How Much Does Bookkeeping Cost?

Harmony & Company takes the time to add a personal touch when providing services for individuals and small businesses. When deciding between an in-house bookkeeper and online services, think about how much you’ll need to pay. In-house bookkeepers usually get a regular salary, which means you pay them the same amount regularly, plus benefits like health insurance. Online bookkeeping services might charge lower rates because they work with many clients at once, spreading out their costs. Bookkeeping is not just one simple task; it includes many different kinds of services.

Even if you switch to fixed fees or a value pricing structure for your main bookkeeping services, you may have additional services that command a premium. Mastering how to price bookkeeping services requires a balance of understanding your value, assessing your client’s needs, and maintaining open communication. Remember, the goal isn’t just to bill clients, but to build long-lasting relationships based on trust and value. As a modern, online bookkeeping professional, your strategic pricing model could be the deciding factor that distinguishes your services from the rest. If you’re using a fixed fee structure, explain what this entails. Be upfront about what’s included in your services and what would incur additional charges.

Traditional vs Value-Based Method of Pricing Bookkeeping Services

If you’re contracted as a bookkeeper, your client isn’t in charge of your sick time or vacation time or disability or leave or anything that they may have to think about with an employee. Additionally, there are quite a few outside expenses that come with hiring an employee. At minimum, they need to provide you with an office space, a desk, and a computer. bookkeeping pricing packages As a contractor, you’re using all your own equipment, so you’re saving them all of that money. You can categorize your clients into small, medium, and large based on the amount of time you spend on their bookkeeping each month. Because these organizations are flow-through entities, the owners, partners, and shareholders pay taxes on the income.

The information provided on this website does not, and is not intended to, constitute legal, tax or accounting advice or recommendations. All information prepared on this site is for informational purposes only, and should not be relied on for legal, tax or accounting advice. You should consult your own legal, tax or accounting advisors before engaging in any transaction. The content on this website is provided “as is;” no representations are made that the content is error-free. Keep in mind that you should always get a signed engagement letter or service agreement from your client before you start any work.

Automate common bookkeeping tasks and grow your client base

Outsourcing accounting services allows you to reap the benefits of an accountant without the costs of a full-time employee, such as insurance and other benefits. 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. Bringing someone on as an in-house full-time employee requires extra costs on your end, such as benefits and health care, whereas contractors are not entitled to these perks. You may not know how long you’ll need someone, but comparing the monthly bookkeeping cost of a contractor versus an in-house employee is the best way to see this angle side by side.