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Should you pay a fixed or hourly fee for your bookkeeping?

Everyone in California wants cheap bookkeeping Orange County for their business to save on costs. There is always someone cheaper somewhere. However, you need to be very careful when choosing a cheap bookkeeper especially those that claim to do everything involved in bookkeeping at extremely low prices. Today, we will talk about an hourly and fixed fee when it comes to choosing bookkeeping services.

Hourly vs. fixed fee

The hourly rate may appear to be cheap but it may end up being expensive in the long run. Fixed price value billing is gaining popularity as it limits the surprises but some bookkeepers may offer low prices that aren’t sustainable. A lot of bookkeepers request a portion or all of the fees paid upfront through a retainer or deposit. An upfront fee can send signs of expensive though it isn’t initially an additional expense when hiring bookkeeping services.

Hourly

Some bookkeepers will charge an hourly fee for their services which can include a minimum charge. Hourly billing for bookkeeping services is not a recommended billing method in bookkeeping as it provides instability in prices for the customer. Hourly billing in bookkeeping doesn’t provide customer control over what they are buying and doesn’t help to develop a good relationship.

Fixed fee

Most bookkeepers use the fee method of billing. The monthly fee is agreed upon by the bookkeeper and the client in advance. The charge is based on a combination of much per number of transactions in addition to a fixed amount to cover the preparation of financial statements, and a quarterly or monthly meeting with the client to discuss financial results.

Bookkeeping Orange County service provider in California you develop a relationship with, who can provide basic advice and insights can pay off with new opportunities and reduced costs. It is hard to pin down a benchmark for pricing with a lot of possible scenarios.

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