The local experts serve the real estate, construction, and hospitality industries. That’s why you need to do your research to make sure you’re getting the best deal. Thanks to their expertise, they are capable of providing business advice about investments you are planning to make.

Value-based pricing means pricing your services upfront based on the perceived value they have to your clients. Bookkeepers, especially new businesses (the ones who don’t have to make the bookkeeping services pricing sometimes messy transition to another pricing model), should avoid hourly billing for that reason. Don’t be fearful of having conversations about raising rates with long-term clients.

Do you need add-on services outside of basic bookkeeping tasks?

If the cost is similar to that of an actual bookkeeper for performing the same tasks, then it may be better just to pay someone to do the job. Bringing someone on as an in-house full-time employee requires extra costs on your end, such as benefits and health care, whereas contractors are not entitled to these perks. You may not know how long you’ll need someone, but comparing the monthly bookkeeping cost of a contractor versus an in-house employee is the best way to see this angle side by side. 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.

Depending on the type of accountant, years of experience, and certifications, you could be paying a pretty penny. Along with considering the above factors when setting your pricing for bookkeeping services, you’ll also want to set up a pricing structure that works for you and your firm. Location can play a major role in how much you charge for services. So, it’s important to know how much to charge clients based on location. Another option is to offer an hourly rate for the first job with a new client.

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For example, many people think profitability starts and ends with their hourly rate, but that’s operating under the (usually false) assumption that hourly is the best way to charge for your services. Generally, small to medium-sized businesses expect to pay between $500-$2,500 USD monthly for their outsourced bookkeeping—an dauntingly large range to deal with. Millions of people ask Thumbtack for help with their projects every year. We track the estimates they get from local professionals, conduct our own research and then we share those prices with you. The prices reflected in the article above are for informational purposes only and are subject to change at any time. Contact a professional near you to receive a personalized cost estimate for your project.

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.

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Be upfront about what’s included in your services and what would incur additional charges. This step is crucial because it sets realistic expectations and helps prospective clients understand the scope of your services. With value-based pricing, you’re not just an hourly worker crunching numbers; you’re a valuable partner providing crucial accounting services that help your clients understand their financial health better.

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• The more you establish value in Step 1, the easier your job will be in demanding a higher price per month.
• 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.
• For full time services, expect to pay from $3,000 to $4,500 per month without the benefits.
• Regular employees receive a W-2 in January showing their wages from the previous year.

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. A full charge bookkeeper has a larger responsibility and full oversight over a company’s finances. 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. We care about your cash flow, hence we don’t put any hidden fees that will surprise you.