How to Price Bookkeeping Services for Small, Medium, and Large Clients

This demonstrates professionalism on your part and helps build trust with the client. However, there are slightly more sophisticated ways to package your bookkeeping services that encourage repeat clients, and maximize profits. 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.

Fixed Monthly Fees

Bookkeeping firms in urban areas or major cities charge a higher fee than those in rural regions. This is because the cost of living is high in metropolitan areas, a factor contributed by the high overhead costs. Additionally, the office space charges are high even for a limited space compared to a virtual or rural office. Some industries also have more transactions than others, increasing their bookkeeping fees.

• So to bill correctly, it’s important to identify what you’re charging for, the way you charge, and what adjustments you can make to improve your bottom line.
• When you’re first starting out, it’s hard to get a grasp on that, though, which is why I like to put it based on terms of approximate hours worked.
• Some industries also have more transactions than others, increasing their bookkeeping fees.
• You may also offer clients discounts or other special considerations to make your packages more attractive to them.
• This offers a solution for bookkeepers who serve clients with varying levels of bookkeeping complexity.

Full-Time Bookkeepers

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. To make things more complicated, a freelancer, small business, bookkeeping firm, or an accounting firm will offer different average rates for bookkeeping services. As a freelancer, it is safe to charge an hourly rate ~ $25 per client. This cost is in sync with the average bookkeeping charges, as mentioned by the US Bureau for Labor Statistics. The services bookkeepers offer and the ones accountants offer can have an overlap sometimes but it is no news that accountants have a set of more complex tasks. Tax preparation, financial analysis, planning, and budgeting, among other things are specific to accountants.

Choosing the Right Bookkeeping Service for Your Practice

Ensure that all facts are correct and that the cost represents the value and complexity of the service. Use these questions to judge the bookkeeper’s transparency levels and determine whether to use their services. Technology has seen the development of accounting systems that ease the bookkeeper’s burden when recording data and facilitate bookkeeping processes. Such organizations prefer hiring a full-time bookkeeper to help manage or minimize the bookkeeper costs. According to the report we’ve been referencing, Bookkeeping is the service that drove the most revenue for firms in 2023 (42.9%).

Include all minor tasks, major services, and even complimentary services you currently provide. Their perception of value is what ultimately dictates their willingness to pay your price. They’re investing in the peace of mind, improved financial clarity, and strategic insights your services bring to their business.

Finally, how Much To Charge For Bookkeeping Services?

This will let you cater to different needs of bookkeeping services. If not, you can also consider sitting with the client, evaluating their needs, and, based on the services required, coming up with pricing that fits their needs. Hourly billing is a common and popular bookkeeping pricing structure. You set an hourly rate and charge clients based on each hour you spend working on their books. This is great for jobs where the amount of work varies from week to week or month to month.

Common Bookkeeping Pricing Models

This ensures you get paid accurately for the time you invest and streamlines your billing process. Here’s where you define the pricing structure for your various service models. Bookkeepers, especially new businesses (the ones who don’t have to make the sometimes messy transition to another pricing model), should avoid hourly billing for that reason. Setting the right price for bookkeeping services can be a bit tricky, but it’s all about balancing your skills and what your clients need. For more tips on setting your rates, check out our guide on competitive bookkeeping rates.

Bill pay

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. 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. By understanding these different pricing structures, you can choose the one that best suits your preferences and needs. Alternatively, you can offer a combination of these models to provide flexibility and cater to a  broader range of client requirements. When you specialize in a specific industry like healthcare or real estate, you gain deeper insights and expertise that general bookkeepers don’t have.

• However, for this client, I also do receipt management, which is probably the most time-consuming task I do for this preschool.
• The best choice often depends on the type of work, what your clients prefer, and what’s happening in the market.
• You’ll also need to factor in your experience and qualifications.
• Discover the direct correlation between standardized processes and boosted profits for your accounting firm.

Bookkeeping costs: Pricing considerations for bookkeeping services

Our latest firm report shows that the average firm juggles 225 clients, generating $623,296 in revenue annually. But with so much on their plates, it can be challenging to scale further. One of the ways to get 3 times a particular price is through menu pricing. This is basically coming up with different options and giving the customer the chance to choose.

But don’t just focus on the time it takes you to complete tasks. This means setting your rates based on your impact on your client’s business, not just the hours you work. This offers a solution for bookkeepers who serve clients with varying levels of bookkeeping complexity. It requires you to create different service packages with predetermined features and price points. These tiers allow you to cater to a wider range of clients by providing options that fit their specific needs and budgets. You simply track the time spent on each client’s tasks and multiply it by your hourly rate to determine the final fee.

There isn’t a one-size-fits-all solution when charging clients for your bookkeeping services. Hourly rates, monthly fees, and fixed packages are all common options, each with its own advantages bookkeeping pricing structure and disadvantages. With the evolution of technology, the accounting industry has seen the rise of online bookkeeping services. Virtual bookkeepers offer bookkeeping services online at a small fee, regardless of client size. The prices are lower than a house bookkeeper’s since they do not offer personalized services and have fewer overheads than a physical accounting firm with multiple employees.

Plus, you can specialize in the industries that interest you, while picking and choosing the specific services you’d like to offer. Here are a few things to consider when determining your bookkeeping pricing packages. Learn more about proposal software alternatives suited for bookkeepers and accountants. Also, it might be worthwhile to learn about Cone Practice Management Software. To facilitate this, an accounting firm can open a client portal where clients can interact and share important financial data related to the company.