How Much Do Accountants Charge? Averages & How to Set Prices

These include running payroll, preparing your business to file taxes and handling invoices and bills. Some online bookkeeping services, like Bookkeeper360, consider these add-on services. Upwork lists the average rate for bookkeeping services as $43 per hour. But you’ll find bookkeepers there who charge anywhere from that amount to $80 or more.

Your Experience and Expertise

In this case, outsourced accountancy might be ideal for your situation. Considering the qualified help they provide, outsourcing to a freelance bookkeeper might be very affordable. However, the actual price of a bookkeeping solution will vary depending on certain factors, which we’ll talk about later.

The key is understanding what you’re paying for, the kind of support your team needs, and how your business is expected to grow. Timelines for implementation vary widely, but many organizations (when guided by a helpful software partner) complete the process within a few months. Even a simple mistake from your own organization (like a missed time punch or incorrect wage entry) will be your responsibility to resolve, regardless of who is processing payroll. Outsourced payroll providers often promise error-free processing — but a quick look at their user reviews tells a different story. The real question isn’t whether errors will happen (they always do).

• Gain the confidence that comes with well-organized, consistently updated financials.
• You’ll want to get a full-service accounting agency that offers services like the ones mentioned above.
• A full-time accountant takes care of the day-to-day accounting duties of your office.
• You’re either going to be paid an hourly rate or a salary.
• However, it can also be unpredictable, especially during busy periods or if the company faces complex financial issues.

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You also have to account for the costs your business incurs more than your revenue for it to be profitable. I grew up in South Texas, I started my journey at H&R Block, I fell in love with tax compliance with individuals and small businesses specializing in working in tax research. I graduated Summa Cum Laude from A&M Corpus Christi in 2022. I’m currently working on obtaining my CPA license here in Minnesota. I look forward to building on the experience I’ve obtained, my desire to learn and improve is one of my strongest characteristics. Investing in quality bookkeeping sets your business up for long-term financial success.

Choosing the Right Pricing Model

This also gives them control during the negotiation process.” However, don’t compete solely on pricing as it’s a race to the bottom, where everyone sacrifices profit margins. Instead, focus on differentiating your services and highlighting the unique value you bring to the table. Understanding and catering to these industry-specific bookkeeping and payroll services at a fixed price complexities allows you to justify a higher price for your specialized knowledge and the value you bring to the client.

Focus on Value, Not Time

Bookkeepers charge their clients based on a variety of factors, such as experience, client size, scope of work, industry rates, location, etc. The bookkeeping fee structure can be different, depending on whether the bookkeeper works hourly, charges a fixed rate, or is project-to-project. The monthly average cost of outsourcing bookkeeping services starts at about $400 for very basic payroll administration for a small business, rising to around $900 or more. But, the rates for more complicated accounting can start at $2,500 and increase to at least $5,000/month depending on your requirements.

Bookkeeping Price Packages: Choosing the Best Option for Your Business

Ian discussers the phases of transitioning to value pricing (setup, implementation, and execution) and walks you through the process in ten proven steps. There is a fine line between overcharging and undercharging, but the sweet spot does exist and you’ll know when you find it, because your clients will be happy, and so will you. 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.

This person would validate time data, file taxes, review GL data for accuracy, etc. You’ll likely also need an HR manager ($80k–$100k), and potentially a systems coordinator ($70k–$90k) to coordinate integrations and new workflows. According to a 2022 Ernst & Young survey, 1 in 5 payroll cycles contains errors — each costing an average of $291. For a company running bi-weekly payroll, that adds up to at least $1,500 per year in avoidable penalties. But the cost of payroll compliance goes far beyond occasional errors. In the U.S., some companies have faced penalties as high as $2.4 million for failing to comply with overtime laws.

Payroll Management

• Get free guides, articles, tools and calculators to help you navigate the financial side of your business with ease.
• For example, in Massachusetts, in-house bookkeepers earn 20% more than the national average, whereas in Kentucky, they earn 22% less than the national average.
• Control over error resolution is one of the most overlooked benefits of in-house payroll software.
• Plus, with software, you own the platform and your workflows.
• Whether you’re a bookkeeper or an accountant, it is best to go with software that does all the work for you.
• Pilot aims to serve startups with niche services, like help claiming the research and development tax credit.

With this plan, you get everything in the Corporation plan, plus priority support, bookkeeping, and financial reports. Their accountants, fractional CFOs, and tax specialists focus on building your business a strong financial foundation. They boast thousands of clients running startups, from those with two founders to hundreds of team members. Bench is focused on helping small business owners to save time and money by taking over bookkeeping and income tax work so they can focus their efforts on the growth of their businesses. For example, a mature business with investors might need to prepare quarterly earnings reports on top of completing basic bookkeeping tasks. Additionally, larger small businesses will probably have more transactions to categorize and more accounts to reconcile.

This enables you and your Bench team to work together seamlessly from the start. Join over 35,000 US-based business owners who have streamlined their finances and have grown their businesses with Bench. Our intuitive software automates the busywork with powerful tools and features designed to help you simplify your financial management and make informed business decisions. Studies show that if given three options, consumers are 66% more likely to choose the middle tier.