How Much Should I Charge for Bookkeeping Services? Averages

They keep track of ledgers, accounts payable and receivable, payroll, and invoices. The benefit of project pricing is that it allows for close tracking of costs and revenue at each milestone. Compared to standard bookkeeping, project pricing gives more focused, day-to-day financial insights. This can be beneficial for budgeting, as you know upfront what you will be paying each month, but it requires a clear understanding of the services included to avoid scope creep.

The more experience you have doing actual bookkeeping work, the more confident you’ll be in your skills, which will translate into higher billable rates.
This ties into client size and is a good way to stay transparent while correctly charging larger clients.
Just 5 minutes of your time over the phone, can get you started with the best Bookkeeping service in USA while saving you hundreds of dollars.
For her fixed-rate pricing, I believe she does the 1-3% for any clients that are $300k or below.
Provide details including your average monthly transaction volume, frequency of reporting needed, accounting software used, inventory tracking requirements and any industry specific needs.
Still, the biggest benefit of hiring a professional is that you’ll save yourself a lot of time.

Experience

Larger businesses would need a full time bookkeeper which costs between $55,000 to $85,000 a year. Like so many jobs, experience influences hourly rates for bookkeepers. New bookkeepers will enter at a lower rate than those with years of experience under their belt. According to Indeed.com, entry-level bookkeepers make an average of $18.34 per hour.

Per transaction pricing

It aids companies in comprehending the costs and benefits of Bookstime their purchases. Even though not all bookkeepers will provide a thorough invoice that breaks down these items, it’s a good idea to inquire for clarification. Knowing the breakdown can help with negotiating, budgeting, and defining clear service expectations. You can calculate the time spent on bookkeeping tasks and translate that into dollars.

Benefits of outsourcing

It’s human nature to go toward the least expensive choice when we’re trying to cut costs.
Providers with this certificate only are essentially the most affordable service providers in the industry today.
Think of this bookkeeping service as a mix between traditional accounting and bookkeeping.
You won’t have to pay additional benefits or overhead costs when you hire a bookkeeper from one of these services.
The more experienced the bookkeeper, the more confident they are with their skills.
We analyzed our top 20 TaxDome firms, representing over $100M in combined revenue, to uncover the strategies driving their success.

As businesses recognized the importance of local regulatory compliance and the nuances of regional business ecosystems, there was a renewed emphasis on local bookkeepers. The aftershocks of the 2008 global financial crisis lingered into the early 2010s, leading to businesses tightening their belts and seeking cost-effective bookkeeping solutions. Modern bookkeeping software now boasts retained earnings features that automate repetitive tasks like data entry, invoice generation, and even reconciliations.

How much should I charge for bookkeeping services? 6 Factors to consider

Consider blending hourly rates with fixed fees for certain tasks, or offering/package deals that encompass a range of services.
All of this provides the business owner with up-to-date visibility into the company’s fiscal health.
It’s imperative for businesses to understand these nuances to make informed decisions and optimize their bookkeeping investments.
The AIPB certification program is ideal for someone who doesn’t have any formal education in bookkeeping.
A few months down the road, once you’ve immersed yourself into their business, have their books organized, and have a steady flow, you can switch your client to a fixed monthly rate.
When you work for a company, and they give you a W-2, they are paying a bunch of money to have you working for them.
Upon completion of all certification requirements, a provider earns designation as a Certified Bookkeeper (CB).

Income for online bookkeepers and freelance bookkeepers may vary depending on several factors, such as experience, skills, location, client base, and the types of services that they offer. Overall, there’s no clear answer since income will vary based on individual circumstances. During periods of economic growth, businesses tend to expand and require more sophisticated bookkeeping services. This can lead to increased demand and potentially higher fees as bookkeepers become busier.

Develop a Pricing Strategy

These increased costs are often passed on to clients in the form of higher fees.
Many times you’ll be discovering things about the business as you get to know your client, and you may even find some issues your client didn’t know were there.
Bookkeepers, especially new businesses (the ones who don’t have to make the sometimes messy transition to another pricing model), should avoid hourly billing for that reason.
Some bookkeepers offer project-based pricing for one-off jobs rather than an hourly rate.
Hopefully, you now have a better idea of what bookkeeping services you can afford and which services come with a lower or higher bookkeeper cost.
Understanding the cost of bookkeeping before outsourcing is important for business owners.

What is taking the most time is being aware of their finances, organizing things, and pulling reports. However, it is true that the bigger the account is and the more transactions they have means the more time it’s going to take you. For example, in the United States, a bookkeeper’s hourly wage in New York City can be much higher than in a small Idaho town. The best way to do bookkeeping for small businesses is to come up with a framework, choose the method that works best for your business type, and keep track of all the details. The geographical location of your bookkeeper plays a massive role in how expensive the service will be.

In addition to getting certified through the AIPB or NACPB, I recommend that you get certified in QuickBooks. The QuickBooks ProAdvisor certification program is ideal for freelance bookkeepers because it allows you to get certified for free with no strings attached. It’s also arguably the most valuable bookkeeper certification, as the vast majority of small businesses in the US use QuickBooks. Negotiating rates can be a daunting endeavor for both bookkeepers and clients. Striking a balance between fair compensation and value for money requires tact, research, and a clear understanding of one’s needs and value propositions. bookkeeping price packages This guide aims to simplify the negotiation process, ensuring both parties feel satisfied with the outcome.

Monthly packages

While the information above provides a general overview of bookkeeping hourly rates, you can find detailed bookkeeping pricing information about our services on our Pricing Page. As great as it is to talk about potential bookkeeping costs and get estimates, we know that seeing an actual average for your state can yield excellent value for you as a business owner. Please see the chart below with data pulled directly from the US Bureau of Labor Statistics 2024 data to learn more about the average salary and hourly rate for bookkeeping. Bookkeeper salaries vary state by state (see our chart below), and depending on where you live, you could be paying a large difference in one place versus another. Bookkeepers offer a wide range of services, so what you need from them will affect your overall costs. If you only need basic services like 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.