing you forget when you go out on your own is you’ve now got several bosses. If you need to raise your rates, you’re suddenly asking a dozen bosses for a raise. The top three states with the highest freelance bookkeeping rates are Massachusetts, Washington, and Maryland, with average hourly rates of $43.57, $40.18, and $39.09, respectively. It’s important to note that the software you use may affect your rate, as some solutions are more expensive than others.

For S-Corps, C-Corps, and Partnerships, you can add-on personal filing for 1 partner or shareholder for just $59/mo when billed annually or $69/mo when billed monthly. You won’t need any other software to work with Bench—we do everything within the platform. The best way to do bookkeeping for small businesses is to come up with a framework, choose the method that works best for your business type, and keep track of all the details.

At Avalon, we also add empathy and even emotional support to the role of an accountant; it can be a lonely road running a business, and we want to help entrepreneurs thrive however we can. I often mention that, starting out as a bookkeeper, you can charge $40 per hour to your clients. Then, as you gain experience and niche down, you can charge up to $80 or sometimes more per hour. However, there is quite a bit that goes into the pricing beast, and it’s not always as cut and dry as this.

Bookkeepers can utilize different pricing strategies, such as hourly rates, fixed fees, and value-based pricing, to establish fair bookkeeper fees and bookkeeping service rates. The way bookkeepers set up their prices is called a pricing structure. This structure helps them decide how much to charge for the bookkeeping jobs they do. Some bookkeepers have a set fee they ask for every hour they work, which we call an hourly fee. Others might set prices based on the kind of bookkeeping services they offer.

Becoming certified in your accounting software is a green light for business owners. They’ll be more inclined to pay higher fees if they see you’ve been endorsed by well-known software companies, especially if it’s the software that they use for their accounts. To make things more complicated, a freelancer, small business, bookkeeping firm, or an accounting firm will offer different average rates for bookkeeping services.

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