A value-based model allows you to price your accounting services to maximize profitability, eliminate scope creep (for the most part), and build business relationships. It’s a set rate per hour built by considering fixed costs and an ideal profit margin. It’s simple and easy to implement, though it has significant drawbacks in modern accounting. Here is your 2024 guide for pricing your accounting services the right way—to maximize profit and grow your accounting or bookkeeping firm. 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.
And in turn, these certifications can increase your expertise (and your pricing). Learn which trends are shaping the industry in 2024 and what they will mean for your accounting practice. Using this knowledge, you can package your services into three tiers.
Value-based pricing
For example, the average salary for an accountant in Massachusetts is around $25,000 USD higher than an accountant in New Mexico. Some are within your control, others less so, but being aware of all the factors lets you calculate—not guess—what to charge. It lets you justify your pricing, both to yourself and to your clients. Our bookkeepers act as an extension of your team, learning your business, processes, and are with you every step of the way. With LedgersOnline, you get affordable access to a team of highly skilled and experienced bookkeepers, cheaper than what you could hire on your own.
Bookkeepers, especially new businesses (the ones who don’t have to make the sometimes messy transition to another pricing model), should avoid hourly billing for that reason. And with time being the ultimate resource, it’s important to charge clients proportionally to the amount of time you’re dedicating to their services. For example, the National Association of Certified Public Bookkeepers https://www.bookstime.com/ (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. Additionally, invoicing software can streamline the billing process, ensuring your clients have a clear understanding of your charges. Check out this article on the best invoicing software to explore some great options.
Our Bookkeeping Price Packages Help Companies
Then you also need to quantify the volume included within the services. This could mean determining how many bank accounts, credit card accounts, or number of transactions in a month. The price that you’ll set will be based on your service offer which has to explicitly address the needs and pain-points of the small business owners identified in the meeting with your client. We can complete accrual adjustments like tracking accounting and bookkeeping services accounts receivable and/or accounts payable, unearned revenue tracking, and more with our specialized accounting add-on. If we are recording accrual adjustments for you, revenues and expenses are recorded when they’re earned throughout the year, regardless of when the money is actually received or paid. At year end we will remove these accrual elements to ensure your bookkeeping is adjusted back to modified cash basis.
- Another option is to offer an hourly rate for the first job with a new client.
- But who wants the task of sifting through receipts and organizing statements when there’s a whole slew of business operations to attend to?
- Check out the financial forecasting tool for accurate financial forecasting.
- They provide valuable insights into financial performance, ensuring accuracy in the recording of transactions and providing timely reports to help you make better decisions.
Now, certification is not mandatory for running a bookkeeping business. However, it is strongly recommended to earn a reputable image in the market. Also take into account the cost of SEO, content marketing, Email, paid ads, and social media marketing every month. Companies spare 2-3% of their monthly revenue or $500-$2,000 on marketing activities monthly. Further, you can consider the costs of getting business cards, flyers, and pamphlets ready.
