How to Price Bookkeeping Services to Maximize Your Revenue

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Expect smooth expert services at low rates and quality service; we will manage and organize your books according to your preferences and needs. With updated experts, feel free to enjoy the benefits of all tax deductions. Bookkeeping provides you multiple benefits, including accuracy and organization. You can keep a better track of your financial transactions and make sure that all the customers are getting their bills correctly and paying your tradesmen promptly. Your practice can provide a truly superior service or experience and charge more than the competition.

  • This pricing structure allows us to offer services at lower rates to those who otherwise cannot afford our services at standard or solidarity rate pricing.
  • Let the values and ideals that guide your everyday work inform the way you structure the fees for your clients.
  • Fit Small Business content and reviews are editorially independent.
  • Typically you will need this level of financial management not only for yourself but for your key stake holders including banks, investors and advisors.
  • The average hourly rate for freelance bookkeepers ranges from $26.91 to $43.57.
  • If you decide to outsource, there are a few ways to go including local bookkeeping services, local CPA firms that offer bookkeeping services and specialized, national outsourced bookkeeping firms.

Unorganized processes can make onboarding new clients difficult. With Content Snare, you can easily organize and collect all the documents you need from clients. No matter what payment schedule you choose, you should always send your invoices in a timely manner. This will ensure you are paid for your work as soon as possible.

Pricing and charging

If fob shipping point wondering why we charge for our discovery call, please see our FAQ page. Ask if the bookkeeper or the accounting firm can provide an engagement agreement. An engagement agreement is a legal contract between a client and a service provider outlining the terms and conditions of the services to be provided. It typically includes details such as the project’s scope, each party’s responsibilities, the timeline for completion, and the payment terms.

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Outsourced bookkeeping services costjust a small fragment of that. Value-based pricing is when you price your services based on what your clients are willing to pay, or the value they perceive in your service. Value-based pricing isn’t all about charging the most, it’s about setting prices based on customer segments and information you have about the market. If you’re starting to evaluate what pricing strategy makes sense for your firm, you may consider taking a look at some common pricing structures other accounting firms use. We’ve rounded up five common pricing strategies and included an overview of some of the advantages and disadvantages of each. Check out this post for common pricing strategies and tips to keep in mind when setting your prices.

Sample Bookkeeping Packages

The sole purpose of bookkeeping is to process your financial transactions and make decisions profitable for your business. There are many other ways you can match your pricing structure to your values, each of them unique to you and your firm. When done correctly, this will effectively turn your pricing into a feature that clients regard as an advantage rather than simply a cost. I’m an entrepreneurial CPA that founded Xen Accounting, a 100% cloud-based accounting firm, in 2013.

The risk with project-based pricing is that projects may take longer than you estimate, or the scope of the project grows beyond the initial proposal. If you are working monthly, you can set up a recurring payment plan allowing your clients to make automatic monthly payments that come right out of their bank account. If you are working on a project basis, you will need to invoice your clients for the work you have completed. You should include all the relevant details on the invoice, such as the hours worked, the tasks completed, and the total cost.

Pay Structure

Our main goal is to give startup and small businesses of all types access to bookkeeping services at a reasonable price. This pricing structure allows us to offer services at lower rates to those who otherwise cannot afford our services at standard or solidarity rate pricing. Internally, we designate a limited amount of Concern for Community hours that help us to offer our services at discounted rates to those in need. Reproduction of this website, in whole or in part, is strictly prohibited.

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If your business should ever face an audit, having accurate and up-to-date bookkeeping records will ensure the audit process is a lot smoother. This is in addition to ensuring that all paperwork needed to prepare accurate income and other tax returns is in order. If a business lacks proper bookkeeping records to support its income tax returns, it runs the risk of having non-income items taxed as income, among other problems. Tax is one recurring burden faced by businesses all over the world. Working out your tax obligations can be quite technical and challenging, especially if you have little or no knowledge of bookkeeping and accounting.

Our bookkeeping services fees range between $99 to $229 a month, and it hinges on the number of bank accounts, credit cards, and the average of transactions you have got monthly. Small businesses often feel lost when it comes to bookkeeping, finance, tax and accounting. By taking away a lot of that anxiety, you deliver immediate relief. If you can structure a deal that keeps clients onboard for a few months, they’ll really begin to see the ROI. This billing allows you to price your accounting services based on the time it will take you to complete the work. Each employee will have a charge-out rate based on their experience as a markup on their hourly rate.

  • Again, the best course of action for you to take when setting prices is doing your research.
  • First, you’ll load up your engagement letter into Practice Ignition as a template under the “terms” section.
  • Chances are, clients are going to be more willing to pay an accounting firm more money over another if they have more experience.
  • She has had the opportunity to work with a wide variety of individuals and companies, which gives her a unique perspective on what it takes to be successful in the industry.

Since smaller customers are likely to be generating less revenue and are saddled with fewer bookkeeping tasks than the others, you should consider charging them less. Your tax process becomes smoother with the bookkeeping services since you have reconciled balance sheets, resulting in your tax return a piece of cake. The chances are low that you know a lot about accounting; this can cause your decision-making hurdles. You can make smart and enlightened decisions with to date bookkeeping services that we provide. The way you charge for your services shouldn’t be an afterthought in the way you run the rest of your business. Let the values and ideals that guide your everyday work inform the way you structure the fees for your clients.

Just let the clock run and you know what your margin is going to be on each and every hour that you spend working. Once you’ve determined a total price for all the add-on services, you may opt to include a discount for bundling multiple services or multiple companies. In the end, it’s up to you whether you want to offer a discount. It goes without saying then, that pricing will have a big bearing on your revenue and profitability. Think about what you and your client need out of a pricing structure. Do your due diligence to make sure you’re billing your clients fairly.

basic bookkeeping services

Price anchoring gives you a good way to convey that value by showing the buyer that they are getting a good deal. Once they accept, if you use Xero or QuickBooks Online for your own firm’s accounting, you can have all of the invoices and payments sync automatically as well. Once you have arrived at your price for a particular mandate, the next step is to have a mutual agreement in place that documents your understanding of the scope of work and price per month.

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But look for bookkeepers in your region, or serving your industry, or providing the same services as you. Technology can smooth away a lot of the data double-handling that traditionally made bookkeeping labor-intensive and expensive. You can now deliver a top-class service for a fraction of what it used to cost. That allows you to pitch a more affordable price while still generating a good margin. Consider using a job costing system so you can easily see profit margin or loss.

time and money

Today, the trend is moving heavily towards offering small business clients certainty upfront in the price they’ll receive before the service is delivered. Though this has presented difficulties in pricing for accountants. Many accounting firms that I’ve spoken with have had bad experiences trying to adopt fixed pricing and value pricing approaches.

It takes a bit more strategy & thought than the billable hour as well as some basic education in price theory. In basic bookkeeping and accounting, not all hours are created equal. If you have the expertise, you could increase your billable rate by offering payroll in addition to bookkeeping services. Outsourcing also offers many benefits that you can’t get with an in-house bookkeeper.