How Much Should a Bookkeeper Charge?
Wherever I look I see this same question. How much should I charge for....?
I've even found a whole Facebook group set up just to share prices. It's full of questions like "How much should I charge for £40k turnover with 10 invoices?"
While everyone has an opinion on what the "going rate" is, it's very difficult to really pin down what a bookkeeper should charge in certain circumstances. Every bookkeeper is unique and every client is unique. We all see value in very different ways. Even with commodities, it varies. What I'd pay for a new pair of jeans might be totally different to what you'd pay.
Once you take that to services it gets even less clear.
I've long since suggested that bookkeepers should earn the equivalent of £35 per hour, plus. Though I've also been saying for years we shouldn't charge hourly rates or the equivalent. No wonder this is all so confusing.
I, and others, have developed software to help you. I've fed in the figures that I'd charge, but that's not to say that you'd be happy to charge that. Or you might look at my figures and think they're way too low.
So while I can't give you the absolute answer to what you should charge your clients, I can give you some pointers.
The number one rule about pricing is that you need to be comfortable with it. If you're not happy charging the amount that any piece of software or system comes up with then you'll never be able to sell that to the client. Unless you can confidently deliver the quote and truly believe in the value you offer, the client won't either.
The second point is that you can't always get from where you are to where you want to be in one step. If your use to charging clients £60 per month for their service you won't be able to go from that to £200 a month in one go. That's not to say you can't get there though.
The benefit of using a menu is that you can let the client choose the service they're comfortable with. Every time you get a yes from a prospect, increase the price a bit before you quote for the next one. Let your prices grow as your confidence does. A little at a time is all you need.
If you've skipped straight to the end to see how much you should charge your clients, it's £45.
Join the exclusive community for bookkeepers for just £1.59
Get your account today with instant access to The Bookkeepers Alliance community. It's overflowing with loads of valuable practice improvement content that will help you to develop the practice of your dreams.