199 ⎸ [Q&A] Handling Clients, Cash vs Accrual, Inventory, and Solo Bookkeeper Vacation Planning

Hey ambitious bookkeepers!

Are you struggling with how to price your bookkeeping services? You're not alone! In our April Live Q&A session, one of our community members shared that she received pricing advice ranging from $25 to $200 per hour for the same bookkeeping setup. Talk about confusing!

Let's break down this pricing dilemma and give you some actionable strategies to price your services confidently, even if you're just starting out.

Listen here or on your favorite podcast player, or watch the video version on YouTube >>

Now let's dive into some highlights!

Why There's Such a Huge Range in Bookkeeping Pricing

When you ask other bookkeepers what they charge, you'll get wildly different answers. Why? Because pricing depends on:

1. Individual confidence levels - Some bookkeepers haven't yet recognized their true value
2. Market differences - What works in NYC won't work in rural Nebraska
3. Client complexity - A single-location retail store needs different service than a five-location commercial property with years of catch-up work

How to Price Your First Bookkeeping Setups

If you're setting up books for a new client, here's my approach:

For Complete Beginners:

• Start with an hourly rate that feels sustainable but still reflects your value
• Add 20-30% to your desired hourly rate to account for business overhead
• Practice saying your price out loud until it feels comfortable (a little discomfort is normal!)

For Setup Projects:

Consider breaking your pricing into components:

• Initial account setup (software connection, chart of accounts)
• Cleanup work (if going back in time to recreate transactions)
• Training sessions (if the client plans to take over)
• 30 days of support post-setup

One of our community members mentioned a client with 5 commercial properties, 150 transactions per location monthly, and 3 years of incomplete books. This isn't just "setup" - this is substantial cleanup work!

For complex setups like this, you might create tiered pricing:

• Basic setup: $X
• Setup + 1 year cleanup: $Y
• Setup + 3 years cleanup: $Z

Monthly Bookkeeping vs. Annual Cleanup Pricing

Here's a common objection you might face: "Why should I pay $800 monthly when annual cleanup only costs $3,000?"

The answer: Because cleanup isn't just about the bookkeeping work - it's about lost opportunities throughout the year!

When clients only get their books cleaned up annually, they:

• Miss tax planning opportunities
• Can't make strategic financial decisions during the year
• Risk fraud going undetected
• Lose peace of mind about their financial position

Pro Tip: Price your annual cleanup services HIGHER than 12 months of monthly service. This creates a financial incentive for ongoing work and reflects the true value of regular financial insights.

Taking a Break from Your Bookkeeping Business

What happens when YOU need a break? As solo bookkeepers, this question becomes crucial whether you're planning a vacation, sabbatical, or dealing with a personal situation.

Here's your contingency plan:

1. Document your processes thoroughly
2. Communicate early with clients about your planned absence
3. Find a qualified contractor to step in temporarily (our community is full of talented professionals!)
4. Set clear expectations about different communication patterns during your absence

The benefit? Beyond getting a break, you might discover that you enjoy not doing all the work yourself. This could be your first step toward becoming the true CEO of your bookkeeping business rather than doing all the technical work.

Adding Value Beyond Basic Bookkeeping

Remember that your value isn't just in transaction entry. Create meaningful deliverables for your clients:

• Bullet-pointed summaries of key financial metrics
• Trend analyses highlighting areas of concern or opportunity
• Strategic insights based on their numbers

Want to learn more about creating valuable deliverables? Check out my podcast episode "Crafting Deliverables That Matter" or join us in Elevate, where we dive deep into advisory services for bookkeepers.

Final Thoughts

Pricing your bookkeeping services confidently is about understanding the true value you provide. It's not just about the hours worked - it's about the financial clarity and peace of mind you create for your clients.

Remember: If you're comfortable with your price when you first say it out loud, you're probably undercharging!

Ready to level up your bookkeeping business? Make sure you're subscribed to our email list at ambitiousbookkeeper.com/subscribe for more insights, upcoming events, and resources to help you grow.

Connect with The Ambitious Bookkeeper®

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For experienced bookkeepers & accountants:

Learn how to start your bookkeeping business in The Bookkeeping Business Accelerator® >>

Grab my FREE Start your Bookkeeping Biz Checklist >>

Grab my FREE New Client Onboarding Templates >>

For new bookkeepers:

Learn the fundamental accounting skills in Katie Ferro's Become a Bookkeeper >>

For online course creators:

Become a client at my firm, Of Course Financial >>

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