Spend some time researching these kinds of questions to properly establish your client’s needs in order to outline the additional services that are required. Now, this method does come with some disadvantages (which we won’t go into here), many of which are causing many firms to re-think their pricing strategy. a beginner’s guide to retained earnings I’m an entrepreneurial CPA that founded Xen Accounting, a100% cloud-based accounting firm, in 2013. Following its acquisition in 2018,I started Future Firm to help accountants fast-track the growth of a modern, scalable accounting firm of their own.
The geographical location of your bookkeeper plays a massive role in how expensive the service will be. You also get the benefit of a higher expertise level compared to training your office manager for bookkeeping.
Otherwise, you may wind up missing out on profits or scaring off clients with high rates. Again, the best course of action for you to take when setting prices is doing your research. Take a look at industry averages, rates by state, and more to get an idea of how much to charge your clients.
Type of Services Provided
- Take a look at industry averages, rates by state, and more to get an idea of how much to charge your clients.
- A strong alternative to hourly billing is fixed-rate (or flat-fee).
- Check out this article on the best invoicing software to explore some great options.
If you’re not there already, it’s worth upskilling to get to that point, as you’ll be able to justify higher pricing packages. The number of tasks you assign to them directly impacts the price of each bookkeeping service. Ideally, prioritize the experience factor when hiring a bookkeeper.
Thoughts on hourly pricing.
To illustrate what a medium client looks like, I’ll be using a law firm I do bookkeeping for that generates about $800k in revenue a year. This firm has seven employees, which includes their attorneys and their general staff. Bundling services together in set packages is how to turn on and set up time tracking a good way to implement fixed-fee pricing.
2 Ways to Grow Your Bookkeeping Business
My goal is to help you understand what these breakdowns look like for each client. The time-based pricing approach is often the default approach to pricing for many accounting firms. This long-standing traditional way of billing clients requires firms to track every hour spent calculating present and future value of annuities on a project. Then you present a list of services performed along with the hourly rate for your client. A basic strategy for pricing your accounting services is cost-plus pricing.
For medium to large-size business owners, full-charge bookkeepers can also manage payroll. Want to see what other accounting firms charge for tax preparation services? The success of your accounting firm depends so much on implementing a pricing strategy that boosts profitability while sustaining longevity without damaging your brand.
You’re also learning their business and don’t know exactly what tasks you will be doing. There can be multiple variants that play in the pricing factor. Mastering how to price bookkeeping services requires a balance of understanding your value, assessing your client’s needs, and maintaining open communication. Remember, the goal isn’t just to bill clients, but to build long-lasting relationships based on trust and value. As a modern, online bookkeeping professional, your strategic pricing model could be the deciding factor that distinguishes your services from the rest. Remember, whether you choose traditional or value-based pricing, the goal is always to provide top-notch services that your clients appreciate.