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. In addition to getting certified through the AIPB or NACPB, providers may also advance their learning to get certified stationery is an asset or an expense in QuickBooks. Once all certification requirements have been met, one will earn the designation of Certified Professional Bookkeeper (CPB). You also get the benefit of a higher expertise level compared to training your office manager for bookkeeping.
We examined monthly package pricing from the top online bookkeeping services featured in a recent Forbes Advisor article and found the costs can vary greatly. The average hourly rate for a bookkeeper is approximately $21 based on Salary.com data as of February 2024. Geographic differences also impact rates, with some states having averages 28% above or below the national level. Proper qualifications are a must, but more experience also costs more. Experienced bookkeepers can charge more than $25 per hour, while entry-level bookkeepers make around $19 per hour on average.
Automate common bookkeeping tasks and grow your client base
Your bookkeeping team reconciles your accounts, categorizes your transactions, and produces your financial statements. They also make adjustments to your books to ensure they’re accurate and tax-compliant. Occasionally we might need your input on things like categorizing a transaction properly, but we try our best to make bookkeeping as hands-off as possible for you. Not every business owner needs the same level of financial management services. Depending on your industry, the size of your company, how many employees you have, and how long you’ve been operating, you may need more or less support. As great as it is to talk about potential bookkeeping costs and get estimates, we know that seeing an actual average for your state can yield excellent value for you as a business owner.
Experience
- A strong alternative to hourly billing is fixed-rate (or flat-fee).
- Studies show that if given three options, consumers are 66% more likely to choose the middle tier.
- These include basic and full-service bookkeeping, where the decision largely depends on your business goals and needs.
- Rather than hourly billing, some professionals offer flat monthly fees for defined packages of 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.
- Go for professionals who have already worked with similar businesses.
And in turn, these certifications can increase your expertise (and your pricing). The overall cost depends on various factors, the most important being experience, education, and certifications. Although not a crucial factor, it’s important to ensure the bookkeeper has experience working with software that you find convenient. The type and number of certifications a bookkeeper has can impact the actual cost of their service.
This 3 5 notes receivable financial and managerial accounting ties into client size and is a good way to stay transparent while correctly charging larger clients. A full charge bookkeeper has a larger responsibility and full oversight over a company’s finances. If you’re not there already, it’s worth upskilling to get to that point, as you’ll be able to justify higher pricing packages. Generally, small to medium-sized businesses expect to pay between $500-$2,500 USD monthly for their outsourced bookkeeping—an dauntingly large range to deal with.
Types of bookkeeping: Basic vs. full-service accounting
There are plenty of options out there to find a bookkeeping package that will meet your needs no matter how big or small your business is. Otherwise, you may wind up missing out on profits or scaring off clients with high rates. Do your research ahead of time to find average rates for services in your state. If needed, make adjustments to your pricing to reflect costs in your locality or state. The number of tasks you assign to them directly impacts the price of each bookkeeping service. The more experienced the bookkeeper, the more confident they are with their skills.
Though you don’t need to be a certified CPA as a bookkeeper, there are still certifications you can gain to justify a higher fee for your services. When you’re calculating your rates, especially in a new location, doing local research is crucial. Ask other bookkeepers about services, rates, and gather any other information about working in your area that will help you stay competitive.
What Services Do Bookkeepers Provide? (And the Cost)
Ideally, importance of vertical analysis 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. Even if you hire a part time bookkeeper, your management would still have to review their work. For example, a 50 employee manufacturing company with multiple locations will need more work than a 5 employee professional services business.
If they value your relationship and the service you provide, they’ll understand why you make occasional and reasonable increases. As a bookkeeper, you can and should leverage your experience to increase your profit. If you’ve been working in the industry for 10 years, for example, you’ll have the client base, referrals, references, and body of work to quote a higher rate. For example, the National Association of Certified Public Bookkeepers (NACPB) offers a QuickBooks Online certification. Xero and other accounting software have their own qualifications which, once earned, show you’re an expert in their product.