However, be aware that business size does affect a bookkeeper’s workload and may lead to you paying more or even for a second bookkeeper to alleviate some of that burden. If any of these warning signs resonate with you, the bank reconciliation course of — accountingtools 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.
Push value-add services
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.
You want to set a premium on certain services.
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. Marketing the services that add value to your clients outside of your typical responsibilities is a great way to increase revenue.
Eight key factors will impact the hourly rate you’ll charge for your services. 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. This firm has seven employees, which includes their attorneys and their general staff.
Comparison of bookkeeping fees
You’re also learning their business and don’t know exactly what tasks you will be doing. There can be multiple variants that play in the pricing factor. 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.
- There are two main types of bookkeeping to be aware of when deciding what type of bookkeeper to hire.
- Therefore, you generally want to charge a small client less because they have fewer needs.
- Common projects include financial audits, IPO preparation, M&A services, forensic evaluations and documenting internal controls.
- For example, a freelance bookkeeper located in India or other low-cost countries can charge less for their services compared to an independent bookkeeper in Europe or Canada.
- The average hourly rate for a bookkeeper is approximately $21 based on Salary.com data as of February 2024.
So, it’s important to know how much to charge clients based on location. One of the most fundamental decisions business owners face is whether to outsource bookkeeping tasks or hire an in-house bookkeeper. Proper qualifications are a must, but more experience also costs more.
You have to use an hourly rate.
Ultimately, businesses should consider their budget, needs, and preferences when choosing the right bookkeeping solution for their organization. Online bookkeeping services typically include basic bookkeeping tasks 15 best practices in setting up and sending nonprofit newsletters such as transaction recording, bank reconciliation, financial reporting, and tax preparation. While online providers may offer less personalized service compared to traditional firms, they can be a more affordable option for small businesses and startups with limited budgets. For project bookkeeping services such as financial statement audits or implementing new accounting software, costs are typically in the range of $500 to $7,500 per project. In this case, companies only pay for the specific services utilized, so there are often cost savings versus hourly or monthly fees. Other factors that can impact the hourly rate include the freelance bookkeeper’s level of education, certifications obtained, such as QuickBooks ProAdvisor, and the software used.
Common projects include financial audits, IPO preparation, M&A services, forensic evaluations and documenting internal controls. Now that you know the answer to the question “How much does a bookkeeper cost? You may also consider using online bookkeeping services and accounting software to save time and money, all while meeting your 10 best quickbooks alternatives in 2021 bookkeeping needs. Ideally, hire part time bookkeepers when you can do some of the accounting yourself, and could use extra help for employee timesheets, accounts payable, and accounts receivable tracking.