As the name suggests, price is consistent for specific services or deliverables, regardless of the client’s unique situation or needs. The difference in pricing often depends on factors like the number of services included, the complexity of the work, and the value provided to clients. Financial Cents can help you grow and scale your bookkeeping firm. With our automation features, you can free up valuable time to focus on building strong client relationships and delivering exceptional service. Our latest firm report shows that the average firm juggles 225 clients, generating $623,296 in revenue annually.
For another great article about using pricing bundles, check out this post over at FinePoints Bookkeeping. At the end of the year, during tax time, you need to send anyone who works for you as a contractor a special form called the 1099. Regular employees receive a W-2 in January showing their wages from the previous year. Contractors perform special services for companies and aren’t hired on as employees.
Bookkeeping services pricing structure
- Your role here is not just to balance the books, but to provide strategic advice that impacts their bottom line.
- You’ll need to set a menu of all of your additional services and then attach a price to each one.
- Even if you plan to charge a fixed rate eventually, it can be a good idea to bill by the hour for the first few months.
- Consider the pricing landscape of other bookkeepers in your area.
- Additionally, invoicing software can streamline the billing process, ensuring your clients have a clear understanding of your charges.
This specialized knowledge allows you to not only handle the standard bookkeeping tasks but also offer valuable insights and solutions tailored to their unique needs. Remember, pricing isn’t just about covering costs; it’s about recognizing the value of the service provided. So when setting the prices, consider all these factors and how they contribute to the overall value delivered to the clients. As a virtual bookkeeper, it’s crucial to be flexible and adapt to their specific requirements. Yes, the workload might be higher, but so is the monthly fee, and your clients will appreciate the breadth of services you can provide. The big benefit of fixed-pricing is that you just need to quote once and use those costs each time a small businesses client requests a service.
Pricing Accounting Services – 4 Steps to Follow
You know what they say—“You get what you pay for.” And, that saying holds true for bookkeeping services. You should be charging your clients accordingly for your services. But, you certainly don’t want to overprice your offerings. Otherwise, you could wind up losing clients to other firms (and no bookkeeper wants that).
Hourly rate pricing
When you’re just starting out, it might be tempting to determine how much you want to earn per hour and back into your pricing from that point. Instead, you need to ask yourself how much value you provide for your client. If you can do the job more efficiently or insightfully, you’re likely adding more value for your client than your hourly wage goal. Though they may seem relatively minor, 2-3% fees will quickly eat into your profits. When setting your prices, ensure you are charging enough to cover these fees.
It takes a bit more strategy & thought than the billable hour as well as some basic education in price theory. In basic bookkeeping and accounting, not all hours transfer price definition are created equal. You are not just providing basic bookkeeping services like maintaining the balance sheet or handling bill pay.
If you’re having trouble pricing accounting and bookkeeping services for your fixed-price mandates, you’re not the only one (and you’ve come to the right place). Location can play a major role in how much you charge for services. Price for bookkeeping services can vary from state to state. So, it’s important to know how much to charge clients based on location. To add insult to injury, I got paid $5.00/hour to clean the office over the weekend.