How to Charge for Your Bookkeeping Services

What is taking the most time is being aware of their finances, organizing things, and pulling reports. However, it is true that the bigger the account is and the more transactions they have means the more time it’s going to take you. While hiring highly qualified professionals guarantees quality results, it does not come cheap.

  • The average hourly rate for freelance bookkeepers ranges from $26.91 to $43.57.
  • Obviously, if you’re an employee working as an in-house bookkeeper, you can’t offer value pricing.
  • They will keep your books in order and ensure your business has the financial strength required to operate.
  • Eight key factors will impact the hourly rate you’ll charge for your services.

Go ahead and take your time setting your prices to ensure you bill clients fairly. Last but not least, how often a client receives services could influence pricing. For example, you can charge frequent clients a lower rate than one-time clients. If you offer virtual services to clients, consider their location and whether you need to adjust your fees accordingly. Again, the average amount an accountant charges depends on their pricing structure.

How much do freelance bookkeepers charge?

Accounting takes that information and expands on it through analyzing and interpreting the data. Since we’re talking about outsourcing, we only feel it’s right to remind you of the partnership that’s available from Smith.ai. When you choose our dedicated virtual receptionists to handle your business communications and more, we’ll be there for everything, every minute of the day. From 24/7 phone answering and live website chat to appointment scheduling, lead intake, and so much more, we’ve got you covered. While you could manage your books and get by doing your own taxes to a certain degree as a small business owner, why would you want to when there’s help readily available?

  • Self-employed bookkeepers can charge clients $35 or more per hour.
  • You can discuss your prices in advance based on the work you’ve been asked to do.
  • If you find that you have a talent for and enjoy the process, you may consider starting your own bookkeeping business providing this service to others.
  • When you’re just starting out, you’ll likely want to keep a close eye on your revenue stream, and you may not have the resources to hire a professional bookkeeper.

The average hourly rate for a Quickbooks bookkeeper is around $18 to $25/hour. You earn more when considering value from the client’s perspective. Value pricing, unlike fixed fees, prices the client instead of the service. The move from an hourly rate, which solely charges from your time, to a fixed fee feels risky at first. Some bookkeepers add in profit margin as a buffer for the unexpected.

2 Ways to Grow Your Bookkeeping Business

I’m always pleased when a bookkeeper shares her decision to transition from an hourly rate to value pricing. Strategically shifting from an hourly rate to packages and value pricing bought added $100k+ to her bottom line. With the additional cash flow, she hired a bookkeeping assistant. By doing so, she now focuses her time primarily on business development and advisory services. If they do agree to provide retroactive records, you could end up with a pretty hefty bill.

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You can categorize your clients into small, medium, and large based on the amount of time you spend on their bookkeeping each month. A few months down the road, once you’ve immersed yourself into their business, have their books organized, and have a steady flow, you can switch your client to a fixed monthly rate. By then you will have figured out just how long it will take on a monthly journal entry for profit on sale of fixed assets basis to keep their books current. However, as your business grows, you’ll find that your time becomes much more valuable and a scarce resource. Hiring a bookkeeper can help ensure your records are accurate, your books are balanced, and your invoices are paid on time without you having to do the work yourself. When you do it yourself, you may miss things or make costly errors.

Signs it’s time to hire a bookkeeper

In any industry, experience is influential in pricing decisions, and bookkeeping is no different. It means quality of service, efficiency, calmness, problem-solving, and confidence. To set the correct pricing, you need to start by assessing the various factors that affect your rate. Some are more impactful than others, but they should all be considered. I tried using bill.com with this particular client, but I actually didn’t really find it as helpful as I would have hoped.

They can give valuable advice and personal tax reduction suggestions and answers to critical questions at any time of the year. It is essential to remember that these are the average fees; the cost will differ if parts of your tax filings are under exceptional cases and take longer for the accountant to complete. In these circumstances, accountants may charge you more consultation fees and overtime work. I don’t think this is as viable for someone doing a regular set of recurring services each month. However, if you provide less recurring services such as consulting, analysis, and accounting software support, this could be an option for you. To add insult to injury, I got paid $5.00/hour to clean the office over the weekend.

Specialized bookkeeping

Some of the best investments you can make as a business owner are those which allow you to focus on the core of your business while outsourcing tasks that aren’t your specialty. The QuickBooks ProAdvisor certification program is ideal for freelance bookkeepers because it allows them to get certified for free with no strings attached. The more certifications a provider has, the more qualified they are expected to be at what they do. As such, a provider with two certificates will charge a higher rate than one with just a single certificate. Keeping up with the records in your small business might be a task you are willing and able to tackle yourself.

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