I’m trying to help my client get away from that wave reviews by training them to use their debit card to pay for vendors rather than having them invoice for a paper check. If you post them on your site, a potential client can choose your services like they’d choose a combo at a drive-thru. For another great article about using pricing bundles, check out this post over at FinePoints Bookkeeping. Once you put together a good system, including a pricing list and some standard bundles, this is a great way to bill for your services. These are written by experts in value pricing, and can help you it all out.
You may also want to increase pricing depending on what services are in demand and when they’re being taken advantage of (e.g., last-minute requests). The best way to do bookkeeping for small businesses is to come up with a framework, choose the method that works best for your business type, and keep track of all the details. Financial Cents can help you grow and scale your bookkeeping firm.
The Pricing Playbook: Double Your Firm’s Prices in 4 Easy Steps
Instead of a sales pitch, guide a discussion highlighting the value you deliver and how you can help clients achieve their goals. Our goal as entrepreneurs is to figure out what is the maximum that they are willing to pay and we need to remember that everyone is willing to pay a different price. You need to find the right balance between a price that wouldn’t scare away your target market but still doesn’t what is the difference between depreciation and amortization undervalue your expertise and ensures you’re profitable. I literally pick a number out of thin air based on feelings.
- Value-based pricing shifts the focus from the time you spend on bookkeeping tasks to the value you deliver to your clients.
- From there, you can raise your rates as you gain more experience, and many top out around $80 or more an hour.
- Marketing the services that add value to your clients outside of your typical responsibilities is a great way to increase revenue.
- Location can play a major role in how much you charge for services.
- In the consultation, you can take a look at their bank account, see how many transactions they have, and see how complex everything is.
Why is Pricing Accounting Services Difficult?
Even if you hire a part time bookkeeper, your management would still have to review their work. The fixed-rate pricing model offers a clear and predictable fee structure for both bookkeepers and clients. Basically, you establish a predetermined price for a specific service or a defined package of bookkeeping services. This price remains constant regardless of the actual time spent on the client’s work, providing certainty and budgeting ease for both parties. Part time bookkeepers will charge between $400 and $800 per month for basic bookkeeping, excluding the benefits. For full time services, expect to pay from $3,000 to $4,500 per month without the benefits.
How Much Does Bookkeeping Cost?
These tiers allow you to cater to a wider range of clients by providing options that fit their specific needs and budgets. The price that you’ll set will be based on your service offer which has to explicitly address the needs and pain-points of the small business owners identified in the meeting with your client. In a value pricing approach, your accountant’s fees will differ from client to client depending on the situation. The tax preparation fees for Client A may be different than the year-end tax preparation fees for Client B, even if the service is identical. 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.
Need software to automate tedious tasks and scale your firm? It reduces busy work, increases efficiency, reduces errors, and scales with you as your client base grows. It depends on which perspective you’re looking at it from… What they value is your expertise, your years of experience, your way of working with clients. The ideal client isn’t solely focused on the firm with the lowest price. They value expertise, reliability, and the ability to solve their financial challenges.
This is pushing accountants like you to ditch hourly rates in favor of a new pricing strategy and method, which sometimes creates confusion about how to set your accounting services fees. It’s easy to implement and understand the hourly rate strategy. You simply track the time spent on each client’s tasks and multiply it by your hourly rate to determine the final fee.
Put yourself in their shoes as small business owners, and work to deliver a solution they need. The benefit here though is that you can typically extract a higher price from the client than with a fixed accountant fees approach. If done right, value pricing should therefore result in higher margins.
2 Ways to Grow Your Bookkeeping Business
As a result, they come with a higher monthly cost for business owners. You want to hire a bookkeeper with the requisite qualifications. Freelance bookkeepers often come from different backgrounds, but this doesn’t mean they necessarily offer lower prices for their services. That’s why it’s important to consider a person who has at least a bachelor’s degree.
The complexity of a client’s bookkeeping needs will influence your pricing. Businesses with more transactions, multiple entities, or complex tax situations will require more time, resources and specialized knowledge to resolve. Hence a premium price, as you’ll be providing a how much should i charge for bookkeeping services averages and more solution beyond basic bookkeeping tasks.