Hourly wages/salary costs, however are not the full story for an in-house hire. Getting answers on the cost of bookkeeping is often less than straightforward. There’s a lot of different information floating around on cost, and it’s not always clear what might apply to your particular situation. There are also several different ways to approach getting a bookkeeper, which can make it tricky to do apples-to-apples comparison. The fastest way to answer these questions is to check what other bookkeepers are charging. But look for bookkeepers in your region, or serving your industry, or providing the same services as you.

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 2022 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. On the other hand, bookkeepers are the more affordable option. They require the least amount of education and focus on recording transactions, whereas an accountant or CPA spends their time analyzing financial data and generating financial statements. You can calculate the time spent on bookkeeping tasks and translate that into dollars.

How To Start A Bookkeeping Business (2023 Guide)

At BELAY, our model is a set subscription paid on the first of each month. That subscription is set and based on an agreed-upon scope of work, and will not incur additional fees based on transactions or report requests. So let’s dig into two financial services – accounting clerks and bookkeepers – your organization could use and how to decide which one is, like Goldilocks, just right for you.

This, of course, allows you to charge more without working any additional hours. My minimum price for bookkeeping services is $500 a month. An average client your size normally pays $750 a month. Once you have decided on a price for you bookkeeping services, it’s important to communicate it effectively. You should always be prepared to give your prospective client your minimum price and also tell them what your average client pays.

7 Common Bookkeeping Mistakes

On top of this, it is also a bookkeeper’s job to keep everything organized. That way, when it is time to file your small business taxes, you can easily access all the data you need. Full time bookkeepers earn from $35,000 to $55,000 per year. This doesn’t include the benefits that can cost up to 20% of their salary. In a nutshell, a bookkeeper records your financial transactions and collects information to create general financial reports. Business owners can then use those financial reports to make better-informed financial decisions to boost the growth and profitability of a company.

Bookkeeping vs. Accounting

At some point or another, you may have clients of all sizes—aka small, medium, and large clients. And when one client’s size is larger than another client, you’re going to want to price services accordingly. In the past, it was popular for bookkeepers to charge per transaction. To be honest, I’ve never done it that way, so I’m not as familiar with what the rates would be for this type of pricing. If you’re interested to learn more, Google it, and I’m sure a plethora of information will show up. Many bookkeepers charge their clients for initial consultations because it gives them a chance to look at the books.

Go for professionals who have already worked with similar businesses. It’s also important to make sure they have experience in accounting software you use. Bookkeeping services are necessary for businesses of all sizes. Whether you decide to outsource your bookkeeping or do it with an in house bookkeeper, you should be aware of the costs involved. As a small business owner, you want to make well-informed decisions about financing your bookkeeping expenses, and you want to do it correctly. The template is divided into seven sections, and includes critical details for each step.

You’ll also get burn rate calculations, which is helpful for startups that need to closely track their spending. It’s also ideal for brand-new businesses because FinancePal can help with entity formation. The specific amount you charge your clients for bookkeeping services will depend on your certifications, years circular-flow diagram of experience and familiarity with the client’s business. You can look at freelance sites, such as Upwork, to see what others are charging for bookkeeping services, but you can also learn a lot by asking around. Talk to businesses in your area to see what they are currently paying for bookkeeping services.

Ways to Attract Millennials to your Accounting Firm

You can read more about our ratings for various business accounting software here. You should be familiar with more than one software as some of your clients may have a preference in terms of the accounting software that they’d like you to use. The price that you’ll set will be based on your service offer which has to explicitly address the needs and pain-points of the small business owners identified in the meeting with your client. Both have different rates and services, so doing your research to find the right solution for your business is essential! Let’s jump into the differences between basic bookkeeping and full service bookkeeping— and how to choose the best option for you based on your needs and budget. Not every business owner needs the same level of financial management services.

But if it’s more complex, like building out your financial outlook, you might be better off with hiring an accountant. If any of these warning signs resonate with you, it may be time to hire a bookkeeper. But before you do, let’s look at some questions you should ask yourself before making the decision. But who wants the task of sifting through receipts and organizing statements when there’s a whole slew of business operations to attend to? It may be time for you to make the executive decision of hiring a bookkeeper to take the reins. You’ll find that bookkeepers who have completed all 3 programs have a much higher average hourly wage.

Accurate books you can count on

The best way to know if a pricing structure will work for you is by testing it. Noticing trends for the different pricing systems that you test is key to establishing the right balance. Asking yourself these questions is vital to knowing the right bookkeeping pricing for you.

Talking Points to Snag that Client

We know that every business has its own specific bookkeeping requirements, so we work with you first to understand your needs before preparing a customized bookkeeping pricing package. Whether you’re a small, medium or large business, we have a plan for you that will support your current season. Katherine Haan, MBA is a former financial advisor-turned-writer and business coach.

You can categorize your clients into small, medium, and large based on the amount of time you spend on their bookkeeping each month. I work closely with my clients to develop their monthly bookkeeping packages. Susan earned an additional $56k in revenue in 9 months. Now here’s the bonus, she reduced her work hours without lowering her income.

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