Bookkeeping Pricing Packages & Plans Bench Accounting

how much to charge for bookkeeping services

This preschool employs six teachers and hosts about 100 students. But who wants the task of sifting through receipts and organizing statements when there’s a whole slew of business operations to attend to? It may be time for you to make the executive decision of hiring a bookkeeper to take the reins. Marketing the services that add value to your clients outside of your typical responsibilities is a great way to increase revenue. You can take into account the client, the job type, your experience, along with many other factors to give a fair quote. To set the correct pricing, you need to start by assessing the various factors that affect your rate.

As you can tell, how much you should charge as a bookkeeper can vary based on a lot of factors. So, you need to take your time when setting prices for your services. When setting your bookkeeping services prices, consider creating different tiers for the size of the client. Depending on the type of industry and your income goals, you can offer full-charge services, including payroll, managing fixed assets, and contributing to advisory conversations. Your value also rises when you’re better at customer service and data accuracy, finding holes, and asking good questions.

how much to charge for bookkeeping services

58% of accountants said updating technology has improved efficiency and productivity, which is vital for creating space to add the services that clients demand. Bundling services together in set packages is a good way to implement fixed-fee pricing. A common way to do this is by building a tiered system for different levels of service. By definition, fixed-fee pricing is inflexible, and in a complex industry, inflexibility can cost you money. 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.

Hiring an accountant costs $150 to $400 per hour on average, depending on their experience. A recently certified accountant may charge $50 to $150 per hour, while Certified Public Accountants (CPAs) with 10+ years of experience sometimes charge up to $1,000 per hour. Hopefully, you now have a better idea of what bookkeeping services you can afford and which services come with a lower or higher bookkeeper cost. Consider investing in simple software like FreshBooks for additional help in handling your finances without breaking the bank. The accounting software used can impact the price of the service. Maybe the freelancer is experienced in a single software and charges a lower rate for it.

How do different client sizes impact bookkeeper rates?

The costs a small business or nonprofit incurs for bookkeeping will depend upon many variables. It’s worth mentioning that you have to start working as a bookkeeper before you can apply for certification programs, and as we said, you need at least 2,000 to 3,000 hours to qualify. You’ll see variations of that range across the internet, with reporting a range of $15 to $30 per hour. And self-employed bookkeepers make an average of $38/hour, according toZipRecruiter. The Pros are licensed CPAs and EAs, meaning they study the latest deductions, credits, and everything else about taxes for you. When you file with a Pro, you’re filing with a licensed CPA or EA who will work to maximize deductions for your business.

how much to charge for bookkeeping services

Income for online bookkeepers and freelance bookkeepers may vary depending on several factors, such as experience, skills, location, client base, and the types of services that they offer. However, freelance bookkeepers may have more control over their pricing and may charge higher rates because of their specialized skills or expertise. Overall, there’s no clear answer since income will vary based on individual circumstances. Other factors that can impact the hourly rate include the freelance bookkeeper’s level of education, certifications obtained, such as QuickBooks ProAdvisor, and the software used. A specialty in additional services like payroll or financial analysis, the frequency of services offered, and even an expertise in certain accounting applications can also affect the rate.

Large clients with complex financial needs and higher transaction volumes often require more significant bookkeeping hours and may pay higher rates accordingly. However, as a general guideline, bookkeepers’ hourly rates can range from $30 to $100 or more, depending on the factors mentioned earlier. It’s crucial to discuss pricing and services with potential bookkeepers to get an accurate estimate of the cost. Value-based pricing often results in higher charges for bookkeepers who offer specialized expertise and tailored solutions.

Education Level

For one-time clients, you may decide to charge more since you know they may not return and have last-minute requests and needs. Do your research ahead of time to find average rates for services in your state. If needed, make adjustments to your pricing to reflect costs in your locality or state.

  1. This is also true if you start working with a new client in a new industry.
  2. Becoming certified in your accounting software is a green light for business owners.
  3. Each bank account will take you significantly more time because you will have to look up the statements individually and reconcile them.
  4. To illustrate what a medium client looks like, I’ll be using a law firm I do bookkeeping for that generates about $800k in revenue a year.
  5. If you think they’re too high for you to set reasonable rates, consider lowering them.

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. Though you don’t need to be a certified CPA as a bookkeeper, there are still certifications you can gain to justify a higher fee for your services. 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.

How much do freelance bookkeepers charge?

This part will answer some common questions to help you know what to expect when you need to hire a bookkeeper. First, let’s talk about what bookkeepers usually expect to get paid. The American Institute of Professional Bookkeepers gives us a good idea of how much. On average, bookkeepers might want to charge around $25 per hour.

Do your due diligence to make sure you’re billing your clients fairly. But, don’t minimize your worth and expertise in the pricing process. So, don’t be afraid to boast about your experience while marketing your accounting firm.

Main Takeaways for Hiring a Bookkeeper

Take your hourly rate times the amount of time you believe it is taking you each month and add a little more on top of that for added expenses. Starting with an hourly rate with a new client is beneficial because usually it will take more time to get their books set up, as they could have been quite a mess before you took them on. You may be helping them play catch-up to get organized not only in the current year, but also in previous years. We provide our clients with a modified form of cash basis bookkeeping. With this system, we record transactions as soon as the money has been deposited into your bank or charged to your bank/credit card.

Fixed-fee pricing allows you to increase profit as you increase efficiency—the more efficiently you can work, the greater the profit margin. Asking yourself these questions is vital to knowing the right bookkeeping pricing for you. Location plays an important factor in pricing, although less-so since the pandemic and the rise of remote work and cloud accounting. If you think they’re too high for you to set reasonable rates, consider lowering them. A major and effective way to do that is to move to a remote or hybrid work set-up. 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.

Bookkeepers handle basic, day-to-day management of a business’s finances. Accountants perform more complex tasks and help the business with long-term financial planning. 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.