If you spend too much time on bookkeeping, it’s easier to hire an accountant for a small business to keep track of your financial records, financial statements, and other elements. You must understand what bookkeeping services you need and whether it’s best to hire a professional bookkeeper full time, part time, or outsource the service. Another option is to offer an hourly rate for the first job with a new client. Once you feel comfortable with their business and how they work, then use those hours to calculate a fair value-based fee to charge in the future. Becoming certified in your accounting software is a green light for business owners.
Every report accessible in the Bench platform can be exported to an Excel file for easy sharing with anyone from business partners to accountants. I’m in charge of sending invoices out to their patients, so I look in the system how much we are supposed to be charging them. For example, the appointment may have cost $300, the insurance covered $200 of the charge, which leaves $100 as the patient’s responsibility. The thing that takes how to prepare a cash flow statement the most time with this client is the invoicing.
Occasionally, there’s a problem where I need to dig to find the solution, or my client has a special request I need to take care of, and in those cases, it will take me the full five hours. I like to calculate my rate based on my max time, but then I’m rewarded if I work quickly and efficiently. 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.
If a client takes advantage of multiple services, charge accordingly. You may also want to increase pricing depending on what services are in demand and when they’re being taken advantage of (e.g., last-minute requests). Many clients may be what is sg&a guide to selling general andadministrative expenses willing to pay a little more in exchange for trustworthy knowledge and training. The type and number of certifications a bookkeeper has can impact the actual cost of their service. Small businesses are most often prone to outsourcing their bookkeeping to third parties.
Automate common bookkeeping tasks and grow your client base
This means that regardless of a service’s value to your clients, you’re capping your pricing based on how long it takes to deliver that service. 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. And now that you know the answer to the question “How much does a bookkeeper cost? ” you may wonder what exactly a bookkeeper does and the different types of bookkeeping services you can pay for. One thing many business owners end up turning over to a professional is their bookkeeping.
Zeni supports unlimited transactions from unlimited accounts for a flat monthly fee. As you’re evaluating bookkeeping service packages, we’d like to show you what makes Zeni’s price packages different from other bookkeeping solutions. We are not a traditional finance firm, and our service plans aren’t traditional either.
Bookkeeper salary and hourly cost by state
The overall cost depends on various factors, the most important being experience, education, and certifications. Although not a crucial factor, it’s important to ensure the bookkeeper has experience working with software that you find convenient. You’ll find that bookkeepers who have completed all 3 programs have a much higher average hourly wage. On paper, a part time bookkeeper may look like an attractive option. However, any error or oversight that may appear on the sheet is fully at your business’s expense.
- At the end of the accounting period, take the time to make adjustments to your entries.
- You will also be in a better position to outsource more advanced management accounting and controller.
- Otherwise, you may wind up missing out on profits or scaring off clients with high rates.
- The best accounting software automates a lot of the process in journal entries for regular debits and credits to help eliminate possible errors in data entry.
- However, there are slightly more sophisticated ways to package your bookkeeping services that encourage repeat clients, and maximize profits.
What Do Bookkeepers Do?
So to bill correctly, it’s important to identify what you’re charging for, the way you charge, and what adjustments you can make to improve your bottom line. Sales, production, and employee retention are all extremely important. And while it may not be the most glamorous topic, bookkeeping also plays a part. There are many aspects of being a business owner that drive success. In addition to getting certified through the AIPB or NACPB, providers may also advance their inventory management methods learning to get certified in QuickBooks. The geographical location of your bookkeeper plays a massive role in how expensive the service will be.
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. Consider investing in simple software like FreshBooks for additional help in handling your finances without breaking the bank. The professional services accounting software used can impact the price of the service. Maybe the freelancer is experienced in a single software and charges a lower rate for it.
Zeni vs. Traditional Bookkeeping Packages: How Does It Stack Up?
With the right technology, you can automate bookkeeping processes and tasks that once took hours of your time. If you’re already doing a client’s books, approach them with an offer to build on your role. They already trust you and you already know how their business works. 58% of accountants said updating technology has improved efficiency and productivity, which is vital for creating space to add the services that clients demand. Bundling services together in set packages is a good way to implement fixed-fee pricing. A common way to do this is by building a tiered system for different levels of service.