How to Price Bookkeeping Services for Small, Medium, and Large Clients

In a nutshell, a bookkeeper records your financial transactions and collects information to create general financial reports. Business owners can then use those financial reports to make better-informed financial decisions to boost the growth and profitability of a company. After you sign up to Bench, a member of our bookkeeping team will assist you in connecting all your financial accounts securely to our platform. This enables you and your Bench team to work together seamlessly from the start.

Should I hire a bookkeeper or do it myself?

1. You can go with the baseline plan, the Simple Start plan, for $30 per month.
2. The amount of work and nature of your business may also impact the rates.
3. 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.
4. While Bench doesn’t offer accrual accounting services, we specialize in a modified version of cash basis bookkeeping.
5. For example, the appointment may have cost $300, the insurance covered $200 of the charge, which leaves $100 as the patient’s responsibility.

For outsourced bookkeeping, the price is from $500 to $2,500 per month for basic bookkeeping tasks. Now that you know the answer to the question “How much does a bookkeeper cost? You may also consider using online bookkeeping services and accounting software to save time and money, all while meeting your bookkeeping needs. If you’re having trouble determining how much to charge a client, it’s perfectly fine to start out working with them at an hourly rate and moving to a fixed rate later on.

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. 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. Bookkeepers have a wide variety of skills, so one of the factors you need to consider is what you need them for. If it’s basic client billing and documentation, a good solution may be accounting software that can assist you if you still want to play a more hands-on role. Whether you opt for basic bookkeeping or full-service bookkeeping and accounting, either option can help you be better prepared come tax season.

What Do Bookkeepers Do?

At its core, bookkeeping is about recording financial data, while accounting is about interpreting financial data. Sign up today and we’ll do one prior month of your bookkeeping and prepare a set of financial statements for free, valued at $299. Working a maximum of five hours per month on this particular client’s books, and charging $250 a month, I’m making right around $50 an hour, which is in the ballpark of where I want to be. Figuring out the right price or the right way to package your services isn’t easy.

For medium to large-size business owners, full-charge bookkeepers can also manage payroll. If not done at the time of the transaction, the bookkeeper will create and send invoices for funds that need to be collected by the company. The bookkeeper enters relevant data such as date, price, quantity and sales tax (if applicable). When this is done in the accounting software, the invoice is created, and a journal entry is made, debiting the cash or accounts receivable account while crediting operating profit vs net income the sales account. In an ideal world, all your clients would be ongoing at a fixed or value-based billing structure.

Bookkeeping & Tax

Once everything you need to know about the income statement the entries are assigned to the correct accounts, you can post them to the general ledger to get a bird’s-eye view of your current cash status. Most accounting software does this for you, so you don’t need to worry about an extra step. Look at the item in question and determine what account it belongs to.

There are two main types of bookkeeping to be aware of when deciding what type of bookkeeper to hire. These include basic and full-service bookkeeping, where the decision largely depends on your business goals and needs. When you do it yourself, you may miss things or make costly errors. Plus, bookkeepers will ensure you’re in compliance with local and federal laws (which can ultimately save you money in the long run). While it may be an immediate cost saver compared to paying someone else to do the job, it may not be the right choice for your business.

Studies show that if given three options, consumers are 66% more likely to choose the middle tier. In any activity driver industry, experience is influential in pricing decisions, and bookkeeping is no different. It means quality of service, efficiency, calmness, problem-solving, and confidence. Still, from state-to-state in the US, there are significant differences.