As a bookkeeper, it is important to have tools in your tool kit to offer your clients. The more platforms you can work with the more clients you can serve. One common challenge that arises when using bookkeeping software is managing the allocation of its costs efficiently, particularly when dealing with online subscriptions and desktop applications like LedgerDocs. In this blog post, we will highlight a few different strategies for approaching this problem.
Line Items for Software Reimbursement
To account for software costs, consider adding it as a line item in your billing process. This transparent approach enables hourly clients to see a clear breakdown of their monthly bill, revealing how much of their fee is allocated to their tool stack. This fosters transparency, helping clients understand the expenses linked to the tools used for financial management.
Incorporating Costs into Flat Fees
If you work on a flat fee basis, you can choose to incorporate the cost of your client’s software subscriptions into their overall monthly fee. This simplifies billing, consolidating bookkeeping and software fees into one recurring amount. This strategy not only streamlines payments but also provides clients with a predictable billing structure.
Exploring Volume Discounts
Platforms like LedgerDocs and QuickBooks Online provide volume discounts for bookkeepers who are managing several different clients’ accounts. These savings can be leveraged to provide clients with a discounted rate for your preferred platforms. Consider billing clients monthly or annually to cover the full fee, providing flexibility in payment structures.
Letting Clients Pay Directly
Several bookkeepers have shifted towards having clients pay for their software subscriptions directly. This removes the bookkeeper from the billing process and eliminates the need for carrying the subscription costs upfront. Clients, acting as Primary Admins, allow them to gain control over their financial files, fostering autonomy and simplifying any potential financial transitions.
As bookkeepers navigate the challenges of software cost management, there is no one-size-fits-all approach to billing clients. The key lies in finding a strategy that works best for your business model and your client’s preferences. Whichever strategy you choose or if you choose a combination of these strategies, it is important to remember that clear communication is the key to ensuring that your clients are satisfied with the method that you proceed with.