Bookkeeping Pricing Plans & Packages

Location plays an important factor in pricing, although less-so since the pandemic and the rise of remote work and cloud accounting. 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. It is important to note that accounting functions are typically performed by a Chartered Professional Accountant (CPA). It’s a good idea to keep some extra cash on hand, so you aren’t caught flat-footed if a bookkeeping bill comes back higher than expected.

Accounting and Bookkeeping Costs Under Fixed Price Billing

Understanding the cost of bookkeeping before outsourcing is important for business owners. As we said in the beginning, bookkeeping is an essential element for the financial well-being of any business. It includes accurately recording all financial transactions such as purchases, sales, receipts, and payments. Most often they’re a small group of accountants or bookkeepers that serve a local geography, often with an additional team overseas. A common rule of thumb is that the real cost of an employee is 1.25 – 1.4x their salary – and possibly higher, depending on your local market conditions. Hourly wages for in-house bookkeepers range from $20.64 to $33.89, depending on the geographic location.

Explore what you can do with QuickBooks

Bookkeepers provide a variety of financial services found in the table below. If you need services a bookkeeper doesn’t typically provide, you may need to hire an accountant or CPA firm instead. Outsourcing accounting services allows you to reap the benefits of an accountant without the costs of a full-time employee, such as insurance and other benefits. Bureau of Labor Statistics, it costs about $47,000 a year to hire a bookkeeper for your small business. But, this cost can vary based on additional factors such as your bookkeeping needs and where you run your business.

The Pricing Playbook: Double Your Firm’s Prices in 4 Easy Steps

In any industry, experience is influential in pricing decisions, and bookkeeping is no different. It means quality of service, efficiency, virtual accountant calmness, problem-solving, and confidence. With tech taking up so much airspace in modern accounting, those who are fluent users are quickly outpacing those who aren’t.

• Many factors contribute to your decision about how much to bill your clients.
• A traditional bookkeeper will usually charge you an hourly rate to do your books each month.
• Virtual bookkeeping service providers are an incredibly efficient and budget-friendly alternative to traditional bookkeeping firms.
• So, you need to take your time when setting prices for your services.
• Whether you’re a self-employed professional, a business with employees, a business with contractors, or a freelancer, you can benefit from FreshBooks’ services.

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. When deciding if you should do your bookkeeping yourself or hire outside help, the decision is entirely recording transactions up to you. For example, if you have the time to handle bookkeeping yourself, you might continue to do so to save money.

• Determine the value you provide to clients and price your services accordingly.
• The lower end of the range typically includes basic bookkeeping for a small business that only requires five or so hours of work per month.
• Perfect option for keeping up to date when your transaction volume doesn’t require monthly upkeep.
• They know your company’s financials in detail, so they’ll be able to advise you on where it is best to spend and where to save.
• You have several options for handling your bookkeeping, but some important factors can influence the cost.
• 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.

• Xero and other accounting software have their own qualifications which, once earned, show you’re an expert in their product.
• By taking the time to thoroughly research options, check references, and ask the right questions, small businesses can secure reliable bookkeeping at cost-efficient rates.
• Meanwhile, the average hourly wage for in-house bookkeepers is approximately $27.27, ranging from $20.64 in Florida to $33.89 in Washington.
• These include basic and full-service bookkeeping, where the decision largely depends on your business goals and needs.
• As great as it is to talk about potential bookkeeping costs and get estimates, we know that seeing an actual average for your state can yield excellent value for you as a business owner.
• Business owners can then use those financial reports to make better-informed financial decisions to boost the growth and profitability of a company.

Partnering with Patriot earned this accountant a 50% cost savings from his previous provider, decreased his time running payroll, and more! Look at the types of services you offer and bookkeeping price packages compare what you currently charge to others. Many clients may be willing to pay a little more in exchange for trustworthy knowledge and training. Smaller clients generate less revenue than medium or large clients. Therefore, you generally want to charge a small client less because they have fewer needs. Using our proprietary cost database, in-depth research, and collaboration with industry experts, we deliver accurate, up-to-date pricing and insights you can trust, every time.