Prices for Bookkeeping Services: How does it work?
If you are considering outsourcing your bookkeeping, one of the first things you might find yourself wondering is what are the standard prices for bookkeeping services? The simple answer: it depends. An appropriate price tag varies depending on how much you want done and for how long.
Of course, you still want to make sure you find the right bookkeeper for the right price, so before deciding which bookkeeper’s rates are right for you, ask yourself some basic questions. Do you see yourself using a bookkeeper just this once, or is this an ongoing service you will need regularly? How regularly?
Think, too, about the burden of work you are outsourcing. For a single project, how many hours would seem reasonable to finish the task? If you did the bookkeeping yourself, how many hours would you set aside?
With a general idea of what you want and need, you’ll have a much easier time deciding which pricing scheme is best for your business.
Client-oriented pricing
This is, by far, the most flexible pricing method because it combines the hourly rate and monthly flat fee models depending on the situation. In most cases, you would discuss your specific operations with your bookkeeper, including length and frequency. You would then agree on a fixed fee or rate that suits you both. It’s great because it allows you to find a suitable price that is very specific to your need. This is the pricing model we use at Martsal and most people really like it because they can be assured they are paying only what is best for their individual situation.
Hourly rate
This model is most effective for people who have a start and end date in mind for their bookkeeping. For example, we provide an hourly rate when we work with clients on very specific time slots. The benefit is that you pay purely for the time the bookkeeper devotes to your business, leaving little room for excess expenditure.
The downside is that if projects end up being extended or takes longer than expected, the hours pile on and end up costing more than a fixed fee. Also, you want to be careful of how much you’re getting billed, because some bookkeepers will exaggerate hours worked to earn a few extra dollars.
Flat Monthly Fee
This pricing scheme is similar in some ways to the hourly rate but involves a fixed price per month. You’ll really like this if you see yourself outsourcing your bookkeeping long-term and can say with confidence there will be something for the bookkeeper to do each month. We use this model with clients who want services on a continuous basis. One thing to consider is that you’ll be paying the same thing, regardless of how much bookkeeping help you may need a certain month. However, most companies also list the specific things that come with a monthly rate, so you can get a pretty good idea of what you are paying for. Martsal also offers some monthly packages for those looking for specific preset services.
“Project” Flat Fee
If you have a single project, some bookkeepers will also offer a flat price for the complete project based on the tasks you need done. Regardless of how long the project ends up taking, your price won’t change. Obviously, this works well when the project ends up taking longer or being more complicated than expected. However, the opposite occurs when the project ends up being much simpler and shorter than anticipated.
For more information out more about our unique client-oriented pricing model at Martsal Consulting, click here.