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

average cost for bookkeeping services

It’s important to note, however, that this price does not include the price of a QuickBooks Online subscription. Therefore, you’ll also have to consider the cost of your QuickBooks plan, in addition to the cost of QuickBooks Live Bookkeeping. We offer an unprecedented level of quality for a fixed monthly fee, allowing companies to focus on growing their revenue while we handle all the daily, monthly, and annual financial work. Lalea & Black is a full-service Los Angeles CPA firm specializing in outsourced accounting, bookkeeping, business management, and tax services. One of the biggest advantages of outsourcing your bookkeeping is the cost.

Tax Preparation

QuickBooks Live is attached to QuickBooks Online, and easily available to users who already have this accounting software. If you don’t have QuickBooks Online already, you can sign up for QuickBooks Live directly when purchasing your QuickBooks subscription. Moreover, Bookkeeper360 offers add-on solutions for CFO advisory, payroll, taxes, HR, and back-office.

  • If you’re interested in being a freelance virtual bookkeeper, you can sign up for freelance marketplace websites to connect with potential clients.
  • Enjoy the personal assistance that comes with a Block Advisors dedicated accountant.
  • First, clearly outline your specific bookkeeping needs so you don’t overpay for unnecessary services.
  • The BLS expects the field to have a 5 percent decline in growth from 2021 to 2031.
  • He is an expert in resource and process optimization resulting in greater operational efficiencies.
  • Additionally, they’ll provide you with a monthly report and be available via phone or video chat to answer questions or walk you through your report.
  • For one-person businesses, a dedicated traditional bookkeeper might be overkill — not to mention unaffordable.

Streamline your accounting and save time

  • Join over 25,000 US-based business owners who have streamlined their finances and have grown their businesses with Bench.
  • The thing that takes the most time with this client is the invoicing.
  • This doesn’t include the benefits that can cost up to 20% of their salary.
  • You can also use them to get a sense of the quality of the service (e.g., are they using qualified bookkeepers and accountants, do they make errors, do they perform the services you paid for).
  • In this article, we’ll explain the certification levels, as well as the key benefits of honing your TaxDome skills and getting certified.

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. 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. When you’re calculating your rates, especially in a new location, doing local research is crucial. Ask other bookkeepers about services, rates, and gather any other information about working in your area that will help you stay competitive. If you fail to keep accurate monthly records throughout the year, a CPA won’t always provide them retroactively. And as we mentioned, without these records, you won’t know where your finances stand.

Enter financial transactions.

Before looking to hire a full-time employee to maintain your books, you should first figure out what kind of responsibilities you need to have handled. A full-time accountant is an upgrade over a basic bookkeeper, as they require less oversight and provide greater expertise across the board. A strong alternative to hourly billing is fixed-rate (or flat-fee). It means you set a fee for each service you offer and provide clients with a ‘menu’ of sorts, with corresponding prices. After digging through the pricing tiers of a number of different bookkeeping service providers, we’ve found that the average range for small to medium businesses is $250 – $1,500 per month. Not all bookkeepers offer tax preparation and/or filing services, so 1-800Accountant stands out with its additional tax services.

average cost for bookkeeping services

Overall stats of a small client

The experts will host your books on the software and manage it from there. However, the cost varies, and it usually depends on the services which you want the expert to perform. Outsourced bookkeepers have no overhead expenses and charge only for work performed. 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.

Market Your Business

average cost for bookkeeping services

Not every self-employed worker or small business owner needs a bookkeeper. Maybe you’re new to the 1099 world, or have simple finances you don’t mind managing on your own. Or perhaps you’re tight on cash and can’t afford to hire a professional right now. For example, let’s say you spend about five hours a month on bookkeeping, and your average hourly rate is $75. Accurate monthly and annual reports of financial data allow you to effectively run your company, enable you to better analyze operations, and help inform all business decisions. Like many other services, it’s often cheaper to outsource bookkeeping to a professional rather than hire an employee to do the job in-house.

Get Top Notch Industry-Specific Experience

  • Such nuances can make the division of labor and trust a real strain on the employer and their company.
  • 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.
  • Customers schedule an appointment to have a bookkeeper review their transactions, and  multiple schedules are available to choose from.
  • 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.
  • I often just use the bill pay directly through the bank with this client, as it’s relatively easy to do, and many banks will do that service for free.

Many businesses are concerned about switching over to outsourcing, not understanding how the pieces fit together with this model. But with today’s advancements in technology, outsourcing has never been easier. Outsourcing can provide advanced and less costly bookkeeping service than a typical in-house bookkeeper. Usually, large businesses have in-house bookkeepers on their staff. The benefit of permanent bookkeepers is they will be available around the clock and will be only dedicated to your business.

If you only have a few employees and don’t do a lot of transactions or have hundreds of invoices to go through, you should be able to get by with part-time help. Check out the table below to know the average cost of bookkeeping services in various states. However, the price can vary greatly depending on a variety of things, including bookkeeping price packages schooling, certifications, and experience. Rather than hourly billing, some professionals offer flat monthly fees for defined packages of services. The monthly fee depends on factors such as estimated hours, scope of services and experience level. Packages can help budget predictably but may cap hours if more work is required.

average cost for bookkeeping services

Full Time Bookkeeping Cost

  • On top of that, you need the data used in bookkeeping to file your taxes accurately.
  • The benefit of permanent bookkeepers is they will be available around the clock and will be only dedicated to your business.
  • And because the task can feel overwhelming, your books may end up falling behind.
  • In addition, you’ll need to add around 20% on top of salary for benefits and overhead including office space.
  • 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.

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