The last factor to consider is the value of your services. You must also look at what makes you different or your competitive advantage because you may be able to charge more if you can show your prospective clients that you provide more value than your competitors. Look at your services and compare them to what other bookkeepers are charging. You can research the rates charged by other bookkeepers in your area. When it comes to pricing your services, you need to make sure that you are competitive. That same survey found that, on average, practitioners who obtained Quickbooks ProAdvisor certifications significantly increased their overall hourly rates. While most clients do not expect bookkeepers to have their bookkeeping certificate or CPA designation, they may value their bookkeepers having accounting software designations, such as Xero or Quickbooks ProAdvisor program. Intuit's 2021 rate survey found that average hourly rates did not differ between bookkeepers and certified bookkeepers, suggesting that a bookkeeping certification has no significant impact on pricing. There are several certifications you can get as a bookkeeper, but they are not necessarily required. The same is true if you have specialized training or certifications. If you have been working as a bookkeeper for many years, you will be able to charge more than someone just starting out. You will also need to factor in your experience and qualifications. Offering bookkeeping service packages at different tiers, such as gold, silver and bronze, is a great way to offer different pricing to clients of different sizes and needs. You will need to consider the number of employees, the number of bank accounts, the type of business, and the annual revenue when pricing your services. A small business client will have different bookkeeping needs than a large corporation. Size of clientĪnother factor to consider is the size of your client's business. If you can prove your worth and expertise in working with that specific industry and the nuances that come along with it, it will allow you to increase your prices. If you "niche-down" by offering bookkeeping to a specialized industry such as real estate or healthcare, that may affect your pricing. However, location plays less of a role now than it used to because everything is virtual, and you can serve small business clients worldwide. ![]() If you live in a small town or rural area, you will likely need to charge less for your bookkeeping services than someone in a major city, as living costs are typically lower in smaller towns and rural areas. LocationĪnother important factor to consider is your location. You may offer client meetings and financial statements more frequently, which is more time and effort for you. This is because businesses will benefit from having someone regularly tracking their finances and looking at their cash flow. Will you provide services once or on a monthly, quarterly, or annual basis? The more frequently you provide your services, the higher your rate can be. Frequency of servicesĪnother factor to consider is the frequency of your services. Your pricing will also depend if your client's books are current or if you need to do a lot of catch-up reporting because the more time passes, the harder it is for the business owner to remember what happened with their finances making your job harder. Each pricing package should clearly outline how many bank account reconciliations are included and an approximate number of bank and credit card transactions. Whether you offer bookkeeping price packages or custom pricing, it is important to determine how many bank accounts and credit card accounts need to be reconciled. The first is the scope of work involved.Īre you only responsible for recording transactions, reconciling accounts and preparing monthly financial reports? Or will you be responsible for tax preparation services and payroll services? How about offering additional services such as handling the accounts receivable or accounts payable for the business owner? The amount of work involved will significantly affect how much you can charge for your services. When it comes to charging for bookkeeping services, there are a few factors that you will need to consider. Factors to consider when determining your bookkeeping rate In this blog post, we will discuss factors you should consider when deciding how much to charge for your services, the most common pricing structures and share some tips on pricing and receiving payment from your clients. Pricing is an art rather than a science, and it's essential to look at many factors to determine the perfect price so you don't overcharge or undercharge. Deciding what to charge for your services is one of the primary challenges that bookkeeping professionals face.
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