How Much Do Bookkeeping Services for Small Businesses Cost?

how to charge for bookkeeping services

A small business bookkeeper has several basic responsibilities. They are in charge of maintaining your financial books by keeping track of expenditures and revenue. This is performed by entering data into an accounting software like QuickBooks.

how to charge for bookkeeping services

Are you only responsible for recording transactions, reconciling accounts and preparing monthly financial reports? Or will you be responsible for tax preparation services and payroll services? How about offering additional services such as handling the accounts receivable or accounts payable for the business owner?

Bookkeeping for up to 50% less.

One of the easiest ways to secure an experienced, certified, professional bookkeeping service is to outsource to a complete bookkeeping service comapny. And after utilizing their services, you may just find that your company couldn’t afford to not outsource these functions. Many times, switching to an online bookkeeping service is a beneficial move for a company.

You may also need to negotiate prices with clients, which can be time-consuming. When it comes to charging for bookkeeping services, there are a few factors that you will need to consider. Don’t end up doing more work without getting paid for your services – especially if it’s long-term.

Which System of Accounting Is Suitable for a Small Business?

When deciding on a payment schedule, you should consider the scope of work and your client’s needs. You can use a combination of different pricing structures to come up with a rate that works for you and your client. For example, you could charge an hourly rate for some services and a flat rate for others. Just be sure to be transparent in your engagement letter so both you and your client are clear on the pricing structure and terms. With some basic bookkeeping solutions, you may find that you still have to supplement their services with a lot of founder oversight or in-house admin support.

  • Remember, clients are often willing to pay more for quality – so don’t sell yourself short when setting your prices.
  • Make sure to keep your clients happy and let them know you appreciate referrals.
  • For many firms, developing a package is the first step on how to start a bookkeeping business.
  • Offering bookkeeping service packages at different tiers, such as gold, silver and bronze, is a great way to offer different pricing to clients of different sizes and needs.
  • These firms specialize in bookkeeping and accounting, so their specialists will likely be more experienced and provide greater expertise than hiring an in-house bookkeeper.
  • We’d love to discuss our services in more detail and provide a quote for your business.
  • If you invoke the guarantee, QuickBooks will conduct an evaluation of the Live Bookkeeper’s work.

Outsourcing bookkeeping is a good option when you could use a hand hiring a bookkeeper for keeping track of a part of your financial management. Average monthly fees for this type of activity include from $500 to $2,500. One of the main benefits of such an approach is that you can customize the services you want the bookkeeper bookkeeping pricing packages to provide. Full-time bookkeepers keep track of all day-to-day operations, financial reporting, cash flow, tax filing, credit card accounts, customer invoices, monthly transactions, and much more. This billing allows you to price your accounting services based on the time it will take you to complete the work.

You’re spending a lot of time on bookkeeping

A part-time bookkeeper will usually cost more per hour than full-time bookkeepers, but the total monthly cost will be less. The actual hourly fee of part-time bookkeeping can vary according to location, duration, and daily responsibilities. Although outsourced bookkeepers tend to charge less than in-house bookkeepers, the actual amount can vary.

  • Edward says there’s also a benefit to having two financial professionals look through the accounts, rather than just one.
  • Once you consider your clients and listed your services, let’s start to bundle your services together.
  • It helps you and your client be transparent with the services your firm offers which will help boost your team-client relationship.
  • The third option is to price your services based on their value to your clients.
  • It might make sense for a large business with complex bookkeeping needs year-round to have an in-house bookkeeper.
  • For example, you could charge an hourly rate for some services and a flat rate for others.
  • You give it your time, expertise, and ideas, you market your products and services and hire qualified employees, you design benefits packages, maintain insurance, and have a dedicated space.

Lalea & Black is a full-service Los Angeles CPA firm specializing in outsourced accounting, bookkeeping, business management, and tax services. In addition to the above, a business owner may also be wary of trusting a part-time bookkeeper with some of the critical financials and records of their customers and/or clients. Such nuances can make the division of labor and trust a real strain on the employer and their company. Hiring a full-time bookkeeper at 40 hours per week at a rate of $14 dollar per hour (the low end of the average hourly cost cited above) will cost you $560 total for the week. Hiring a part-time bookkeeper at 20 hours per week at a rate of $17 dollars an hour (the high end of the average hourly cost cited above) will cost you $340 total for the week.

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