Bookkeeper Pricing: How to Charge and What to Recommend

💰Hourly pricing is a basic and common method for bookkeepers, but it may not accurately reflect your value and can limit your income potential.

📊Fixed-rate pricing is ideal for long-term clients and provides stability for both you and your client. It allows you to set a fixed monthly rate based on your estimated monthly workload.

💸Charging a percentage of your client's income is a fair and transparent pricing method that aligns your income with the success of your client's business. It works best for clients with a steady and predictable income.

🔍Consider the hidden costs of running your own business, such as equipment, software, education, insurance, and taxes. Factor these costs into your pricing to ensure profitability.

👩‍💼As a contractor, you save clients money on taxes and other expenses associated with hiring an employee. Highlight the benefits of hiring you as a contractor during job interviews or client consultations.

What is the average hourly rate for bookkeepers?

—The average hourly rate for bookkeepers can vary based on factors such as location, experience, and services offered. It is recommended to research rates in your area and set your pricing based on industry standards and your expertise.

How do I determine a fair fixed rate for my bookkeeping services?

—To determine a fair fixed rate, consider factors such as the complexity of the client's books, the estimated time it will take to complete the work, and your desired income. You can also benchmark your rates against industry averages and competitors.

Are there any drawbacks to charging a percentage of client's income?

—Charging a percentage of a client's income may not be suitable for all clients, especially those with fluctuating incomes or irregular cash flow. It is important to assess each client's situation and discuss the pricing method that best suits their needs.

How can I justify my pricing to potential clients?

—When justifying your pricing to potential clients, emphasize the value you bring through your expertise, attention to detail, and ability to save them time and money. Showcase your specialized skills and knowledge to establish your worth in the market.

What are the benefits of hiring a bookkeeper as a contractor?

—Hiring a bookkeeper as a contractor provides flexibility, cost savings on taxes and benefits, and access to specialized expertise. Clients can enjoy the convenience of outsourcing their bookkeeping needs without the overhead costs of hiring a full-time employee.

00:00Introduction to bookkeeper pricing and the importance of charging correctly.

03:32Exploration of different pricing methods for bookkeepers, including hourly pricing, fixed-rate pricing, and percentage of client's income.

09:44Discussion of the hidden costs associated with running a bookkeeping business and the importance of factoring them into pricing.

14:25Explanation of the benefits of hiring a bookkeeper as a contractor and how to justify your pricing to potential clients.

19:15Conclusion and recap of key insights and pricing strategies for bookkeepers.