For the same reason, if you need a bookkeeper with very specific industry knowledge or experience, costs may be higher than for a bookkeeper with a more general background. To get you started, we’ve collected a chart below of the average hourly wage for bookkeepers in each state. Keep in mind that these are averages, for the entire state – in large, diverse states, local salaries might vary a lot from the statewide average.
The majority of your clients will opt for the gold package. This package includes the services most of your clients need – and possibly a little extra. The basic card is their green card, which has the least amenities. The $10,000 initiation fee and $5000 annual fee offers cardholders exclusive amenities and concierge service. Wondering how much to charge for monthly bookkeeping is the million-dollar question.
Most likely, you already have an hourly rate in your mind that you’d like to be working at, and you likely did not get into bookkeeping to be making $10 an hour. It really depends on the amount of dan brown wave accounting small business accountant fees you’re currently paying and the specific financial needs of your company. Some businesses need accountants to manage more aspects of their finances than others.
What it Costs to Contract with a Traditional Bookkeeping Firm
It’s really hard to figure out what to charge someone without actually doing the work and finding out how much time your client’s account will take you each month. Many times you’ll be discovering things about the business as you get to know your client, and you may even find some issues your client didn’t know were there. According to one small business report, 71% of small businesses outsource at least one accounting task4. Whether it’s payroll, cash flow or tax challenges, the costs of each vary based on their complexity and hours required. 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. By taking the time to consider all of these factors, you will be able to determine how much to charge for your bookkeeping services.
- If the answer is yes, then size shouldn’t be your deciding factor.
- Bookkeeping is an accounting process of recording and maintaining accurate records of your company’s financial transactions.
- While this isn’t a new concept, the term value pricing has been more popular lately with bookkeeping and accounting professionals.
- The type and number of certifications a bookkeeper has can impact the actual cost of their service.
A small business client may see the value in bookkeeping services that help them save time and money. They may be willing to pay a higher rate for bookkeepers who can do more work for them in less time. There are several certifications you can get as a bookkeeper, but they are not necessarily required.
Education Level
Value-based pricing lends itself to custom pricing because every client is different and therefore values your services differently. Flat rate pricing is easy to standardize with a few pricing packages, which may look like a small, medium or large package based on the size of the business and your client’s needs. If you have been working as a bookkeeper for many years, you will be able to charge more than someone just starting out. The same is true if you have specialized training or certifications.
Otherwise, you may wind up missing out on profits or scaring off clients with high rates. When setting your bookkeeping services prices, consider creating different tiers for the size of the client. Now that we’ve gone over some of the factors you need to consider when pricing your bookkeeping services let’s take a look at a few different pricing structures you can use. Another potential advantage is specific industry experience. If you need or want specific experience with a wide range of companies similar to yours, an online provider might be the right place to start looking.
How Much Does Bookkeeping Cost (In-house & outsourced)
In addition to the monthly bookkeeping charge, you should also charge a one-time setup fee to set up the client’s books. This is especially important if you choose fixed monthly fee pricing, as the setup can be time-consuming and outside the scope of monthly bookkeeping. Regarding bookkeeping services, you will need to decide on a payment schedule. This can be either weekly, bi-weekly, monthly, or project-based. When deciding on a payment schedule, you should consider the scope of work and your client’s needs. Value-based pricing is a good option for bookkeepers who are confident in their abilities and can provide a high level of value to their clients.
How much does a bookkeeper cost for a small business?
Full-time bookkeepers keep track of all day-to-day operations, financial reporting, cash flow, tax filing, credit card accounts, customer invoices, monthly transactions, and much more. Small businesses often feel lost when it comes to bookkeeping, finance, tax and accounting. By taking away a lot of that anxiety, you deliver immediate relief. If you can structure a deal that keeps clients onboard for a few months, they’ll really begin to see the ROI.
If your accounting costs are above this, you might want to re-evaluate your needs. SCORE – a resource partner of the Small Business Administration (SBA) – worked out how much money small business owners spend on accounting each year. Consider how frequently you provide services to a client when making up your mind about what to charge. Some clients will be a one-time deal, while others may need you on a regular basis (e.g., quarterly). So, don’t be afraid to boast about your experience while marketing your accounting firm. And, use it as a competitive advantage when it comes to pricing your offerings.
Reanna initially worked with any client who was willing to pay her fees. Because she was service-oriented and wanted to please her clients, she let them dictate the processes. An hourly rate discourages efficiency simply because you earn less when you speed up your process.
Your financial transactions
The fastest way to answer these questions is to check what other bookkeepers are charging. But look for bookkeepers in your region, or serving your industry, or providing the same services as you. Because there’s so much at stake, setting prices can be daunting.
If you’re like my clients, you probably do some services without charging for them. Add the services which you currently do for free to your list. Hiring a bookkeeper that totally understands your industry and its regulations is an important distinction to make when you’re looking for the right person or team to fill the job. Businesses in the hospitality or property management industries may need different financial services than business owners of a restaurant franchise. Not every business owner needs the same level of financial management services. Depending on your industry, the size of your company, how many employees you have, and how long you’ve been operating, you may need more or less support.
As a result, the profession’s growth rates have slowed, but the Strategic Finance article notes growing gaps between the number of open jobs and the number of people qualified to fill them. 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.
Part time bookkeepers will charge between $400 and $800 per month for basic bookkeeping, excluding the benefits. 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.