In any industry, experience payment processing fees is influential in pricing decisions, and bookkeeping is no different. It means quality of service, efficiency, calmness, problem-solving, and confidence. Value-based pricing, instead, rewards experience and tech fluency.
- It means quality of service, efficiency, calmness, problem-solving, and confidence.
- Reach out to 3-5 recommended local bookkeepers for quotes based on your defined scope of work.
- The type and number of certifications a bookkeeper has can impact the actual cost of their service.
- They would know what services to expect from you, and you could charge an automatic, monthly fee.
- 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.
- There are a number of certifications you can get as a bookkeeper.
The Pricing Playbook: Double Your Firm’s Prices in 4 Easy Steps
Experienced bookkeepers can charge more than $25 per hour, while entry-level bookkeepers make around $19 per hour on average. More than 5 years of experience typically results in command rates that are 25-50% higher. Some businesses only need the basics, such as recording transactions and paying bills, while others require monthly closings, reporting and analyzing financials for insights. Advanced budgeting and forecasting, audit support, or staff controller services add to costs even further. 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. Please see the chart below with data pulled directly from the US Bureau of Labor Statistics 2022 data to learn more about the average salary and hourly rate for bookkeeping.
Do your research ahead of time to find average rates for services in your gross margin vs. contribution margin state. If needed, make adjustments to your pricing to reflect costs in your locality or state. Simplify your search for the perfect bookkeeping services by tapping into platforms such as the TaxDome Advisor Directory. These resources allow you to search based on the service you need or the location you prefer, ensuring that you can find the perfect fit whether you’re looking for local or remote assistance. The benefit of project pricing is that it allows for close tracking of costs and revenue at each milestone.
On the other hand, bookkeepers are the more affordable option. They require the least amount of education and focus on recording transactions, whereas an accountant or CPA spends their time analyzing financial data and generating financial statements. According to Glassdoor, it costs about $42,000 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. A full charge bookkeeper has a larger responsibility and full oversight over a company’s finances. If you’re not there already, it’s worth upskilling to get to that point, as you’ll be able to justify higher pricing packages.
questions to ask yourself before hiring a bookkeeper
Though you must be willing to make changes if it isn’t working for you—even if that means having tough conversations with clients. Bundling services together in set markdown vs markup packages is a good way to implement fixed-fee pricing. A common way to do this is by building a tiered system for different levels of service.
When you decide to switch away from your average hourly rates to a flat monthly fee, your instinct is to still base it on your time. You discover that it takes around 40 hours per month to complete your monthly bookkeeping tasks. Then you multiply 40 by your old hourly rate of $40, and you decide to charge a flat $1,600/month. Ultimately, hiring a bookkeeper or financial management company will be different for every business and bookkeeper costs will vary.
Bookkeeping services pricing guide: How to nail your pricing
If you decide to become certified as a QuickBooks ProAdvisor, you’ll have the added benefit of a free subscription to QuickBooks Online Accountant. While having a degree and/or bookkeeper certification will give you the knowledge that you need to get your foot in the door, having practical work experience is equally valuable. The more experience you have doing actual bookkeeping work, the more confident you’ll be in your skills, which will translate into higher billable rates. The American Institute of Professional Bookkeepers (AIPB) certification program is ideal for someone who doesn’t have any formal education in bookkeeping.
Hiring an in-house bookkeeper involves several costs beyond just their salary. Additional expenses include benefits such as health insurance, retirement contributions, paid time off, and payroll taxes. Depending on the location and experience level of the bookkeeper, salaries can vary widely. Even if you switch to fixed fees or a value pricing structure for your main bookkeeping services, you may have additional services that command a premium. Hiring an outsourced bookkeeping agency can seem overwhelming at first glance— but it can be an extremely cost-effective, simple solution with many benefits that can help your business grow. The cost of outsourcing your bookkeeping can differ depending on your needs.
