Self-employed bookkeepers can charge clients $35 or more per hour. For example, the process is similar to hiring an in-house bookkeeper but you don’t have to add overhead costs for employees on the payroll. Outsourcing bookkeeping is a good option when you could use a hand hiring a bookkeeper for keeping track of a part of your financial management.
How to Politely Decline a New Client by Phone, Email, and Text
Bundling services together in set packages is a good way to implement fixed-fee pricing. However, there are slightly more sophisticated ways to package your bookkeeping services that encourage repeat clients, and maximize profits. They would know what services to expect from you, and you could charge an automatic, monthly fee. It allows you to adjust your fees without painting yourself into a corner, which can happen if you provide quotes to clients when you don’t know the details of their business. Value-based pricing means pricing your services upfront based on the perceived value they have to your clients.
How To Hire The Right Bookkeeper
Depending on the amount of work involved, you can hire either a full-time bookkeeper or a part-time bookkeeper. A lot of newly-launched businesses choose to do bookkeeping themselves in the early stages, which is a cost-conscientious decision. Understanding your options for bookkeeping services and their costs will help you tremendously in ensuring the long-term growth of your company.
You can go for part time bookkeeper, full time bookkeeper, or outsourced bookkeeping services. To prevent any unexpected expenses, it’s crucial to establish all the costs and obligations upfront before engaging a bookkeeper. For instance, if your business uses accounting software, they may charge a fee for setting it up or maintaining it on an ongoing basis. When you decide to hire a bookkeeper, it’s important to be aware of the various expenses that may come along with their services. Overall, choosing a bookkeeper who charges flat fees can be a wise decision for small business owners who want to ensure their finances are managed effectively while maintaining control over their expenses.
What is a bookkeeper called now?
Individuals pursuing a career in bookkeeping can expect their title to be bookkeeper, bookkeeping clerk, accounting specialist, accounting clerk, or auditing clerk. Although these titles differ, the role behind the title is generally the same.
And let’s not even get into how they’re more qualified, dedicated to handling bookkeeping and nothing else and – GASP! But bookkeeping is much like going to the dentist – no one actually wants to do it, but not doing it simply isn’t an option, either. Learn more when you schedule a consultation to discuss what the virtual receptionists at Smith.ai can do for your small business. What’s more—if you’re still working on that outreach and self-promotion, ask how we can assist with outbound sales support and outreach campaigns, too. Plus, it all comes with a strategy to manage every last detail.
If you think they’re too high for you to set reasonable rates, consider lowering them. It’s the future in a changing accounting industry, where you can utilize tech to increase efficiency and output. The number of tasks you assign to them directly impacts the price of each bookkeeping service. That’s why it’s important to consider a person who has at least a bachelor’s degree. However, the rates can vary drastically depending on the state. The geographical location of your bookkeeper plays a massive role in how expensive the service will be.
Business owners who wish to automate their financial tasks can use some of the latest tools on the market. You also get the benefit of a higher expertise level compared to training your office manager for bookkeeping. Average monthly fees for this type of activity include from $500 to $2,500. This doesn’t include the benefits that can cost up to 20% of their salary. However, any error or oversight that may appear on the sheet is fully at your business’s expense.
What Do Bookkeepers Do?
What is the going rate for a full charge bookkeeper?
As of Jan 1, 2026, the average annual pay for a Full Charge Bookkeeper in the United States is $59,429 a year. Just in case you need a simple salary calculator, that works out to be approximately $28.57 an hour.
Generally, larger clients take more of your time. Don’t be fearful of having conversations about raising rates with long-term clients. As a bookkeeper, you can and should leverage your experience to increase your profit. They’ll be more inclined to pay higher fees if they see you’ve been endorsed by well-known software companies, especially if it’s the software that they use for their accounts.
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If you charge too little, they’ll undervalue your services and you make less money. Think of this bookkeeping service as a mix between traditional accounting and bookkeeping. You can calculate the time spent on bookkeeping tasks and translate that into dollars.
- In an ideal world, all your clients would be ongoing at a fixed or value-based billing structure.
- With the right technology, you can automate bookkeeping processes and tasks that once took hours of your time.
- 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.
- Discover how accounting professionals across 6 continents are using AI at their firms, what they’re excited about, and what concerns them.
Type of Services Provided
- These tasks might require different certifications, specialized skills, or additional time, which means they can be billed at a different rate.
- As a small business owner, spending this kind of money could be a challenge.
- In addition to the hourly charges, state & federal laws will also likely require you to pay for the employee’s benefits such as health insurance and vacation time.
Discover the direct correlation between standardized processes and boosted profits for your accounting firm. Set your accounting firm’s tech stack up for success by asking the right questions. Discover how accounting professionals across 6 continents are using AI at their firms, what they’re excited about, and what concerns them. The most comprehensive global study on AI usage, perceptions, and attitudes in accounting. The challenge though, can be persuading your clients to agree to it. Ian discussers the phases of transitioning to value pricing (setup, implementation, and execution) and walks you through the process in ten proven steps.
Different industries also require different services, which can affect the overall cost. It’s also important to make sure they have experience in accounting software you use. Go for professionals who have already worked with similar businesses. As a result, they come with a higher monthly cost for business owners. The more experienced the bookkeeper, the more confident they are with their skills. Having the proper education and experience is crucial, but it’s not the most important factor in determining the price of the service.
Automate common bookkeeping tasks and grow your client base
In a nutshell, a bookkeeper records your financial transactions and collects information to create general financial reports. They keep your financial books in order by tracking the revenue and expenditure This is achieved by performing data entry in accounting software. As a small business owner, you want to make well-informed decisions about financing your bookkeeping expenses, and you want to do it correctly. Because it’s easier for clients to pay invoices, accepting payments online means you can get paid up to 2x faster. Depending on the level of experience and responsibilities, some firms have Senior Bookkeepers, Accountants, and Controllers charging $80-$150 per hour. This arrangement can be beneficial for small business owners who want to budget and plan their expenses more effectively.
Fixed-fee pricing allows you to increase profit as you increase efficiency—the more efficiently you can work, the greater the profit margin. For example, you might process a certain number of transactions for one cost, but going over that incurs a different fee. For certain jobs, it’s wise to make this fixed-fee model scalable.
Bookkeeping services pricing guide: How to nail your pricing
Let’s compare the how much do bookkeeping services for small businesses cost cost of an in-house bookkeeper vs. an outsourced bookkeeper. Accountants who have a bachelor’s degree in accounting – or a finance degree considered an adequate substitute – and interpret, classify, analyze, report and summarize financial data. “So then why wouldn’t I hire an accountant who could handle all of the above? Here are some typical tasks that bookkeepers do – and don’t do …
Typically, accountants can handle bookkeeping and the other accounting and finance elements of your business. If you don’t need all the services of a CPA, you could hire a bookkeeper instead, which would cost around $30 to $90 per hour. Lalea & Black is a full-service Los Angeles CPA firm specializing in outsourced accounting, bookkeeping, business management, and tax services. This is why accounting & bookkeeping service firms are so useful to businesses worldwide.
Frequently Asked Questions
You’ll find that bookkeepers who have completed all 3 programs have a much higher average hourly wage. Freelance bookkeepers often come from different backgrounds, but this doesn’t mean they necessarily offer lower prices for their services. Whether you’re a self-employed professional, a business with employees, a business with contractors, or a freelancer, you can benefit from FreshBooks’ services. FreshBooks is an invoicing and accounting software for small businesses. Small businesses are most often prone to outsourcing their bookkeeping to third parties. They will keep your books in order and ensure your business has the financial strength required to operate.