Marketing the services that add value to your clients outside of your typical responsibilities is a great way to increase revenue. 58% of accountants said updating technology has improved efficiency and productivity, which is vital for creating space to add the services that clients demand. Value-based pricing means pricing your services upfront based on the perceived value they have to your clients. By definition, fixed-fee pricing is inflexible, and in a complex industry, inflexibility can cost you money. Fixed-fee pricing allows you to increase profit as you increase efficiency—the more efficiently you can work, the greater the profit margin. In any industry, experience is influential in pricing decisions, and bookkeeping is no different.

How To Use a Bookkeeping Pricing Template?

On the other hand, a small business with a singular revenue stream and fewer operations that require basic bookkeeping services typically charges less for these services. Before setting a price, you have to understand what holds value for your clients. While you, as a bookkeeper, might focus on factors like time spent, cost, and profit margin, your clients are primarily concerned with different aspects. It incentivizes efficiency and you get paid before doing the work. Financial Cents has a time-tracking feature that makes hourly tracking easier. Furthermore, you can automate invoice creation and receive payments from your clients using our billing feature.

Free Bookkeeping Pricing Template Guide

A tool like Financial Cents automates many of the repetitive tasks that you have to perform, such as requesting documents from clients and following up with them. Templates, workflows and automations all give you time back in your day that you can spend building your client base and adding value for existing clients. The best way to know if a pricing structure will work for you is by testing it. Noticing trends for the different pricing systems that you test is key to establishing the right balance.

Steroids for your accounting workflow

Whether you’re a bookkeeper or an accountant, it is best to go with software that does all the work for bookkeeping pricing structure you. As somebody looking for the right option, you might have come across a lot of software on the market. But one that will stand out with its exciting features is Cone’s proposal to payment software. Figuring out how much to charge for bookkeeping isn’t just about picking a number out of thin air.

What Services Are You Offering?

This is important because you don’t know how much somebody is willing to pay because we value things differently.” This task probably takes me a couple hours per month to complete. If you are doing anything with payroll, this will vary widely between each client. I like to calculate my rate based on my max time, but then I’m rewarded if I work quickly and efficiently. To illustrate what a small client looks like, I’ll be using a preschool I do bookkeeping for that generates about $150k in revenue a year. This preschool employs six teachers and hosts about 100 students.

• Finding out what fellow bookkeepers in your area are charging for their services will help you set a fair and competitive price.
• Organizations that process many monthly transactions are classified as having a high volume of work, which directly impacts the pricing structure.
• Ditch the one-size-fits-all approach and create tiered packages, like Silver, Gold, and Diamond, that offer varying service levels and value.
• It lets you structure your pricing based on hourly rates or flat fees.
• So how do you ensure you’re setting the right rates, i.e., one that is clear and fair for all?

Remember to look into several accounting firms in the industry, both virtual and physical. Do not settle on the first few that offer their services since there might be better firms with exceptional services and less expensive options for your company. The value-based pricing tier is based on the number of financial transactions processed or value received from services offered. Businesses with varying transactional volumes might find this model beneficial as they only pay for the services they utilize.

• This task probably takes me a couple hours per month to complete.
• Alternatively, you can offer a combination of these models to provide flexibility and cater to a  broader range of client requirements.
• Another option is to offer an hourly rate for the first job with a new client.
• Payments come in electronically, and when they come in, I apply it to the patient’s balance.
• I work a maximum of 10 hours per month on this particular client’s books, and charge $500 a month, which still comes out to be roughly $50 an hour.
• Price anchoring is a strategy that plays on a buyer’s tendency to inherently compare information.

Studies show that if given three options, consumers are 66% more likely to choose the middle tier. Don’t be fearful of having conversations about raising rates with long-term clients. If they value your relationship and the service you provide, they’ll understand why you make  occasional and reasonable increases. Value-based pricing, instead, rewards experience and tech fluency. It’s the future in a changing accounting industry, where you can utilize tech to increase efficiency and output. Depending on what services you offer and the qualifications of your employees, you could alter your pricing to match market standards.

Consider the pricing landscape of other bookkeepers in your area. While you don’t want to be the most expensive option, you also don’t want to undervalue your services. Research your competitors’ pricing models and packages to position yourself competitively. The complexity of a client’s bookkeeping needs will influence your pricing. Businesses with more transactions, multiple entities, or complex tax situations will require more time, resources and specialized knowledge to resolve.

For example, the transportation industry, especially one that traverses international borders, tends to have high bookkeeping service charges. Bookkeeping is an essential aspect of financial management in any business organization, regardless of size. You’ll learn how to price bookkeeping services for profitability in this piece. To illustrate what a large client looks like, I’ll be using a physical therapist office I do bookkeeping for that generates about $1.2 million in revenue a year.