If you need to raise your rates, you’re suddenly asking a dozen bosses for a raise. With my small clients, I do all the regular bookkeeping tasks, such as hooking their banks up to bookkeeping and payroll services QuickBooks Online, categorizing all their transactions, and reconciling at the end of the month. However, for this client, I also do receipt management, which is probably the most time-consuming task I do for this preschool.
How to Price Bookkeeping Services for Small, Medium, and Large Clients
But it can still be overwhelming to handle your financial recordkeeping on your own. But there is nothing worse than setting a price too low and beginning to resent your work or your clients. Plus, with Karbon’s automated Client Requests and client portal, firms are saving 3.2 hours per week, per employee by not chasing clients for information. It’s not a subscription in the traditional sense, where you take your value pricing, divide it by 12 months of the year and engage clients on monthly retainers. With fixed-fee pricing, the more work you can do in a day directly correlates to an increased profit.
Step 2: Evaluate Qualifications and Experience
“Hourly arrangements can create a tense and antagonistic, ‘us vs. them’ relationship. Why would anyone want that with any vendor, let alone your accountant? The reason we do fixed pricing is because we don’t want our clients to be penalized for our incompetence and inefficiency, but we do want to be rewarded for our competence and efficiency.” We recommend QuickBooks Online, which we ranked as the overall best small business accounting software. If you decide to become certified as a QuickBooks ProAdvisor, you’ll have the added benefit of a free subscription to QuickBooks Online Accountant. If you want to learn about the fastest way to become a self-employed bookkeeper, working flexible hours online for your clients, check out Brilliant Bookkeeper.
Cost for Small Businesses
- Any of these options might be perfect for you right now, and the best option will change throughout your bookkeeping career.
- Hybrid models are also common, combining a monthly base fee with per-transaction or hourly overage charges.
- Refine your marketing efforts to attract clients who value your expertise and are willing to pay for premium services.
- Do your research ahead of time to find average rates for services in your state.
If you can get away with that, part-time bookkeeping services can be much more affordable than a full-time bookkeeper online bookkeeping working in house. The average hourly rate for freelance bookkeepers ranges from $17.01 to $28.48. Depending on your geographic location, this amount will be more or less than the average national rate of $22.75 per hour.
Audit Red Flags – Mistakes to Avoid in Your Business
If you would make more in that time than you would spend on a bookkeeper, it may be worth hiring one. Bookkeepers need to stay current with software updates and new features. Consider the ongoing nature of your bookkeeping needs when selecting a pricing model.
- I like to calculate my rate based on my max time, but then I’m rewarded if I work quickly and efficiently.
- More than 5 years of experience typically results in command rates that are 25-50% higher.
- In general, the more specialized your skills are and better service you offer, the more you can earn because you’re becoming an expert in your field.
- If you need to raise your rates, you’re suddenly asking a dozen bosses for a raise.
Overall stats of a large client
With tech taking up so much airspace in modern accounting, those who are fluent users are quickly outpacing those who aren’t. In a survey by PracticeWeb, 66% of clients surveyed said they would pay more for a ‘tech-savvy’ accountant. Value-based pricing, instead, rewards experience and tech fluency. It’s the future in a changing accounting industry, where you can utilize tech to increase efficiency and output. We are not a public accounting firm and do not offer services that necessitate a license to practice public accountancy. Additionally, businesses may need to invest in training and ongoing professional development to ensure their bookkeeper stays updated with industry trends and regulations.
- The states with the lowest hourly rates for bookkeepers are Louisiana and Georgia, at $26 to $28/hour.
- However, if you provide less recurring services such as consulting, analysis, and accounting software support, this could be an option for you.
- Plus, you can get real-time updates and quick responses if any issues arise.
- The complexity of this job depends on the size of the business, number of transactions to be recorded, and the nature of those transactions.
- 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.
- Get up and running with free payroll setup, and enjoy free expert support.
Tips for finding a cost-effective bookkeeper
Bookkeepers must carefully consider these costs when setting their prices. The right software can improve their services and bookkeeping price packages justify higher rates. The lower overhead costs in these areas can contribute to these reduced rates.
- Also, be sure not to overcomplicate your pricing by not having too many pricing tiers or not clearly defining your services.
- As an industry expert, you might help them recognize needs and opportunities.
- Proper qualifications are a must, but more experience also costs more.
- This helps match the right bookkeeper’s expertise and service level to your business.
- In-house bookkeepers can charge anywhere from $18-23 per hour, with variations depending on experience.
- New bookkeepers will enter at a lower rate than those with years of experience under their belt.
How much should I charge for bookkeeping services? 6 Factors to consider
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. The information provided in this blog is for general informational purposes only and does not constitute financial, accounting, or legal advice. While efforts have been made to ensure the accuracy and reliability of the information presented, no guarantee is made regarding its completeness or suitability for any particular purpose.