How Much Does a Bookkeeper Cost in 2023?

Again, you are trying to figure out what you think your small business client would pay. In the conversation with your client, you’ll have to uncover and establish value with well-crafted questions. Just Google something like “value pricing questions” to see what kind of interview questions help. Value pricing takes a bit of a different approach compared to fixed pricing. With Content Snare, you can easily organize and collect all the documents you need from clients.

• A bookkeeper's role is to maintain a business's financial health.
• We are intentional in our placement as we want the bookkeeper to be a great fit for your team.
• Unlimited referrals Refer a fellow entrepreneur and receive $150 and a free month of bookkeeping for every referral who becomes a Bench client.
• 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.
• In fact, I was actually proudly one of Practice Ignition’s first customers on the platform back in 2013.

At BELAY, we prefer that our bookkeepers have bachelor’s degrees or five years’ experience – or both. The one big trick with fixed pricing and value pricing for a bookkeeping service is really all about defining your service offering in advance. You should not present a price without an adequate definition of the work that you’ll be providing per month.

Financial Reports Every Nonprofit Should Monitor

The services provided by a virtual bookkeeper are comparable to those of an in-person bookkeeper but are conducted entirely online, using cloud-based software and online communication tools. The top three states with the highest freelance bookkeeping rates are Massachusetts, Washington, and Maryland, with average hourly rates of $43.57, $40.18, and $39.09, respectively. Prices matter when it comes to running a business, but a bookkeeping service is not a place where you want to cut corners. Part of the advantage of a professional service is that it can save you money by reducing the time spent on basic tasks.

For custom pricing, you’ll need a general idea of how much you charge for each service and then consider if the total cost for all the services for the client is reasonable. With customized pricing, you can either charge a flat monthly fee or hourly. You know what they say—“You get what you pay for.” And, that saying holds true for bookkeeping services. You should be charging your clients accordingly for your services. Otherwise, you could wind up losing clients to other firms (and no bookkeeper wants that).

Frequency of services

You’ll need to set a menu of all of your additional services and then attach a price to each one. For as long as many can remember, accountant fees have always been based on the billable hour as a pricing strategy. 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. Our goal is to get you due diligence ready, and we charge an onboarding fee to get your financials and books in order. There may be additional costs to correct previous months’ financials.

• Another factor to consider is the size of your client's business.
• Remember, even small businesses can be complex and may need additional support because they have fewer resources.
• Bookkeeping is one of the basic requirements for running a company, but it is also one of the most complex and challenging aspects of business ownership.
• It records all your financial metrics and assures you maintain regulatory compliance at the state and federal levels.
• Small clients often have simple bookkeeping needs and small revenue, so you may want to charge them less.
• This could mean determining how many bank accounts, credit card accounts, or number of transactions in a month.

The problem with hourly billing is that it can lead to unpredictable fees for your client, and there is no incentive for you, as the bookkeeper, to complete your work more efficiently. It is best for this pricing structure to implement software for accountants that track time to ensure your time tracking is efficient and accurate. Whether you offer bookkeeping price packages or custom pricing, it is important to determine how many bank accounts and credit card accounts need to be reconciled. Each pricing package should clearly outline how many bank account reconciliations are included and an approximate number of bank and credit card transactions. The lesser cost of a part-time bookkeeper (as opposed to a full-time employee) is the biggest benefit for companies. A part-time bookkeeper will usually cost more per hour than full-time bookkeepers, but the total monthly cost will be less.

The two components to bookkeeping services pricing

But with 12 months of accurate books, your finances are accurate and ready to file taxes at year end. Hourly wages for in-house bookkeepers range from $16.55 to $26.85, depending on the geographic location. This translates to an average annual salary that ranges from $27,500 to $71,500. Find a company that offers 24-hour service so that they can help you when you need it most.

The highest referral a business owner can find is from a friend in the industry. If you’re looking at an online bookkeeping service, verify their ratings. Ask how long they’ve been in business, and whether they have accountants on staff to help with the bigger questions.

Charge your worth when it comes to bookkeeping services

They will generate precise financial statements, such as income statements, balance sheets, and cash flow statements, giving you all the necessary information. As a small business owner, you can rely on our bookkeeping virtual assistants for bookkeeping for startups all your payroll needs. From processing employee payments to managing employee benefits, we ensure to take care of everything. You won't have to pay additional benefits or overhead costs when you hire a bookkeeper from one of these services.

• This makes it easier to manage your business bookkeeper costs by factoring in a consistent monthly rate.
• Many accounting firms that I’ve spoken with have had bad experiences trying to adopt fixed pricing and value pricing approaches.
• So, it’s important to know how much to charge clients based on location.
• The cost depends on the state of your books when we take them over.
• A higher plan may include several hours of monthly phone support, account payable collections, and coordination with a tax preparer at year-end.
• We’re familiar with all the small business tax deductions and compliance requirements.

They are in charge of maintaining your financial books by keeping track of expenditures and revenue. This is performed by entering data into an accounting software like QuickBooks. You can get an idea of market rates by talking to other bookkeepers in your area or searching for bookkeeping services online. If there are few bookkeepers or very high demand in your area, you can command a higher price for your services.