How Much Should I Charge for Bookkeeping Services? Averages

Freelance bookkeepers often manage multiple clients, so they might not be as readily available as an in-house option. You also lose some direct oversight, which can be challenging if you need immediate support. On top of this, it is also a bookkeeper’s job to keep everything organized. That way, when it is time to file your small business taxes, you can easily access all the data you need. Bench simplifies your small business accounting by combining intuitive software that automates the busywork with real, professional human support.

• And, use it as a competitive advantage when it comes to pricing your offerings.
• Before bringing on a new customer, you should meet and assess their situation.
• With a direct employee, you’ll have control over their day-to-day and can dictate how things are done.
• Hourly wages/salary costs, however are not the full story for an in-house hire.
• Along with considering the above factors when setting your pricing for bookkeeping services, you’ll also want to set up a pricing structure that works for you and your firm.
• You should be charging your clients accordingly for your services.

How to package your bookkeeping services

• For example, 200 monthly transactions may only cost $0.75 each, or around $150 total.
• This could involve raising hourly rates, charging fixed fees based on the current value of services, or implementing surcharges to cover specific inflationary costs.
• Ideally, prioritize the experience factor when hiring a bookkeeper.
• If you want your books to be taken care of without direct management by you, outsourcing is the way to go.
• But breaking it down and building your pricing model by considering all the relevant factors will give you a reasonable solution to test.

With us, you can get the best and most affordable bookkeeping services around. Virtual bookkeeping service providers are an incredibly efficient and budget-friendly alternative to traditional bookkeeping firms. The average hourly rate for freelance bookkeepers ranges from $17.01 to $28.48. Depending on your geographic location, this amount will be more Bookstime or less than the average national rate of $22.75 per hour. Another option is to work as an in-house bookkeeper, typically earning a salary of $59,429 per year, or the national average of $27.27 per hour. However, depending on where you live, average salaries can range from $42,936 to $70,482 per year.

• Most startups and small businesses cannot afford to spend such high amounts on hiring a bookkeeping firm.
• Now that you’ve mastered the costs and various factors involved in pricing your service consider combining all of this information into a bookkeeping pricing package.
• It’s also important to make sure they have experience in accounting software you use.
• These technological advances mean that modern bookkeepers are able to focus on more strategic work, providing additional value to their clients.
• However, specific, targeted landing pages can lead to even greater conversions.
• As we mentioned earlier, bookkeeping pricing packages offer a particular service at a flat price.

What does it cost to work with a virtual bookkeeping service provider?

• This means the accountant can maximize tax savings while avoiding unnecessary penalties by completing your taxes accurately and on time.
• Online bookkeeping services live Quickbooks LIve offer the convenience of 24/7 access to your financial data without the overhead costs of hiring someone full-time.
• This helps match the right bookkeeper’s expertise and service level to your business.
• This is essentially a part of accounting, and an accountant or a bookkeeper can manage it, depending on the company’s needs.
• Not every self-employed worker or small business owner needs a bookkeeper.
• Do your due diligence to make sure you’re billing your clients fairly.
• Do your research ahead of time to find average rates for services in your state.

This can result in significant time and cost savings that get passed on to you. For example, reconciliation software, invoice automation and receipt tracking apps. Hybrid models are also common, combining a monthly base fee with per-transaction or hourly overage charges. Having everything centralized in TaxDome helps us, and it helps the client. Setting packages and covering prospects is a huge part of any client acquisition strategy.

Average bookkeeping costs

The total cost will depend on how long it takes them to CARES Act do the work. For this reason your costs with a traditional firm can vary a lot, even between months. The top three states with the highest freelance bookkeeping rates are Massachusetts, Washington, and Colorado, with average hourly rates of $28.48, $27.23, and $26.81, respectively. As inflation rises, the cost of doing business increases for bookkeepers. You’ll face higher expenses for things like office rent, utilities, software subscriptions, and employee salaries if you have staff.

How much to charge for bookkeeping?

In recent years, businesses outside of the SaaS community have moved towards productized subscription services bookkeeping price packages because they benefit both themselves and their clients. The other thing to consider is that these economic pressures also affect the other bookkeepers where you live. So, expect that reality to be reflected in the prices they charge, or in other words, the prices you’re competing against. For example, the rent and general cost of living in your area will add to your fixed expenses and minimum profit margins. What is essential here is to get an accurate figure of your costs.

While Bench doesn’t offer accrual accounting services, we specialize in a modified version of cash basis bookkeeping. This approach allows us to record transactions as soon as funds are deposited into your bank or charged to your bank or credit card. Figuring out the right price or the right way to package your services isn’t easy. But breaking it down and building your pricing model by considering all the relevant factors will give you a reasonable solution to test. Though you must be willing to make changes if it isn’t working for you—even if that means having tough conversations with clients.