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

They set up our books, finances, and other operations, and are constantly organized and on top of things. As a startup, you have to focus on your product and customers, and Kruze takes care of everything else (which is a massive sigh of relief). I highly highly highly recommend working with Vanessa and her team.

If a business lacks proper bookkeeping records to support its income (or other) tax returns, it runs the risk of having non-income items taxed as income, among other problems. One of the biggest advantages of outsourcing your bookkeeping is the cost. On average, a bookkeeping firm will charge anywhere between $300 to $2,000 per month depending on the amount and complexity of work required. 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.

Recurring tax compliance costs

Using outside firms to handle your bookkeeping is similar to hiring an in-house bookkeeper to handle basic bookkeeping responsibilities without the added overhead cost of carrying employees on your payroll. This is highly beneficial to companies entering a growth stage without having to provide additional office space or pay salary benefits. Jetpack Workflow has created a free set of 32 accounting https://www.bookstime.com/articles/what-is-accountancy and bookkeeping workflow templates to help you standardize your workflows and ensure nothing falls through the cracks. This price strategy seems similar to fixed fee since it’s a set price. With this price strategy; however, you price the client rather than your time and costs. As a result, you enjoy a higher profit margin for your bookkeeping services without working any additional hours.

The average price of outsourcing your bookkeeping needs ranges from $500 to $2,500 a month depending on the number of transactions and complexity of services required. A key benefit of Outsourcing is it gives you the ability to customize the services you receive to your bookkeeping needs. Balanced Books, LLP is dedicated to excellent customer service, and we offer high quality and accurate bookkeeping services at an affordable price.

Pricing Bookkeeping Services

Take a look at industry averages, rates by state, and more to get an idea of how much to charge your clients. So, don’t be afraid to boast about your experience while marketing your accounting firm. And, use it as a competitive advantage when it comes to pricing your offerings.

To illustrate what a small client looks like, I’ll be using a preschool I do bookkeeping for that generates about $150k in revenue a year. This preschool employs six teachers and hosts about 100 students. Next, give some thought to what kind of discount, if any, you’re willing to offer. At the same time, you don’t want to price yourself out of the market. There’s no reason for you to start from scratch on your bookkeeping pricing proposal template. Jetpack Workflow believes that applies to all of your recurring tasks.

Plans and Pricing

Even though I’m giving you the hours it takes me with each of these clients, I don’t necessarily keep track of them. I work a maximum of five hours per month for this client, which means sometimes I get my bookkeeping services pricing job done in less time. See what running a business is like with Bench on your books. Try us for free—we’ll do one month of historical bookkeeping and prepare a set of financial statements for you to keep.

Part-time bookkeepers and outsourced bookkeeping firms are a sound solution for new businesses, while full-time bookkeepers tend to benefit more established companies more. It’s up to the decision makers in the company to determine the best appropriate solution to maximize their profitability and ensure their growth. Firms offering outsourced bookkeeping services tend to also be flexible to make sure their solutions fit your specific needs. These firms specialize in bookkeeping and accounting, so their specialists will likely be more experienced and provide greater expertise than hiring an in-house bookkeeper.

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If basic bookkeeping is all that your company needs at this stage, you’ll need to decide whether to do the bookkeeping in-house or if you should outsource. If you decide to hire and manage a bookkeeper you’ll also have to decide whether the position is part-time or requires full time. If you decide to outsource, there are a few ways to go including local bookkeeping services, local CPA firms that offer bookkeeping services and specialized, national outsourced bookkeeping firms. Let’s look into three different options your company could consider to fill this need… The costs a small business or nonprofit incurs for bookkeeping will depend upon many variables. In addition to these basic bookkeeping activities, your costs will be impacted by how your accounting systems, policies and procedures, and reporting needs are set up and administered.

One of the most popular forms of automation for businesses is virtual bookkeeping services. A virtual bookkeeper is a digitized form of various levels of bookkeeping and accounting practices needed by businesses. Most small businesses start out with a basic bookkeeping service that is online, while enterprise-level corporations tend to use managerial accounting services. Because we only work with early-stage, funded companies, we’ve developed deep expertise and detailed, battle-tested processes specific to the needs of our clients. Secondly, our team is highly experienced – our account managers have an average of 11 year of experience, which means they don’t have to reinvent the wheel every time a client has a need. Someone in Kruze has probably seen it and done it, which saves us time and lowers our costs.