How Much Do Bookkeeping Services for Small Businesses Cost?

Today’s tech will skyrocket efficiency, attract top talent, and identify your firm’s next big growth opportunity…. You know the mechanics of bookkeeping, possess the software and how to create reports. Your clients care about what’s possible because the financials are accurate and current. This allows them to make better decisions and remain compliant with their taxes.

• Instead, let’s talk about the different ways to charge for bookkeeping services.
• This way of charging has changed quite a bit now that we have QuickBooks Online.
• As a result, they come with a higher monthly cost for business owners.
• Once again, it’s a mindset shift where you price the client instead of the service.
• Traditional bookkeeping firms are located all over the US.

As a bookkeeper, you can and should leverage your experience to increase your profit. If you’ve been working in the industry for 10 years, for example, you’ll have the client base, referrals, references, and body of work to quote a higher rate. For example, the National Association of Certified Public Bookkeepers (NACPB) offers a QuickBooks Online certification. Xero and other accounting software have their own qualifications which, once earned, show you’re an expert in their product.

Frequency of Service

The only drawback of paying a full-time accountant is that you may need to offer them employee benefits. 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. Bringing someone on as an in-house full-time https://www.bookstime.com/articles/how-much-does-bookkeeping-cost employee requires extra costs on your end, such as benefits and health care, whereas contractors are not entitled to these perks. You may not know how long you’ll need someone, but comparing the monthly bookkeeping cost of a contractor versus an in-house employee is the best way to see this angle side by side.

This lets them get started with your bookkeeping services. As they grow, they’ll eventually move up to the next tier. First, set time aside to list all of your bookkeeping services. If you’re like my clients, you probably do some services without charging for them.

You want to set a premium on certain services.

Many businesses rely on FreshBooks because of their flexible, trustworthy, and versatile system. 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. FreshBooks is an invoicing and accounting software for small businesses. Business owners who wish to automate their financial tasks can use some of the latest tools on the market. For example, the process is similar to hiring an in-house bookkeeper but you don’t have to add overhead costs for employees on the payroll.

• For one-off tasks like “QuickBooks setup” or “Create annual budget”, set a price to complete that task.
• Hourly wages for in-house bookkeepers range from $16.55 to $26.85, depending on the geographic location.
• Another option is to offer an hourly rate for the first job with a new client.
• Some bookkeepers charge $200 to $1,000+ per month for part-time services or $3,200 to $5,800 per month for full-time services.
• Also, if you pick a bookkeeping provider that offers a lot of services, you might pay a bit more, but it’s like getting a combo meal – you get everything you need in one place.
• Is not knowing how to charge for bookkeeping services holding you back?

It’s good to be aware of how your competitors are pricing their services if for no other reason than so you can know where you fall on this spectrum. Even better, try to learn from how other accountants are charging for their services. Keep an open mind and be prepared to change strategies if the change will help your business. The accounting software used can impact the price of the service.

Type of Bookkeeping Services Offered

Having an in-house bookkeeper means someone is always there to handle your bookkeeping tasks. They get to know your business well, which can make them more effective at their job. They can quickly answer questions and provide updates since they’re right there with you. However, hiring entry-level bookkeepers might be less expensive, but they may not offer the same level of service as more experienced, and possibly more costly, professionals.

Pricing strategy refers to the process of setting the best price for your product or service so you can be competitive in the market. Also known as “pricing strategy marketing,” pricing strategy is one of the essential elements of a marketing mix. Work through the big decisions around accreditation, services to offer, fees to charge, and how to find clients.

Automate common bookkeeping tasks and grow your client base

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. Location can play a major role in how much you charge for services. Price for bookkeeping services can vary from state to state.