![]() Each bank account will take you significantly more time because you will have to look up the statements individually and reconcile them. One thing you need to be aware of is how many bank accounts your client has. However, it is true that the bigger the account is and the more transactions they have means the more time it’s going to take you. What is taking the most time is being aware of their finances, organizing things, and pulling reports. ![]() The actual inputting of transactions isn’t what is taking the most time. This way of charging has changed quite a bit now that we have QuickBooks Online. If you’re interested to learn more, Google it, and I’m sure a plethora of information will show up. To be honest, I’ve never done it that way, so I’m not as familiar with what the rates would be for this type of pricing. In the past, it was popular for bookkeepers to charge per transaction. This initial meeting is helpful before you commit to a price. You’ll be able to gauge how much time you think it will take to do their books each month. In the consultation, you can take a look at their bank account, see how many transactions they have, and see how complex everything is. This gives them an opportunity to let the client know just how much they will need to charge to take over their bookkeeping. Many bookkeepers charge their clients for initial consultations because it gives them a chance to look at the books. Why Would You Charge for an Initial Consult? As a contractor, you’ll be doing the work quicker because you won’t be dealing with all the office management, so it’s actually better for them to hire you part time than it is to hire a full-time employee. This would be for the basic bookkeeping, reconciling, and bank accounts.įor clients with more than $1 million in revenue, it would be good to look at how much they would pay a full-time bookkeeper, sitting in their office, working 40 hours a week. You can categorize your clients into small, medium, and large based on the amount of time you spend on their bookkeeping each month.įor example, a client with about $500k in revenue, she would charge $650 a month as a bookkeeper. What is the Difference Between Small, Medium, and Large Clients? This will be the monthly rate you can present to your client.ĭon’t forget to let your client know that moving from hourly to a fixed rate is for their benefit too because they will now know exactly what they are spending on bookkeeping each month and can budget accordingly. How do you calculate the rate? Take your hourly rate times the amount of time you believe it is taking you each month and add a little more on top of that for added expenses. Are you covering their QuickBooks subscription? Will you need equipment updates on occasion? One thing to note as you’re deciding on a fixed rate is to think about the expenses to keep their books. By then you will have figured out just how long it will take on a monthly basis to keep their books current. It will be more work upfront, so you can bill more upfront.Ī few months down the road, once you’ve immersed yourself into their business, have their books organized, and have a steady flow, you can switch your client to a fixed monthly rate. You may be helping them play catch-up to get organized not only in the current year, but also in previous years. Starting with an hourly rate with a new client is beneficial because usually it will take more time to get their books set up, as they could have been quite a mess before you took them on. Many times you’ll be discovering things about the business as you get to know your client, and you may even find some issues your client didn’t know were there. It’s really hard to figure out what to charge someone without actually doing the work and finding out how much time your client’s account will take you each month. What I recommend when you’re starting out is to begin with your hourly rate and transition your client into a fixed monthly rate. ![]() In an ideal world, I’d have a handful of clients, I’d work two days a week, and I would have them pay me a set amount up front with automatic payments so we both know what to expect each month. Right now my goal is to have all my clients on a fixed-rate pricing scale.
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