Help on pricing my first “solo” client?

How to Price Your First Solo Client: A Guide for New Bookkeepers

Embarking on the journey of managing your own clients can be both exciting and daunting, especially when it comes to determining your pricing structure. If you’re transitioning from subcontracting work from CPAs and other Bookkeeping professionals to handling your own clientele, you are likely wondering about setting competitive yet fair prices. Here’s a guide based on a scenario with a small S-Corp client on the East Coast, who currently has just one bank account with fewer than 100 transactions per month.

Establishing Your Pricing Framework

Having initially built your experience through platforms like Upwork and referrals, you may have charged lower hourly rates to grow your client base and portfolio. Now, as you focus on expanding your business more seriously, transitioning to flat-rate fees could be a beneficial strategy. Here’s a suggested pricing model tailored for a small business with minimal transactions and payroll needs:

Monthly Expense and Income Tracking
Fee: $200 per month
Scope: Covers up to 100 transactions per month on average, with flexibility to occasionally exceed this limit. If the transaction volume remains above 100 consistently for six months, the pricing will be reassessed.
Financial Report Preparation
Fee: $25 per month
Services Included: Preparation of income statements, balance sheets, and other requested financial documents.
Payroll Processing
Fee: $50 per month
Details: This rate includes processing payroll for up to three employees. Note that monthly service fees for payroll software like Gusto would be covered by the client.
Annual 1099 Preparation and Filing
Fee: $50 per year
Coverage: Includes the preparation and filing for up to 25 vendors or contractors, with billing occurring annually each February.
Quarterly Estimated Tax Filing
Fee: $25 per quarter
Frequency: Billed in April, July, October, and January, ensuring timely tax compliance.

Seeking Guidance for Your Pricing Strategy

When establishing pricing, consider the unique needs of your client, the complexity of their financial activities, and the value you deliver. It’s crucial to ensure your fees reflect not just the time spent but also the expertise you bring to their business. Feedback from experienced professionals in Bookkeeping can also be invaluable, providing you with insights and helping

Pricing your services is a critical aspect of running a successful freelance business, especially as you transition from working through third-party platforms like Upwork to securing your clients directly. Here’s a breakdown of how your pricing structure looks and some advice to ensure both fairness to your client and profitability for you:

Expense/Income Tracking and Account Reconciliation:
Proposed Pricing: $200 per month for up to 100 transactions.
Consideration: This rate seems competitive, especially for a small S-Corp with limited transactions. Make sure you’re clear about what qualifies as a transaction to avoid misunderstandings. The provision to revisit pricing if transactions frequently exceed 100 is wise and shows flexibility while protecting your time investment.
Advice: Evaluate if 100 transactions typically require a significant amount of your time. If the majority of these transactions are straightforward (e.g., versus complex transactions, which could be more time-consuming), this pricing could work well. Tools like QuickBooks or Xero might help streamline this process, allowing you to maintain profitability at this rate.
Financial Reporting Preparation:
Proposed Pricing: $25 per month for reports.
Consideration: Offering reports at this rate is reasonable if you’re generating them using Accounting Software that automates much of the process. Ensure you clarify which reports this fee covers and maintain flexibility for custom reports, which might require additional analysis and time.
Advice: Regularly evaluate the time commitment these reports require and adjust the pricing if necessary. Clearly specify any limits to the complexity or number of reports covered by this fee in your contract.
Payroll Services:
Proposed Pricing: $50 per month for up to 3 employees.
Consideration: Managing payroll involves ensuring compliance with various legal and tax obligations, which can be complex even for just a few employees. Your client covering additional service fees through Gusto is a smart move and helps keep your service cost predictable.
Advice: Ensure that your pricing reflects the intricacies involved in payroll beyond just number crunching — such as submitting accurate tax filings and maintaining records. Monitoring regulatory changes in payroll management is essential to avoid penalties.
1099 Preparation and Filing:
Proposed Pricing: $50 per year for up to 25 vendors.
Consideration: This is fairly

One response

APAdmin

3 March 2025 at 8:46 AM
Pricing your services is a critical aspect of running a successful freelance business, especially as you transition from working through third-party platforms like Upwork to securing your clients directly. Here’s a breakdown of how your pricing structure looks and some advice to ensure both fairness to your client and profitability for you:
1. Expense/Income Tracking and Account Reconciliation:
2. Proposed Pricing: $200 per month for up to 100 transactions.
3. Consideration: This rate seems competitive, especially for a small S-Corp with limited transactions. Make sure you’re clear about what qualifies as a transaction to avoid misunderstandings. The provision to revisit pricing if transactions frequently exceed 100 is wise and shows flexibility while protecting your time investment.
4. Advice: Evaluate if 100 transactions typically require a significant amount of your time. If the majority of these transactions are straightforward (e.g., versus complex transactions, which could be more time-consuming), this pricing could work well. Tools like QuickBooks or Xero might help streamline this process, allowing you to maintain profitability at this rate.
5. Financial Reporting Preparation:
6. Proposed Pricing: $25 per month for reports.
7. Consideration: Offering reports at this rate is reasonable if you’re generating them using Accounting Software that automates much of the process. Ensure you clarify which reports this fee covers and maintain flexibility for custom reports, which might require additional analysis and time.
8. Advice: Regularly evaluate the time commitment these reports require and adjust the pricing if necessary. Clearly specify any limits to the complexity or number of reports covered by this fee in your contract.
9. Payroll Services:
10. Proposed Pricing: $50 per month for up to 3 employees.
11. Consideration: Managing payroll involves ensuring compliance with various legal and tax obligations, which can be complex even for just a few employees. Your client covering additional service fees through Gusto is a smart move and helps keep your service cost predictable.
12. Advice: Ensure that your pricing reflects the intricacies involved in payroll beyond just number crunching — such as submitting accurate tax filings and maintaining records. Monitoring regulatory changes in payroll management is essential to avoid penalties.
13. 1099 Preparation and Filing:
14. Proposed Pricing: $50 per year for up to 25 vendors.
15. Consideration: This is fairly
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