How to Package Your Bookkeeping Services 6 Simple Steps
When it comes to bookkeeping packages, there are several pricing models to consider. Each has its own pros and cons, and the right choice depends on your business needs and budget. Let's break down the main types of pricing models you'll encounter. We value your personal information and take the necessary precautions to limit access to it by unauthorized users. Client’s usernames and passwords are secured using our LastPass Enterprise encrypted password vault. Data and reports are delivered to clients via email unless otherwise specified by the client.
Communicating Your Pricing Strategy to Clients
However, you must clarify how much each fee allows your clients to ward off the all-too-familiar scope creep. In the past, bookkeepers manually entered expense receipts, which, let’s say, took 4 hours per month. However, these days, optical character recognition (OCR) tech scans receipts and uploads all the vital information in less than an hour. Your client's result is the same, but you’re down three monthly work hours. A small freelance bookkeeping business with no employees that you run from your kitchen will have lower fixed costs than a firm with a few employees and an office. Fixed costs are the first thing you must calculate when setting bookkeeping prices.
- However, as you start spending more time growing your business, you’ll tire of performing the bookkeeping tasks.
- Businesses typically expect certain services to be part of bookkeeping, but providing additional offerings that add value to your clients' businesses can justify charging a higher fee.
- But breaking it down and building your pricing model by considering all the relevant factors will give you a reasonable solution to test.
- Carefully estimating your typical monthly transaction volume will help you identify the most cost-effective per transaction pricing.
- Bookkeeping client portal software like Copilot was built to provide that.
- Marketing the services that add value to your clients outside of your typical responsibilities is a great way to increase revenue.
QuickBooks Setup & Bookkeeping
Noticing trends for the different pricing systems that you test is key to establishing the right balance. Studies show that if given three options, consumers are 66% more likely to choose the middle tier. If you think they’re too high for you to set reasonable rates, bookkeeping pricing packages consider lowering them. A major and effective way to do that is to move to a remote or hybrid work set-up. 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.
Finding Cost-Effective Solutions
A common way to do this is by building a tiered system for different levels of service. However, there are slightly more sophisticated ways to package your bookkeeping services that encourage repeat clients, and maximize profits. For certain jobs, it’s wise to make this fixed-fee model scalable. For example, you might process a certain number of transactions for one cost, but going over that incurs a different fee. This ties into client size and is a good way to stay transparent while correctly charging larger clients.
Do they handle payroll, tax preparation, and financial analysis? It's important to know if there are any hidden fees or caps on service hours or transactions. The services offered here include managing the general ledger, reconciling accounts, AP and AR, payroll processing and management, tax compliance, and more. This data shows how much time your team needs, on average, to complete a given task.
Frame your pricing within this context of value, emphasizing the long-term benefits your clients will gain. While this may sound simple enough, the traditional model has its challenges. If you've ever managed a business owner's account, you'd know that the workload isn't always steady. As a result, the monthly fee can fluctuate, making it hard for your clients to budget accurately, and may lead to some eyebrow-raising when they receive an unexpectedly high invoice.
In this article, we’ll look at the primary factors that go into setting your bookkeeping service prices and explore the most popular pricing models you can choose. Then, we’ll share some real-world examples so you can see how it's done. Unlike other bookkeeping solutions, we don’t remove your login access after your subscription has ended.
Live Expert Assisted doesn’t include cleanup of your books or a dedicated bookkeeper reconciling your accounts and maintaining your books for you. If you don’t need accounting just yet, our new money solution offers banking, payments, and 5.00% APY—all with no subscription or starting fees. Same as our monthly bookkeeping services, at a quarterly frequency. Perfect option for keeping up to date when your transaction volume doesn’t require monthly upkeep.
The Bookkeeping Company's Industry Familiarity
Whichever approach you take, be sure the prices for each package reflect the work required to deliver each of the included services. A good approach is to create a few packages for clients to choose from. This streamlines workflows for your team and helps them build their expertise on your core services. 58% of accountants said updating technology has improved efficiency and productivity, which is vital for creating space to add the services that clients demand. 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.
Why Package Your Bookkeeping Services?
Average monthly fees for this type of activity include from $500 to $2,500. One of the main benefits of such an approach is that you can customize the services you want the bookkeeper to provide. They will keep your books in order and ensure your business has the financial strength https://www.bookstime.com/law-firm-bookkeeping required to operate. For medium to large-size business owners, full-charge bookkeepers can also manage payroll. Now that you know the different pricing packages and services available, you are in a better position to decide what the best package applies to your business.
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