How does other firms charge for bookkeeping?
There are three ways that other firms charge for services: By total expenses, transaction packages, or hourly models.
Example of charging by total expenses: Bench.co
Example of charging by packages: OakTreeOwlBookkeeping.com
Example of hourly pricing: smallbusiness.costhelper.com/bookkeepers.html
Total expenses model: the higher your expenses are each month, the more you pay. If you sell high ticket items, you may be charged from a higher tier even if you’ve only made a few transactions a month.
Transaction package model: you pick a package of between 30 through 300 transactions a month limit. Use enough of the transactions and you’ll save, underuse it and you’ll be overpaying.
Hourly pricing model: this popular model is used in most firms, especially during the initial stages of bringing on a client. But most firms will “round up” their hours, even if it only took them 30 minutes to enter your data.
How does NTV charge for bookkeeping?
At NTV, we believe these models are too convoluted and doesn’t serve clients well ALL the time, through ALL situations. And the higher tier you go, the more you have to pay. You want a plan that is flexible and saves you money.
Which is why we’re proud to offer UNLIMITED bookkeeping with no transaction or account limit. We do everything the other guys do. And even so, our prices are way lower. This is how we’re able to do that:
Stage 1: Account set-up and clean-up fees are priced at $35 an hour. This includes setting up an online QuickBooks account or reconciling an existing one, preparing all income & expense statements for entry, reviewing any existing general ledger entries, converting currencies, and other activities that is not related to entering transactions. In our experience, the range of time this takes is between 4 – 8 hours on average.
Stage 2: Hourly pricing for the long term just isn’t fair. So after set-up and clean-up have been completed, NTV will transition our client to a pay-per-transaction model. Depending on your record keeping practices, you will be billed at a rate of $0.70 or $1.00 per transaction entered into QuickBooks.
How do I qualify for the $0.70 per transaction plan (70 plan)?
You qualify if you meet all of the following criteria:
- Accountant access to bank account or timely delivery of monthly income & expense statements from you to us
- Bank statements are in an excel, .CSV format
- No existing QuickBooks account, or if one exists, it needs to be fully up to date
- If you write checks, it should be done so electronically
If you fit one of the following criteria, we will process your bookkeeping at $1.00 per transaction (100 plan):
- You have an existing QuickBooks file you’re using that isn’t up to date.
- You have international expenses or income that requires currency conversion
- Your record keeping practice is not paperless and you frequently produce scanned copies of statements, sales receipts, cash receipts, invoices, or checks.
Is there a deposit? How do I start?
Yes, there is a $350 deposit to start. Once you select NTV Accountants as your bookkeeper, we’ll send you a list of questions so we can get all the pertinent information to complete your business records profile. This is where we’ll determine if you qualify for the 70 plan, and if you don’t, we can coach you on how to get there or you can start off at the 100 plan and transition to the 70 plan as you become more organized.
After your responses are received and we agree on a plan + start date, we’ll send out a service agreement.
Sign the agreement, pay the deposit, send us your documents and we’ll begin work immediately!
Can you give me a ballpark of what I can expect to pay?
Sure thing! Your first invoice will be for the $350 deposit.
Our average client requires about 6 hours of account set-up and clean-up work on their books. At $35/hour, that comes to $210.
After that, let’s say you have about 100 transactions a month and you need an entire year of catch-up bookkeeping, so that’s 1200 transactions for 12 months. If you do paperless bookkeeping, each transaction will cost $0.70, so this stage will cost $840.
$840 for bookkeeping journal entries
$210 for clean-up work and account set-up
Total: $1050 for 12 months of bookkeeping
Minus the $350 deposit, your second invoice will be billed at $700 after work is complete. Then, going forward, we will continue to process your monthly bookkeeping at a rate of $0.70 a transaction.
What can I expect from NTV Accountants?
We will process your bookkeeping on a monthly basis, with previous month’s entries recorded by the end of the following month
We will prepare 2 reports to be sent to you every quarter: Balance Sheet and Income Statement. More reports can be generated as you need them.
We will be responsive and immediately reach out to you when we are missing information or are unclear about your transaction history.
In conclusion, you can expect quality work and fair prices from San Diego’s premier tax accounting firm!