It guides you through the essential factors to consider, ensuring you don’t overlook important elements like service packages, client size variations, and overhead costs. This approach helps you create a well-rounded pricing structure that reflects your true value. So how do you ensure bookkeeping price list you’re setting the right rates, i.e., one that is clear and fair for all? It guides you in creating a pricing structure that works well for you and your clients. Another option is to offer an hourly rate for the first job with a new client.
Benefits of Using a Bookkeeping Pricing Template
Having a well-defined service list helps you determine the time and resources needed to deliver each service effectively, directly impacting your pricing structure. Feel free to customize it to reflect your specific service offerings, expertise, and target clientele. 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. I tried using bill.com with this particular client, but I actually didn’t really find it as helpful as I would have hoped.
Fractional Controllership Services
It means you set a fee for each service you offer and provide clients with a ‘menu’ of sorts, with corresponding prices. Your bookkeeping team reconciles your accounts, categorizes your transactions, and produces your financial statements. They also make adjustments to your books to ensure they’re accurate and tax-compliant. Occasionally we might need your input on things like categorizing a transaction properly, but we try our best to make bookkeeping as hands-off as possible for you.
Bookkeeping & Tax
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. In any industry, experience is influential in pricing decisions, and bookkeeping is no different. It means quality of service, efficiency, calmness, problem-solving, and confidence. When you’re calculating your rates, especially in a new location, doing local research is crucial.
Practice barrier #6: value pricing & bundling
Once you feel comfortable with their business and how they work, then use those hours to calculate a fair value-based fee to charge in the future. Clients have different needs and so often need customized pricing. Now, creating a new pricing structure for each client who needs it would take a lot of time, effort, and resources.
Overall stats of a large client
- It’s unusual for the bookkeeper to be able to write and sign checks, but because it is such a small business, we have our duties divided a little bit differently than it may normally look.
- Unlike other bookkeeping solutions, we don’t remove your login access after your subscription has ended.
- Feel free to customize it to reflect your specific service offerings, expertise, and target clientele.
- This will show them which of the six classes is most profitable.
- I work a maximum of 10 hours per month on this particular client’s books, and charge $500 a month, which still comes out to be roughly $50 an hour.
- This means that regardless of a service’s value to your clients, you’re capping your pricing based on how long it takes to deliver that service.
- Know that there’s a plan in place to ensure that your filings are up to date and never fall behind.
Our bookkeeping and accounting firm works as an Retail Accounting extension of your team, learning your business, processes, and are with you every step of the way. A cloud-based solution that makes it easy for accounting firms to manage client work, collaborate with staff, and hit their deadlines. With a template, you can ensure all your quotes and proposals follow the same structure and format, regardless of the client or the team member in charge of servicing the client. This demonstrates professionalism on your part and helps build trust with the client.
ways to price your bookkeeping services
I’m in charge of sending invoices out to their patients, so I look in the system how much we are supposed to be charging them. For example, the appointment may have cost $300, the insurance covered $200 of the charge, which leaves $100 as the cash flow patient’s responsibility. Discover the direct correlation between standardized processes and boosted profits for your accounting firm.
- A common way to do this is by building a tiered system for different levels of service.
- Learn how to build, read, and use financial statements for your business so you can make more informed decisions.
- By definition, fixed-fee pricing is inflexible, and in a complex industry, inflexibility can cost you money.
- Businesses typically expect certain services to be part of bookkeeping, but providing additional offerings that add value to your clients’ businesses can justify charging a higher fee.
- A strong alternative to hourly billing is fixed-rate (or flat-fee).
Bookkeeping costs: Pricing considerations for bookkeeping services
If you are doing anything with payroll, this will vary widely between each client. The template is divided into seven sections, and includes critical details for each step. For certain jobs, it’s wise to make this fixed-fee model scalable.
Accounting Workflow Academy
Having an open dialogue with clients about this when you’re first signing them can be a good idea to pre-empt adjustments down the line. To illustrate what a large client looks like, I’ll be using a physical therapist office I do bookkeeping for that generates about $1.2 million in revenue a year. This office employs 10 speech pathologists and general staff and circulates child clients who come in for their services. This task probably takes me a couple hours per month to complete.
