Join over 35,000 US-based business owners who have streamlined their finances and have grown their businesses with Bench. Learn how to build, read, and use financial statements for your business so you can make more informed decisions. By definition, fixed-fee pricing is inflexible, and in a complex industry, inflexibility can cost you money. With an hourly rate, unless you can find more hours in the day, it’s difficult—borderline impossible—to drive up profit significantly. 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. As a small business owner, you can rely on our VAs for all your payroll needs.

Signs it’s time to hire a bookkeeper

Rather than assuming a set price range, it’s important to evaluate each firm’s specific offerings. Make sure to clarify what’s included at each tier and determine what meets your business’ particular needs before making a decision. How much should you expect to pay now that you know the main factors that affect bookkeeping rates and the various pricing models used? While specific prices depend on your unique business circumstances, below are some overarching averages to use as general benchmarks when budgeting and evaluating options. Keep in mind that these are range-wide approximations, and your business may fall above or below the averages. Online bookkeeping services live Quickbooks LIve offer the convenience of 24/7 access to your financial data without the overhead costs of hiring someone full-time.

• Sign up today and we’ll do one prior month of your bookkeeping and prepare a set of financial statements for free.
• What is essential here is to get an accurate figure of your costs.
• A recently certified accountant may charge $50 to $150 per hour, while Certified Public Accountants (CPAs) with 10+ years of experience sometimes charge up to $1,000 per hour.
• While online providers may offer less personalized service compared to traditional firms, they can be a more affordable option for small businesses and startups with limited budgets.
• Rates can vary widely based on elements such as a business’ size, industry, location and specific needs.
• Finally, an accountant’s knowledge of the business financial statements can help you make informed decisions when it comes to managing cash flow and tax planning for the future.

The Pricing Playbook: Double Your Firm’s Prices in 4 Easy Steps

• The professional services accounting software used can impact the price of the service.
• So, it’s important to know how much to charge clients based on location.
• Such billing allows you to pay only for work done, but rates can add up quickly.
• However, as bookkeeping and accounting software tech stacks have evolved, adopting the hourly pricing model might mean leaving money on the table.
• You also get the benefit of a higher expertise level compared to training your office manager for bookkeeping.
• Another option is to offer an hourly rate for the first job with a new client.
• A strong alternative to hourly billing is fixed-rate (or flat-fee).

She has owned Check Yourself, a bookkeeping and payroll service that specializes in small business, for over virtual accountant twenty years. She holds a Bachelor’s degree from UCLA and has served on the Board of the National Association of Women Business Owners. She also regularly writes about business for various consumer publications. Ideally, the clients whose books you review most often should have a lower rate than those that you see on a one-time or annual basis.

Catchup Bookkeeping

Either way, one of the most critical parts of your website is the “Pricing” section. Many users will go straight to this section, so it’s important to make it clean and clear. Make the prices transparent and create frames for each package that outline what your users can expect when they sign up. Another thing to think about is that hourly work is not scalable. But if your focus is on local businesses, your prices should align with their expectations. You may also consider throwing in other costs, like a fee for an initial consult, to your pricing structure.

• Another thing to think about is that hourly work is not scalable.
• How much should you expect to pay now that you know the main factors that affect bookkeeping rates and the various pricing models used?
• The monthly fee depends on factors such as estimated hours, scope of services and experience level.
• Consider obtaining additional certifications like QuickBooks ProAdvisor or specializing in a niche area such as construction or ecommerce.
• There are a number of certifications you can get as a bookkeeper.

Data Entry

The best part of flat fee pricing is that it’s amenable to subscription billing. However, you must clarify how much each fee allows your clients to ward off the all-too-familiar scope creep. However, as bookkeeping and accounting software tech stacks have evolved, adopting the hourly pricing model might mean leaving money on the table. A small freelance bookkeeping business with no employees that you run from your kitchen will have lower fixed costs than a firm with a few employees and an office. Otherwise, you may wind up missing out on profits or scaring off clients with high rates.

Same as our monthly bookkeeping services, at a quarterly frequency. Perfect option for keeping up to date when your transaction volume doesn’t require monthly upkeep. For many smaller businesses, quarterly bookkeeping is all you need and a better option in the long run than only looking at your books once per year at year-end. The cost of hiring an internal bookkeeper also depends on the experience, qualifications, and bookkeeping price packages skills of the bookkeeper.

Accounting and Bookkeeping Costs Under Fixed Price Billing

If you want to have your books handled by a professional with regular, predictable costs, consider working with an online provider. Other factors that can impact the hourly rate include the freelance bookkeeper’s level of education, certifications obtained, such as QuickBooks ProAdvisor, and the software used. A specialty in additional services like payroll or financial analysis, the frequency of services offered, and even expertise in certain accounting applications can also affect the rate. Traditional firms often offer packages or tiered pricing structures depending on the size and complexity of the business.

Do online bookkeepers make more than freelance bookkeepers?

• However, these days, optical character recognition (OCR) tech scans receipts and uploads all the vital information in less than an hour.
• Highlight your qualifications, experience, and client success stories on your website and marketing materials.
• You may also consider using online bookkeeping services and accounting software to save time and money, all while meeting your bookkeeping needs.
• If you have the expertise, you could increase your billable rate by offering payroll in addition to bookkeeping services.
• But, don’t minimize your worth and expertise in the pricing process.
• Let’s take a look at each option so you can decide which one might be right for your operations.

This doesn’t include the benefits that can cost up to 20% of their salary. The best approach to bookkeeping is to translate the work of keeping your financial Certified Public Accountant records and books in order into dollars. If the cost is similar to that of an actual bookkeeper for performing the same tasks, then it may be better just to pay someone to do the job. While traditional firms may offer personalized service and expertise, their pricing can be higher compared to other options.

The 10 steps of value pricing

When implementing fixed-fee or value-based billing, it’s easy to under or overestimate the time it will take you to complete a task. Having an open dialogue with clients about this when you’re first signing them can be a good idea to pre-empt adjustments down the line. Bookkeepers, especially new businesses (the ones who don’t have to make the sometimes messy transition to another pricing model), should avoid hourly billing for that reason.