It’s time for us to have the talk…how to charge for your bookkeeping services.
Pricing your offers is more than just picking a number that feels good, you have to be strategic so that you don’t experience burnout and can scale easily.
Two main pricing options dominate the bookkeeping world: hourly pricing and monthly retainers. Both have their pros, but the key is knowing when each one makes sense (and when it doesn’t).
Let’s break down how to price your online bookkeeping business.
⏰ Hourly Pricing: A Solid Way to Start Out (but not stick with forever)
When you’re just getting started with your new bookkeeping business, you’re learning a lot about your client’s needs, what types of services you enjoy, how long things take to complete, etc.
This is the time to charge by the hour.
Here’s why:
- You’re still figuring out how long it takes you to do certain tasks, you do not want to undercharge for the time you’re putting in.
- Different industries = different bookkeeping needs. Hourly gives you flexibility as you learn what’s involved for each type of client’s industry.
- Clean-up work is unpredictable—some books are a hot mess express, and hourly ensures you’re getting paid fairly for your time.
BUT — hourly pricing isn’t a long-term strategy. Why? Because as you get better and faster, you’ll start making less money for the same work. Yep, you’re literally punishing yourself for becoming more efficient. Don’t self-sabotage your success!
🏦 Monthly Retainers: Get Paid Like the Pro You Are!
Once you’ve got your systems and processes locked down then you’re ready to charge the big bucks!
Efficiency = More $$$
With a retainer model, you’re not stuck tracking every minute you work. Instead, your clients pay a set monthly fee for your expertise, not your time. So, if it takes you 4 hours this month instead of 10? You’re still paid the same.
Consistency for Clients (and you!)
Your clients love knowing exactly what they’ll pay each month—no surprises, no awkward convos about time tracking. Plus, you’ll have a steady stream of income coming in.
Scalability for Your Business
Retainers let you work smarter, not harder. You can take on more clients without burning out because you’re not obsessing over hours worked.
When should you make the switch?
Ask yourself:
- Do I have a solid understanding of how long my typical monthly work takes for “x” client?
- Do I have processes in place, so that I can work faster without sacrificing quality?
- Am I tired of tracking every freaking second of my day?
If you’re nodding your head, it’s time to switch it up!
⚡️ Pro Tips for Setting Your Retainer Rates
Alright now you’re ready to do the damn thing, let’s make sure you’re making an income that reflects the hard work you’re doing!
- Calculate Your Hourly Rate: Even if you’re not charging hourly anymore, you need to know your baseline. What’s your ideal income divided by the hours you’re willing to work?
- Factor in Your Expertise: You’re not just charging for time; you’re charging for the years of knowledge you bring to the table.
- Consider Industry-Specific Needs: Some industries (looking at you, e-commerce) are more complex than others. Adjust your rates accordingly.
- Build in Buffer Time: Give yourself room for unexpected tasks or client questions without cutting into your profit.
- Built-In Overhead: Don’t forget about your monthly expenses like software, client communication tools, VA, etc that eat away at your profit add some cushion to your rates to cover these costs.
Let’s Recap ⤵
Hourly pricing has its place, especially when you’re just starting out or tackling messy books. But once you’re in the groove, switching to a retainer model is ideal.
You’ll save time, make more money, and, honestly, have fewer headaches.
Ready to ditch hourly pricing and embrace the retainer life?
Need help with pricing or scaling your bookkeeping biz?
Join The Studio, my private community for bookkeepers who want to grow their business without the guesswork. We talk strategy, pricing, and everything in between. It’s like having your own hype squad of bookkeeping besties.
Let’s do this!
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