By bundling services together, you separate your fees from time. This, of course, allows you to charge more without working any additional hours. If they have an office worker designated to some of those other tasks, not all of the 1-3% would be distributed directly to you. H&R Block has something for everyone, whether you’re filing online yourself, looking for expert advice, or want to hand it off to a professional. While it doesn’t offer the lowest prices you’ll find for tax software, the quality of the overall user experience can justify the higher cost.
- Once again, it’s a mindset shift where you price the client instead of the service.
- This is when you’ll need more advanced bookkeeping, accrual-based accounting, and management or managerial accounting to help you make data-driven decisions.
- Even if you switch to fixed fees or a value pricing structure for your main bookkeeping services, you may have additional services that command a premium.
- For example, you might process a certain number of transactions for one cost, but going over that incurs a different fee.
- If you’ve been working in the industry for 10 years, for example, you’ll have the client base, referrals, references, and body of work to quote a higher rate.
Discover the 4-step process used by hundreds of firm owners to double your prices (as soon as today) without increasing workload. Templates, workflows and automations all give you time back in your day that you can spend building your client base and adding value for existing clients. The best way to know if a pricing structure will work for you is by testing it. Noticing trends for the different pricing systems that you test is key to establishing the right balance.
Accounting software
Additional assistance with state and local tax compliance is also available. George Dimov possesses a Bachelor’s Degree in Business and a Master’s Degree in Accountancy from City University New York. Outsourcing your bookkeeping to online services has its perks. For one, it can be more cost-effective, especially if your bookkeeping needs are straightforward or vary throughout the year. Online services offer flexibility and access to a team of bookkeepers familiar with various accounting software, which can improve efficiency. However, the cost can vary based on the kinds of services you need.
- Self-employed bookkeepers can charge clients $35 or more per hour.
- This structure helps them decide how much to charge for the bookkeeping jobs they do.
- It means you set a fee for each service you offer and provide clients with a ‘menu’ of sorts, with corresponding prices.
- On average, bookkeepers might want to charge around $25 per hour.
- They focus on recording the financial transactions of a business through maintaining records, tracking transactions, and creating financial reports.
- As you can imagine, her business was running her instead of her running her business.
- But look for bookkeepers in your region, or serving your industry, or providing the same services as you.
However, you’ll need to be clear about the scale of the project and be realistic about how much time you’ll need to spend on it when you’re considering how much to charge. Stephen P. Pryor, CPA, based in Port Chester, proudly employs financial experts who provide high-quality services. The company specializes in professional taxes, payroll and tax consulting, bookkeeping services, and much more. The local experts serve the real estate, construction, and hospitality industries.
How to Determine Your Pricing Strategy
However, there are slightly more sophisticated ways to package your bookkeeping services that encourage repeat clients, and maximize profits. It allows you to adjust your fees without painting yourself into a corner, which can happen if you provide quotes to clients when you don’t know the details bookkeeping pricing packages of their business. 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. For example, the National Association of Certified Public Bookkeepers (NACPB) offers a QuickBooks Online certification.
A client with a higher income is going to be able to afford a higher price tag for a bookkeeper, and your workload will be quite a bit higher than a small or medium client. This is the benefit to charging based on a percentage of your client’s revenue. A few months down the road, once you’ve immersed yourself into their business, have their books organized, and have a steady flow, you can switch your client to a fixed monthly rate. By then you will have figured out just how long it will take on a monthly basis to keep their books current. It’s reasonable for a new bookkeeper to charge around $40 an hour, but you’ll need to do some research in your area to make sure that is a good starting point.
You are specialized and efficient saving time
Look at the types of services you offer and compare what you currently charge to others. If a client takes advantage 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). Many clients may be willing to pay a little more in exchange for trustworthy knowledge and training.