You can read more about how to implement the 3-tiered pricing system here. But more importantly, there’s a concept called price anchoring. Asking yourself these questions is vital to knowing the right bookkeeping pricing for you.

A common way to do this is by building a tiered system for different levels of service. 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. If you’re contracted as a bookkeeper, your client isn’t in charge of your sick time or vacation time or disability or leave or anything that they may have to think about with an employee. As a contractor, the main thing that you are saving an employer–or free lawn care invoice template your client in this case–is TAXES!

How to package your bookkeeping services as a small business

Another option is to offer an hourly rate for the first job with a new client. 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. For clients with more than $1 million in revenue, it would be good to look at how much they would pay a full-time bookkeeper, sitting in their office, working 40 hours a week. Charging hourly for your services is one of the most commonly-known methods. You see this with regular employment, some service-based businesses such as your plumber or lawyer, and many bookkeepers choose to start with an hourly rate.

Obviously, if you’re an employee working as an in-house bookkeeper, you can’t offer value pricing. While you’re waiting for your chance to branch out and start your own small business, you can use this time to practice your negotiation skills. Making a strong case about why you deserve a raise will get you used to the process when it’s time to raise your rates with your clients. Where you live, what type of bookkeeping services you offer, and what type of clients you work with affect that answer. A full-time bookkeeper in a major city providing advanced bookkeeping services means a different pricing structure than a part-time bookkeeper working in a small town for a local diner.

These are written by experts in value pricing, and can help you it all out. accounting study guide by accountinginfo.com You can discuss your prices in advance based on the work you’ve been asked to do. You’ll have access to all the templates, scripts, and frameworks you need to fine-tune your pricing strategy from start to finish. Then compare the cost of delivering the service with the cost you will charge the client and ensure it meets your desired margins. Here, you want to determine the services the client will need and the scope of those services.

Bookkeeping costs: Pricing considerations for bookkeeping services

1. Value-based pricing, instead, rewards experience and tech fluency.
2. However, there is quite a bit that goes into the pricing beast, and it’s not always as cut and dry as this.
3. 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.
4. At the beginning of your working relationship, there could be quite a bit of cleanup you have to do for the client’s books, and that can be time consuming.
5. On the other hand, there are times you can charge a much higher hourly rate.
6. In this guide, we’ll explore the different pricing models to help you strike the right balance and earn more revenue.

Many of the busiest firms I see are stretched too thin, doing too much for too little pay. For example, a Certified Public Accountant (CPA) is paid more than a traditional accountant due to having to meet higher education and licensing requirements depending on their state. Sales, production, and employee retention are all extremely important.

Talking Points to Snag that Client

You want to hire a bookkeeper with the requisite qualifications. Freelance bookkeepers often come from different backgrounds, but this doesn’t mean they necessarily offer lower prices for their services. That’s why it’s important to consider a person who has at least a bachelor’s degree. Many businesses rely on FreshBooks where do dividends seem on the monetary statements because of their flexible, trustworthy, and versatile system. You can use FreshBooks if you have your own bookkeeping service, or have trained an existing employee to handle it, or have an outsourced accounting company doing the job for you. The best approach to bookkeeping is to translate the work of keeping your financial records and books in order into dollars.

To add insult to injury, I got paid $5.00/hour to clean the office over the weekend. In-house accounting, on the other hand, gives you peace of mind knowing that someone you know and trust is handling your books and financials. The only drawback of paying a full-time accountant is that you may need to offer them employee benefits.

It’s reasonable for a new bookkeeper to charge around $40 an hour, but you’ll need to do some research in your area to make sure that is a good starting point. From there, you can raise your rates as you gain more experience, and many top out around $80 or more an hour. And if you want to dive even deeper into pricing your bookkeeping services effectively, check out my coaching program, Future Firm Accelerate. Clients are charged based on the number of hours worked, multiplied by a predetermined hourly rate. When deciding if you should do your bookkeeping yourself or hire outside help, the decision is entirely up to you. For example, if you have the time to handle bookkeeping yourself, you might continue to do so to save money.