How to Profitably Price Accounting and Bookkeeping Services Free eBook

how to price bookkeeping services

If you are working monthly, you can set up a recurring payment plan allowing your clients to make automatic monthly payments that come right out of their bank account. Fixed fee pricing is an attractive option for both bookkeepers and clients. For bookkeepers, it provides a guaranteed expected income, and for clients, it ensures that they will not be surprised by a large bill at the end of the month. When it comes to charging for bookkeeping services, there are a few factors that you will need to consider. Otherwise, you may wind up missing out on profits or scaring off clients with high rates. Again, the best course of action for you to take when setting prices is doing your research.

Just about every small business requires a basic form of bookkeeping in the beginning. In this initial stage of establishing your business, you will be primarily concerned with smaller responsibilities like recording transactions and paying bills. Do you work with wealthy clients or large businesses who expect an exceptional experience? Clients who expect a premium experience will look for products with a premium price tag. Self-employed bookkeepers can charge clients $35 or more per hour. That gives the client an expectation of your pricing so that you’re not wasting your time talking to people who can’t afford your services.

What Does Packaging Your Bookkeeping Services Mean?

Average monthly fees for this type of activity include from $500 to $2,500. One of the main benefits of such an approach is that you can customize the services you want the bookkeeper to provide. By taking the time to consider all of these factors, you will be able to determine how much to charge for your bookkeeping services. The key to accurately pricing is understanding and showcasing your value to your clients and prospective clients and then price your worth appropriately. This billing allows you to price your accounting services based on the time it will take you to complete the work.

how to price bookkeeping services

Even at the top of the range – $2,500 per month – it would cost your business $30,000 a year. Outsourced bookkeeping comes with none of the a la carte overhead expenses. With the idea of hiring a full-time accountant on your roster now put to bed, let’s consider what kind of bookkeeping you may need.

The three costs of early-stage bookkeeping

Focus on working with clients who will pay you what you’re worth, and don’t worry about the clients who won’t. You can also choose to withhold services until the invoice is paid. For example, if you are doing monthly bookkeeping, you can withhold the next month’s services until the current invoice is paid. Once you bookkeeping pricing packages decide what to charge, you’ll also need to consider additional terms for collecting payment from your clients. Value-based pricing lends itself to custom pricing because every client is different and therefore values your services differently. You can research the rates charged by other bookkeepers in your area.

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  • Look for a bookkeeping service whose business model relies on the success of others.
  • You should always be prepared to give your prospective client your minimum price and also tell them what your average client pays.
  • A packaged service is repeatable so you’re very likely to have effective methods in place to complete the work.
  • The highest end of these packages are suitable for divisions of public companies, startups with multiple locations with complex compliance needs and more.
  • A small business client may see the value in bookkeeping services that help them save time and money.
  • Instead of sticking with a safe but short-range pricing strategy, develop purposeful prices that will lead to more success.

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