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If you don’t have your clients pay in advance, you can also charge a late fee if a client doesn’t pay an invoice on time. This is typically a percentage of the invoice, such as 2% or 5%. You should document this in your client intake form or accounts receivable policies and also include your late payment terms on the invoice so the client knows the fee. Offering bookkeeping service packages at different tiers, such as gold, silver and bronze, is a great way to offer different pricing to clients of different sizes and needs.
You will be able to see the details of your transactions and expenses retroactively after all financial decisions for the month have already been made. What is the difference between small, medium, and large client accounts for bookkeepers? Let’s break down the different sizes to their revenue, employee numbers and other key metrics. Then we will compare this to the fixed-rate monthly pricing I charge for bookkeeping services along with the bookkeeping tasks I do for each one. My goal is to help you understand what these breakdowns look like for each client. If basic bookkeeping is all that your company needs at this stage, you’ll need to decide whether to do the bookkeeping in-house or if you should outsource.
You have an accountant doing your bookkeeping
This is when you’ll need more advanced bookkeeping, accrual-based accounting, and management or managerial accounting to help you make data-driven decisions. Standard bookkeeping services pricing is based on a predetermined hourly rate. The total amount you end up paying each month is calculated from the number of hours the bookkeeper spends managing your finances. Prioritize outcome and benefits instead of tasks and time. Once again, it’s a mindset shift where you price the client instead of the service.
Expenses are cash from the company to pay for items, such as salaries and utilities. If you have ignored that advice this far, it might be a good time to start doing your research before you dig the hole any deeper. A bookkeeping service does more than just record payables and receivables, or manage payroll services, they guarantee the security, scalability, and success of your business. For example, let’s say you spend about five hours a month on bookkeeping, and your average hourly rate is $75.
How Much a Bookkeeper Charges for Tax and Payroll Services?
If that interests you, then grab the FREE resource to package and price your
bookkeeping services. Whether you charge by the hour or offer a fixed fee, both are considered competitive pricing. Most bookkeepers who competitively price their services focus on tasks and time. Since you’re selling the technical side of your service, potential new clients will compare your rates to others who offer a similar service. You may want to charge a lower price if you only offer basic bookkeeping services, like data entry and financial statements. The price should match the time you expect to spend completing the work each month.
Do your due diligence to make sure you’re billing your clients fairly. But, don’t minimize your worth and expertise in the bookkeeping pricing packages pricing process. Consider how frequently you provide services to a client when making up your mind about what to charge.
A Backstage Pass to Disney’s Price Strategy
Keep reading to learn more about Zeni’s pricing structure and the value we deliver—and how it stacks up to traditional bookkeeping price packages and services. Ultimately, hiring a bookkeeper or financial management company will be different for every business and bookkeeper costs will vary. Deciding what kind of small business bookkeeping services you need, and what your business can afford is a great place to start.
- With us, you get a dedicated Account Manager who knows you and your business.
- With Zeni, you can log in to your dashboard and get a clear picture of your finances on a day to day basis because your financial information is updated constantly.
- They may be willing to pay a higher rate for bookkeepers who can do more work for them in less time.
- Outsourcing your bookkeeping is cost-effective due to the savings on both the rates and the overhead.
- One way you can determine how much to charge is to tie each task to a dollar amount.
To illustrate what a large client looks like, I’ll be using a physical therapist office I do bookkeeping for that generates about $1.2 million in revenue a year. This office employs 10 speech pathologists and general staff and circulates child clients who come in for their services. I do not offer full-service payroll as a bookkeeper, and I don’t do payroll in QuickBooks, but my clients have a payroll service they use. Even though I’m giving you the hours it takes me with each of these clients, I don’t necessarily keep track of them. I work a maximum of five hours per month for this client, which means sometimes I get my job done in less time.
Nail Your Pricing Strategy
Occasionally, there’s a problem where I need to dig to find the solution, or my client has a special request I need to take care of, and in those cases, it will take me the full five hours. I like to calculate my rate based on my max time, but then I’m rewarded if I work quickly and efficiently. Working a maximum of five hours per month on this particular client’s books, and charging $250 a month, I’m making right around $50 an hour, which is in the ballpark of where I want to be. Quickbooks and other software are tools to help you do your own bookkeeping.
Your budget for bookkeeping should fall within the general $250-$2,000 per month, but there are outliers in that range due to the many variables. Outsourced bookkeeping rates are typically priced by volume or number of transactions, and therefore, pricing needs to be customized to fit your business’ unique needs. In general, most bookkeepers fall within a range of $50-$100 per hour for their services. Owning a business means that you wear many hats, which can be a daunting prospect. In fact, 60% of small business owners aren’t confident in finance and accounting.
Everything you need to set the right pricing strategy for your firm
Accurate monthly and annual reports of financial data allow you to effectively run your company, enable you to better analyze operations, and help inform all business decisions. They depend on various business elements such as the number of accounts, period of books, etc. Generally, bookkeepers can charge somewhere between $30 to $45. Bookkeepers are in charge of maintaining your books closely day in and day out. They generally do all data entry into accounting ledgers or software. You want to hire a bookkeeper with the requisite qualifications.