How to price your bookkeeping services
Though you must be willing to make changes if it isn’t working for you—even if that means having tough conversations with clients. When implementing fixed-fee or value-based billing, it’s easy to under or overestimate the time it will take you to complete a task. Having an open dialogue with clients about this when you’re first signing them can be a good idea to pre-empt adjustments down the line. However, there are slightly more sophisticated ways to package your bookkeeping services that encourage repeat clients, and maximize profits. For certain jobs, it’s wise to make this fixed-fee model scalable. For example, you might process a certain number of transactions for one cost, but going over that incurs a different fee.
- The way you price your accounting services shouldn’t be arbitrary.
- What is the difference between small, medium, and large client accounts for bookkeepers?
- A lot of people often wonder how much to charge for bookkeeping services.
- Once you have a clear idea of what services you can offer, start grouping your services in a way that makes sense both for you and the client.
- With customized pricing, you can either charge a flat monthly fee or hourly.
- If you choose its chief financial officer (CFO) services, your CFO will be a certified public accountant (CPA) at a minimum.
It means quality of service, efficiency, 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. In a survey by PracticeWeb, 66% of clients surveyed said they would pay more for a ‘tech-savvy’ accountant. Though you don’t need to be a certified CPA as a bookkeeper, there are still certifications you can gain to justify a higher fee for your services. To set the correct pricing, you need to start by assessing the various factors that affect your rate.
Get Paid To Give Advice Ideas (Make $50 An Hour in 2024!)
Obviously, if you’re an employee working as an in-house bookkeeper, you can’t offer value pricing. While you’re waiting for your chance to branch out and start your own small business, you can use this time to practice your negotiation skills. Making a strong case about why you deserve a raise will get you used to the process when it’s time to raise your rates with your clients. Where you live, bookkeeping pricing packages what type of bookkeeping services you offer, and what type of clients you work with affect that answer. A full-time bookkeeper in a major city providing advanced bookkeeping services means a different pricing structure than a part-time bookkeeper working in a small town for a local diner. Consider implementing value-based pricing, where your fees are based on the value you provide to clients.
Chris is a content manager for Canopy, joining the team with a combined eight years of experience as a copywriter, editor-in-chief, and content marketer. He’s a skilled wordsmith and strategic thinker who shapes brand identity through compelling content and fosters a collaborative and innovative environment. With a passion for storytelling and a dedication to excellence, he is a driving force behind any company’s success in content marketing.
Let’s Get Started 🚀
Contractors perform special services for companies and aren’t hired on as employees. For this client, I do some tallying of their hourly employee amounts and then note how much is deducted for their health insurance and retirement savings. All I need to do is fill out the spreadsheet, and then I send it off to the payroll department. I tried using bill.com with this particular client, but I actually didn’t really find it as helpful as I would have hoped. I often just use the bill pay directly through the bank with this client, as it’s relatively easy to do, and many banks will do that service for free. Another extra task that I do for this client is to write checks for this preschool, so I am a signer on the bank account.
For another great article about billing for bookkeeping services by the hour, check out this post over at Fit Small Business. Instead, let’s talk about the different ways to charge for bookkeeping services. Ensure that your pricing is compliant with legal and regulatory requirements, including tax laws. This is especially important if you’re providing services related to taxes. Our catch-up bookkeeping services are designed to get you back on track and up to date.
Get Paid To Read Emails Without Investment Ways in 2023!
Choose which method feels right for you in terms of communicating the changes to your clients. I highly recommend you include a follow-up email if you choose to notify them verbally. This way, you can reference the changes at any time and they also have a record of the conversation. If you reach the 10 hours and you still have more work to complete, bill the client for another 10 hours. If the last leg of the project only takes 5 hours, you can refund them for the extra time they paid or give them a credit on their next invoice. The base price is non-negotiable, and should indicate to prospective clients that you will charge them no less than this amount for your services.
Though you must be willing to make changes if it isn’t working for you—even if that means having tough conversations with clients. When implementing fixed-fee or value-based billing, it’s easy to under or overestimate the time it will take you to complete a task. Having an open dialogue with clients about this when you’re first…