It means you set a fee for each service you offer and provide clients with a ‘menu’ of sorts, with corresponding prices. To make things more complicated, a freelancer, small business, bookkeeping firm, or an accounting firm will offer different average rates for bookkeeping services. When determining how to price bookkeeping services, there are several key factors to consider. These factors not only impact the time and effort required to deliver the service, but they also influence the perceived value of the service in the eyes of your clients.

Should I hire a bookkeeper or do it myself?

Whether you outsource your bookkeeping or decide to hire someone in-house, it’s no question that this is an important position to consider when managing your business. Let’s jump into the details and explore your options for bookkeeping as a small to medium sized business. Accountants maintain a wide range of skill sets, including managing spending and budgets, taxes, and analysis of financial statements. To be exceptional at these tasks, accountants must complete years of training and earn special certifications, which their salaries reflect. Depending on the type of accountant, years of experience, and certifications, you could be paying a pretty penny. The benefit of project pricing is that it allows for close tracking of costs and revenue at each milestone.

Whether you opt for basic bookkeeping or full-service bookkeeping and accounting, either option can help you be better prepared come tax season. And now that you know the answer to the question “How much does a bookkeeper cost? ” you may wonder what exactly a bookkeeper does and the different types of bookkeeping services you can pay for. The number of tasks you assign to them directly impacts the price of each bookkeeping service. FreshBooks is an invoicing and accounting software for small businesses.

Not every business owner needs the same level of financial management services. Depending on your industry, the size of your company, how many employees you have, and how long you’ve been operating, you may need more or less support. 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. To summarize, the cost of monthly bookkeeping packages is quite variable among providers.

1. Entering your busy season or dealing with employee turnover can distract business owners— resulting in inefficient infrastructure and plateauing growth strategy.
2. For full time services, expect to pay from $3,000 to $4,500 per month without the benefits.
3. Hiring an accountant costs $150 to $400 per hour on average, depending on their experience.

When deciding if you should do your bookkeeping yourself or hire outside help, the decision is entirely up to you. For example, if you have the time to handle bookkeeping yourself, you might continue to do so to save money. On the other hand, if you’d like to use the time you spend bookkeeping focusing on other aspects of your business, then the cost of a bookkeeper may be worth it. But who wants the task of sifting through receipts and organizing statements when there’s a whole slew of business operations to attend to? It may be time for you to make the executive decision of hiring a bookkeeper to take the reins. Discuss how bookkeepers leverage software, automation, and AI tools to maximize efficiency and minimize manual work.

Scope of services required

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. Bookkeeping prices fall at the low end for small businesses, while large companies requiring daily bookkeeping services pay more. First, clearly outline your specific bookkeeping needs so you don’t overpay for unnecessary services. Provide details including your average monthly transaction volume, frequency of reporting needed, accounting software used, inventory tracking requirements and any industry specific needs.

Per transaction pricing

Ian discussers the phases of transitioning to value pricing (setup, implementation, and execution) and walks you through the process in ten proven steps. Discover the direct correlation between standardized processes and boosted profits for your accounting firm. Asking yourself these questions is vital to knowing the right bookkeeping pricing for you. Location plays an important factor in pricing, although less-so since the pandemic and the rise of remote work and cloud accounting. So to bill correctly, it’s important to identify what you’re charging for, the way you charge, and what adjustments you can make to improve your bottom line.

Value-based pricing

You are not just providing basic bookkeeping services like maintaining the balance sheet or handling bill pay. Your service goes beyond the data entry tasks that could be handled in-house. Your expertise is in streamlining workflow, optimizing cash flow, and delivering accurate financial insights that empower small business owners and startups. Frame your pricing within this context of value, emphasizing the long-term benefits your clients will gain. While this may sound simple enough, the traditional model has its challenges. If you’ve transaction account ever managed a business owner’s account, you’d know that the workload isn’t always steady.