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Monthly Bookkeeping

May 12, 2021
Bill Kimball

how to package your bookkeeping services

This includes live bookkeeping for up-to-date information at all times and monthly or quarterly accounting for the most accurate financial reporting. Most Premium packages also include financial statement and business review meetings, tax projections, and/or tax planning. We also provide both accounts receivable and accounts payable services, including customer invoicing, payment processing, and bill payment. Our bookkeeping price packages are varied to give you several options. These services are customized to the exact needs of business owners. The on-boarding or Starter package pricing starts at $500/month, the Standard package is priced at $750/month, and the Pro package is priced at $1000/month.

Remember, your goal is to learn from these initial roll-outs. They need to buy into the idea that they’re adding value to the firm, not just putting in hours on a one-time project. Once your bundle structure has been set, how much do you charge? It’s vital to get this right, because charging too much or too little will affect your profit dramatically.

Even better, try to learn from how other accountants are charging for their services. Keep an open mind and be prepared to change strategies if the change will help your business. If you’re starting to evaluate what pricing strategy makes sense for your firm, you may consider taking a look at some common pricing structures other accounting firms use. We’ve rounded up five common pricing strategies and included an overview of some of the advantages and disadvantages of each. The way you price your accounting services shouldn’t be arbitrary. Pricing your services effectively can mean the difference between scraping by and robust growth. Educate yourself about state and federal payroll laws if you are not aware of them to avoid problems for your clients.

What Does A Bookkeeper Do For Your Small Business?

Offer additional services if you desire, including audit preparation, loan packaging, business plans and accounting software training. Nearly every company needs bookkeeping and payroll services. Accurate bookkeeping and payroll services are important to the successful operation of a company. Some companies cannot afford to hire staff permanently, so they employ the services of freelance bookkeepers. Other small companies do not need permanent staff because of their small financial requirements. If you like working with numbers, consider starting a bookkeeping and payroll company. As a freelance bookkeeper and payroll service provider, you set your own prices, take on as many clients as you desire and establish the services you wish to provide.

Same for other contracted services you might pay on a flat rate, such as your cable bill. Therefore, you can still charge your regular, agreed upon monthly rate irregardless of whether services are heavy or light. This moves the client more toward recognizing the overall big picture value you provide, and not the time-for-money route.

how to package your bookkeeping services

These are often those advisory services that we hear about. Here is a word of advice when it comes to pricing your packages that we have learned during our pricing journey. If you never get push back from the prospective clients when discussing pricing then chances are your pricing is too low. Keep adjusting them up until you find the point of pushback. One important consideration to always keep in mind is to always be sure to look at your packaged services from your client’s point of view as well as your own. Sometimes, things that appear to have little value, or cost to you, may have great value to your client and will appear in your package as a huge value add for the client. In your minimum package, provide only basic bookkeeping and no frills.

Ideally the client should emerge from this step seeing you as an extension of their business. They need to know what you’re doing – and why and how you’re doing it.

But once you’ve made the decision to move to value-based pricing, how do you go about implementing it? We’ve broken down the process into 10 steps, which we explain in detail. Your practice can provide a truly superior service or experience and charge more than the competition.

They keep themselves packed in delivering top-notch quality products and services. Because of limited resources, they avoid outsourcing monthly bookkeeping service packages on the concern that how much would bookkeeping cost them. Also, hiring a separate accounting team is a big stress on the business expenditures. However, it is advisable to look for monthly bookkeeping service packages for getting the following benefits. CPAs have designed the bookkeeping services that LYFE Accounting offers to small businesses. This ensures that the services and packages are of the highest quality.

How Much Should You Be Paying For Bookkeeping Each Month?

The most common reason to require a specialized Bench team is that your business needs to track cash revenue, cash expenses, accounts receivable, accounts payable, or segment level bookkeeping. Tell us your average monthly expenses and we’ll suggest the plan that’s right for your business. The package comes with a customized form to submit all questions and a guaranteed 24 business hour response time. Pricing for above packages will be based on your specific volume of transactions and complexity of accounting needs.

