What is essential here is to get an accurate figure of your costs. Do your due diligence to make sure you’re billing your clients fairly. But, don’t minimize your worth and expertise in the pricing process. Consider how frequently you provide services to a client when making up your mind about what to charge. Some clients will be a one-time deal, while others may need you on a regular basis (e.g., quarterly). Look at the types of services you offer and compare what you currently charge to others.

Basic Bookkeeping Costs

And trust me, nothing makes a client happier than knowing they can count on you for this. Finally, Copilot allows activity ratios-debtors turnover ratio debtors velocity ratio you to create proposals, forms, and contracts thanks to various highly customizable templates. You can use them to automate onboarding, sign client agreements, and generate accounts receivables invoices if it’s a service your clients need.

This can be something you share or even display on your website, but it doesn’t have to be. The important part is to figure out what services you provide and how much you want to charge for them. To add insult to injury, I got paid $5.00/hour to clean the office over the weekend. If you’re located in a major city, you may be able to charge more than someone in a smaller town. Clients in major cities may be willing to pay more for bookkeeping services than clients in smaller towns.

From there, you can raise your rates as you gain more experience, and many top out around $80 or more an hour. Self-employed bookkeepers can charge clients $35 or more per hour. However, the rates can vary drastically depending on the state. FreshBooks is an invoicing and accounting software for small businesses. Business owners who wish to automate their financial tasks can use some of the latest tools on the market. For example, the process is similar to hiring an in-house bookkeeper but you don’t have to add overhead costs for employees on the payroll.

1. You can read more about how to implement the 3-tiered pricing system here.
2. One of the main benefits of such an approach is that you can customize the services you want the bookkeeper to provide.
3. However, specific, targeted landing pages can lead to even greater conversions.
4. Bundling services together in set packages is a good way to implement fixed-fee pricing.

As a result, they come with a higher monthly cost for business owners. You want to hire a bookkeeper with the requisite qualifications. Freelance bookkeepers often come from different backgrounds, but this doesn’t mean they necessarily offer lower prices for their services. That’s why it’s important to consider a person who has at least a bachelor’s degree. Copilot’s client portal software was designed to elevate client experiences and ensure you can easily manage 10 killer nonprofit mission statements to check out your customers and projects.

The client may require additional services from you in order to set them up on a new system or clean up the mess left by the previous bookkeeper. I find cleanup projects always take longer than the client expects. Obviously, if you’re an employee working as an in-house bookkeeper, you can’t offer value pricing. While you’re waiting for your chance to branch out and start your own small business, you can use this time to practice your negotiation skills. Making a strong case about why you deserve a raise will get you used to the process when it’s time to raise your rates with your clients. A strong alternative to hourly billing is fixed-rate (or flat-fee).

Client doesn’t have to provide benefits

In the past, bookkeepers manually entered expense receipts, which, let’s say, took 4 hours per month. However, these days, optical character recognition (OCR) tech scans receipts and setting the time period for a report uploads all the vital information in less than an hour. Your client’s result is the same, but you’re down three monthly work hours.

Value-Based Pricing

This will vary depending on the size and complexity of the project, but it’s important to have a general idea of how long it will take you to do the work. Different industries also require different services, which can affect the overall cost. You also get the benefit of a higher expertise level compared to training your office manager for bookkeeping. Effective client communication is an art that’s mastered over time. Fortunately, there are resources available that can help you refine your approach.

Add footnotes to the bundles to mention limits and overage rates. Basically, a handful of common tasks that you might encounter on a regular basis. It’s the “good, better, best”, or “bronze, silver, gold” approach.