$100 a Month Bookkeeping Services, You Get What You Pay For

Over the last month or so, several people have called CPA for Small Business to ask if we would be able to perform all of their bookkeeping activities for $100 a month. They wanted to know if we could perform the data entry, close the month out, prepare a profit and loss statement, as well as prepare all necessary tax returns (sales tax, payroll tax, state unemployment tax, etc.) for this price.

My answer was that I do offer clients flat rates for monthly bookkeeping services, but that the flat rates are based on the time involved in providing the services. In each conversation, I said that I couldn’t commit to $100 a month charge without understanding the volume of work that would be involved. If they had approximately $100 worth of work a month, I would be glad to commit to a flat $100 a month charge.

Each of these callers said:

1. They were currently using a $100 a month bookkeeping service,
2. They were dissatisfied with the service they were receiving from the $100 a month bookkeeping service, and
3. They were looking for someone who could provide them with better and more responsive service for the same price.

I believe that this is a classic case of getting what you pay for.

I really don’t see how a $100/month bookkeeping service can provide all small business owners with the information they need to run their companies. Granted, I have clients who have $100 or less a month of work. But my experience is that this is the exception instead of the rule.

I was originally going to rant about this subject, but I realized that I had used one of the bookkeeping services that is offering $100 a month bookkeeping in Nashville. Several years ago, I was the financial manager of a company that used one of these services for a subsidiary. I was very satisfied with the service they provided. At the time, they charged per hour for the work they performed and the monthly charge was usually greater than $100 each month.

I believe they are offering the $100 a month in order to compete for and retain clients in Middle Tennessee. I don’t believe that bookkeeping services are a commodity, but the $100 a month offerings may indicate that some think it is.

Fortunately, CPA for Small Business offers a greater and different level of service than bookkeeping services can. My clients appreciate the level of service and financial management guidance they receive from CPA for Small Business.