Consider charging extra fees for mileage if you must travel to your clients’ offices. Bookkeeping and payroll rates vary by region and professional experience. A bookkeeper with many years of experience typically charges more than a bookkeeper with little experience. Outsourcing also offers many benefits that you can’t get with an in-house bookkeeper. If you’re growing, the outsourced bookkeeping service should be able to help you scale by adding full service accounting when you are ready for it. You can expect a full charge bookkeeper to run operations associated with paying bills, billing clients, managing time-sheets and payroll, and processing financial statements at month end.

how to package your bookkeeping services

We will work closely with you to ensure that the right software is used for your business and get the results you want. A dedicated bookkeeper will be assigned to work with your account. If you have any questions, you can email your bookkeeper to clear things up or schedule phone consultations. Moreover, if you want to upgrade your bookkeeping services right away, we’ll review your bookkeeping service fees first and recommend what’s best for you at your current status and budget.

Accounts Payable

Price anchoring gives you a good way to convey that value by showing the buyer that they are getting a good deal. Has anyone ever paid the list price of $28 for this book?

You know as each month arrives what services you already have to do and how much time remains open to seek out and secure other clients. Knowing how much we can, or even SHOULD, charge for our services can be a mystery. Often the only reference we have is what we were getting paid as an employee. But that’s not a good comparison for the value we provide our clients as independent professionals.

The current average full charge bookkeeper’s salary fluctuates between $35,000 to $55,000 per year plus benefits and overhead, depending on your location. According to GlassDoor, current listings in high cost of living cities like New York or L.A. show full charge bookkeepers salaries creeping towards $70K. In addition, you’ll need to add around 20% on top of salary for benefits and overhead including office space. Hourly rates for internal, part-time bookkeepers average around $20/hour depending on job description and location. They typically are performing basic bookkeeping duties and will need to be supervised and managed.

We understand the cost of bringing in an in-house bookkeeper to your company. The costs associated with this not only include salary but payroll taxes, medical insurance, pension plan contributions as well as vacation and sick time compensation. We offer a fixed fee service, giving you predictability and consistency in your costs, rather than an unpredictable price based on an hourly charge. Of course, it’s your business so you can choose how it works. That being said, you can use as a model what the utility companies do when they provide the “budgeting” plans in cold climates for heating bills. They annualize the utility costs so that no matter how much fuel you use, you pay the same amount each month… that includes if you go away on vacation and don’t use any of it at all.

  • Add any Add-On to any package to further customize your package.
  • Invoices will be prepared each month with payment being due on the 1st of the month.
  • The formula doesn’t change as you move up the ladder of additional services.
  • In addition to your standard pricing, design some premium pricing packages.
  • Often the only reference we have is what we were getting paid as an employee.

Still, their accounting or bookkeeping requirements will often be quite similar. Much of accounting or bookkeeping is defined by tax and payroll legislation, which applies to every business. However in the changing climate of the industry, small business are more and more seeking an advisory service, so consider bundling as part of all your packages. Call local bookkeeping and payroll companies to ask their prices, which will give you an idea of what to charge your clients. Decide whether to set an hourly rate or a flat monthly fee.

In addition to your standard pricing, design some premium pricing packages. A basic strategy for pricing your accounting services is cost-plus pricing. In this strategy, you take what it costs to offer your services and add a percentage to that amount to determine how much you should charge clients in order to make a profit. While there are advantages of cost-plus pricing, it often leaves a lot of money on the table for businesses that offer a service rather than a product. Because no two clients find the exact same value in accounting services, many firms offer a menu or package pricing.

how to package your bookkeeping services

This isn’t always a strong point for traditional accounting and bookkeeping firms. You’ll have to explain to your clients exactly how they can benefit from value-based pricing. Want to see what other accounting firms charge for tax preparation services? When it comes to setting prices, you can’t rely on just one variable. Look at numerous different angles, from your competition’s prices to the value of your unique services to your overhead expenses, to discover your firm’s worth. To attract paying clients, you need to find that zone where clients are willing to pay for your services, so you can generate a strong customer base while maximizing your profit.

Services

‘Typical’ is an average bundle that would suit most of your clients, based on what you know of their existing needs. ‘Open-ended’ means taking the ‘typical’ package and then fine-tuning it to suit a client. Selling your firm’s services using value-based pricing – sometimes called value pricing – is becoming an attractive option. New technology and business practices are changing the accounting and bookkeeping market.