Assess these alternatives and define requirements upfront to match the best solution to your priorities. 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. Do you need bookkeeping services monthly, quarterly, annually? Ongoing monthly services have minimum hourly commitments that increase overall costs versus quarterly or annual services.
A big tip, if you’re going to any type of non-hourly billing, is to work out a price list for your services. This can be something you share or even display on your website, but it doesn’t have to be. The important part is to figure out what services you provide and how much you want to charge for them. As the business owner, you’d be willing to pay more for those insights too. 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.
On the other hand, there are times you can charge a much higher hourly rate. When you’re just starting your bookkeeping practice, you may not know how long it will take you to complete regular tasks. This is also true if you start delivery docket working with a new client in a new industry. Just because it takes you 10 hours per week with your construction client doesn’t mean it will take that long with your restaurant client.
They would know what services to expect from you, and you could charge an automatic, monthly fee. You must understand what bookkeeping services you need and whether it’s best to hire a professional bookkeeper full time, part time, or outsource the service. 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. The top three states with the highest freelance bookkeeping rates are Massachusetts, Washington, and Maryland, with average hourly rates of $43.57, $40.18, and $39.09, respectively. One way you can determine how much to charge is to tie each task to a dollar amount. When you’re first starting out, it’s hard to get a grasp on that, though, which is why I like to put it based on terms of approximate hours worked.
Try our payroll software in a free, no-obligation 30-day trial. Whatever structure and pricing you go with, make sure to lay it all out on the table for current and prospective clients. That way, there are no surprise fees, and clients know what to expect from you. Partnering with Patriot earned this accountant a 50% cost savings from his previous provider, decreased his time running payroll, and more! If a client takes advantage how to establish decision of multiple services, charge accordingly. 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).
And with time being the ultimate resource, it’s important to charge clients proportionally to the amount of time you’re dedicating to their services. Though you don’t need to be capital lease vs operating lease a certified CPA as a bookkeeper, there are still certifications you can gain to justify a higher fee for your services. When you’re calculating your rates, especially in a new location, doing local research is crucial. Ask other bookkeepers about services, rates, and gather any other information about working in your area that will help you stay competitive. A full charge bookkeeper takes care of the usual bookkeeping service but also handles some accounting duties.
Overall, there’s no clear answer since income will vary based on individual circumstances. Have an open conversation with prospective bookkeepers to disclose any potential hidden fees or limitations upfront so there are no surprises. Understand if there are caps on service hours or transactions included in monthly fees. Ask if tasks such as financial analysis or tax preparation incur additional charges. First, clearly outline your specific bookkeeping needs so you don’t overpay for unnecessary services.
In a nutshell, a bookkeeper records your financial transactions and collects information to create general financial reports. Business owners can then use those financial reports to make better-informed financial decisions to boost the growth and profitability of a company. Danielle Bauter is a writer for the Accounting division of Fit Small Business.
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