I don’t think this is as viable for someone doing a regular set of recurring services each month. However, if you provide less recurring services such as consulting, analysis, and accounting software support, this could be an option for you. All bookkeepers provide a certain set of tasks, so it’s hard to charge a premium for something other bookkeepers are also offering.
Step 1: Hold a discovery call
Now, this method does come with some disadvantages (which we won’t go into here), many of which are causing many firms to re-think their pricing strategy. 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.
You can take into account the actuarial gain or loss definition client, the job type, your experience, along with many other factors to give a fair quote. By definition, fixed-fee pricing is inflexible, and in a complex industry, inflexibility can cost you money. In any industry, experience is influential in pricing decisions, and bookkeeping is no different. It means quality of service, efficiency, calmness, problem-solving, and confidence. With tech taking up so much airspace in modern accounting, those who are fluent users are quickly outpacing those who aren’t.
How to Price Bookkeeping Services for Clients of All Sizes
Xero and other accounting software have their own qualifications which, once earned, show you’re an expert in their product. 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. To set the correct pricing, you need to start by assessing the various factors that affect your rate. Some are more impactful than others, but they should all be considered. Value-based pricing, instead, rewards experience and tech fluency.
Discovery calls are calls are set up with potential clients to determine if there’s a mutual fit. To help you determine how much you should charge based on the value you can provide to a client, follow these 4 steps. However, my main issue with this method is that it creates a misalignment between the client’s desire for efficient, effective work and the firm’s incentive to log more billable hours. There are four methods bookkeepers use to charge for their services. Charging too little can hurt your profits, limit your ability to reinvest in your business, and prevent you from delivering the level of service your clients deserve. You might see some articles suggesting rates as low as $250 a month, but scaling a profitable firm at those price points is tough.
Fixed Rate
Here is a look at how you will include the forecasted accountant cost into your price calculations when utilizing the 2 pricing methodologies that have been previously explained. Thanks to some of the marketing for accountants strategies you’ve leveraged, you’re now ready to chat with a prospective client. Business owners love Patriot’s award-winning payroll software. Many clients may be willing to pay a little more in exchange for trustworthy knowledge and training. There are a number of certifications you can get as a bookkeeper.
- You may want to charge a lower price if you only offer basic bookkeeping services, like data entry and financial statements.
- Value pricing is a bookkeeping method that assesses the value of products or services based on their perceived worth to the customer rather than on their actual costs.
- Figuring out the right price or the right way to package your services isn’t easy.
- When pricing your services, one item to keep in mind is which types of payments you will accept.
- Some months might require basic bookkeeping tasks, while others could involve a deep dive into accounting software to organize financial data or generate comprehensive financial reports.
Traditional vs Value-Based Method of Pricing Bookkeeping Services
It’s a silly hangup, but I always want to find a way to skip past my hourly rate or the total cost of my first invoice and get straight to the work. The thing you forget when you go out on your own is you’ve now got several bosses. If you need to raise your rates, you’re suddenly asking a dozen bosses for a raise. To illustrate what a medium client looks like, I’ll be using a law firm I do bookkeeping for that generates about $800k in revenue a year.