Ultimately, hiring a bookkeeper or financial management company will be different for every business and bookkeeper costs will vary. Deciding what kind of small business bookkeeping services you need, and what your business can afford is a great place to start. FinancePal offers a variety of financial services tailored to your industry and business operations. Work with a designated financial expert to help you streamline your accounting, and allow you to prioritize your time where you’re passionate, and most needed.

• If you have the expertise, you could increase your billable rate by offering payroll in addition to bookkeeping services.
• Just because it takes you 10 hours per week with your construction client doesn’t mean it will take that long with your restaurant client.
• A specialty in additional services like payroll or financial analysis, the frequency of services offered, and even an expertise in certain accounting applications can also affect the rate.
• Once you securely connect your financial accounts to the Bench platform, we’ll pair you with a dedicated bookkeeper.

How Do Bookkeepers Charge: Per Hour or a Flat Fee?

Many bookkeepers charge their clients for initial consultations because it gives them a chance to look at the books. This gives them an opportunity to let the client know just how much they will need to charge to take over their bookkeeping. If they have an office worker designated to some of those other tasks, not all of the 1-3% would be distributed directly to you. Consider the bookkeeper’s full worth rather than simply their hourly rate. This covers their productivity (how quickly they work), the precision of their labour, the insights they offer, and the comfort they provide.

How can Taxfyle help?

• Think of this bookkeeping service as a mix between traditional accounting and bookkeeping.
• Once you know this, you can modify your service packages to address their specific needs and challenges.
• This is also true if you start working with a new client in a new industry.
• However, Xero has a lot of self-help material on its website and a user community group.

To summarize, the cost of monthly bookkeeping packages is quite variable among providers. Rather than assuming a set price range, it’s important to evaluate each firm’s specific offerings. Make sure to clarify what’s included at each tier and determine what meets your business’ particular needs before making a decision. How much should you expect to pay now that you know the main factors that affect bookkeeping rates and the various pricing models used? While specific prices depend on your unique business circumstances, below are some overarching averages to use as general benchmarks when budgeting and evaluating options.

Get live expertise

If you want access to direct phone support, then we recommend FreshBooks or Zoho Books. To become certified, you need to pass a four-part examination, show two years of full-time bookkeeping experience or 3,000 hours of freelance or part-time experience, and sign a code of ethics. You can learn bookkeeping for free and at a low cost through online courses.

Bookkeeping services pricing structure

We’d be happy to understand the needs of your business and determine if Bench is a good fit for you. Every report accessible in the Bench platform can be exported to an Excel file for easy sharing with anyone from business partners to accountants. Once how much does bookkeeping cost you securely connect your financial accounts to the Bench platform, we’ll pair you with a dedicated bookkeeper. During your demo, we’ll walk you through the services included in each Bench bundle to determine which is the best fit for your business.

What Else Should You Know About Bookkeeping Rates?

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. Though you don’t need to be a certified CPA as a bookkeeper, there are still certifications you can gain to justify a higher fee for your services. Value-based pricing, instead, rewards experience and tech fluency. It’s the future in a changing accounting industry, where you can utilize tech to increase efficiency and output. Finding an accountant to manage your bookkeeping and file taxes is a big decision. When bookkeepers decide how much to charge for their work, they think about several things.

What Factors Influence the Hourly Rate for Bookkeeping Services?

• The American Institute of Professional Bookkeepers gives us a good idea of how much.
• This individual pays attention to details, is proactive in understanding financial statements, and is willing to expand their knowledge further.
• 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.
• Ask other bookkeepers about services, rates, and gather any other information about working in your area that will help you stay competitive.
• Understanding them will help you budget appropriately and set realistic expectations when pricing services.
• Both the CPB and CB certifications require similar eligibility requirements.
• You’ll be able to gauge how much time you think it will take to do their books each month.

QuickBooks dominates the market for small business accounting software in the US with a market share of 81%. The next two most popular accounting software are Sage 50 with 10% and Xero with 9%. Customer service is evaluated based on the number of communication channels available, such as phone, live chat, and email. Companies also receive points based on other resources available, such as self-help articles and user community.

Getting Your Hourly Rates Negotiated

The average hourly rate for a bookkeeper is approximately $21 based on Salary.com data as of February 2024. Geographic differences also impact rates, with some states having averages 28% above or below the national level. Such billing allows you to pay only for work done, but rates can add up quickly.

Basic Bookkeeping Costs

While this isn’t a new concept, the term value pricing has been more popular lately with bookkeeping and accounting professionals. When you’re just starting your bookkeeping practice, you may not know how long it will take you to complete regular tasks. This is also true if you start working with a new client in a new industry. Just because it takes you 10 hours per week with your construction client doesn’t mean it will take that long with your restaurant client.