FCCA returning to work needs guidence on bookkeeping fees

FCCA returning to work needs guidence on...

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I am a FCCA returning to work after a career break. I want set up a bookkeeping and payroll service. I feel totally at ease with carrying out the work but feel somewhat nervous and confused about how to charge and how much to charge clients. I am looking for some advise from bookkeepers/firms out there on how they charge for bookkeeping work.

Do you tend to charge a flat hourly rate which would fluctuate every month/quarter or do you tend to charge a flat rate for everymonth.

Also how do you decide how much to charge, is it based on number of transactions, size of company etc.

How do you quote for work when someone approaches you. Do you quote over the phone or have a face to face meeting to review their current books.

Do you ever ask potential clients how much they are currently paying for bookkeeping services and why they are changing or is this a bit cheeky?

I know some of these questions are very basic but after being out of the 'real' world for a few years I just need some pointers in the right direction.

Your help would be greatly appreciated.

Nicola
Nicola Curson

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By sue.hill
22nd Jun 2006 17:47

Some suggestions on fees
I did exactly this for about three years - I tended to go for a fixed fee, as clients liked the certainty of how much would be payable each month, BUT (big but!) - I had a letter of engagement for each client which was VERY specific about what tasks were covered by the fixed fee, and a clause stating that any tasks outside of those agreed would be subject to a separate engagement letter, and priced at £X per hour. The engagement letter also included a clause stating that an annual review of fees would be carried out. Also, in situations where I wasn't absolutely clear how long jobs would take, I would start with a trial period of, say, 3 months, at an agreed rate, and then review the fee charged to make sure that it was fair all round, once the work had actually been experienced. The engagement letter is an extremely useful tool!!

In terms of how much to charge - how long's a piece of string? In the early days where any work is good, I was happy to take on low value jobs. As my workload increased, I could become more picky about jobs, and would deliberately overprice jobs that I was less keen on - hopefully the client will look elsewhere, or I would be financially rewarded for doing those less pleasant jobs. Also, the situation of the client can be a factor - I had a client who was on a very low income, but needed help preparing property accounts (her sole source of income) for her tax return - this didn't take long, and I didn't charge her much - converseley, a client with a Limited Company who wanted everything from book-keeping to statutory accounts and company secretarial services paid a more realistic rate. (Yes, I did have a practising certificate!)

I hope this is of some help.

Good luck.

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By User deleted
13th Jun 2006 18:16

Why not do accounts work?
I have no wish to be rude but as a fellow FCCA you will earn lots more undertaking accounts work than bookkeeping/payroll in my opinion.

Have you considered subcontract accounts prep work for other accountants?

Payroll and bookkeeping is done by alot of unqualifieds which puts downward pressure on fees.

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By AnonymousUser
13th Jun 2006 18:40

depends where you are in the country,
as well as other factors. pour exemple, book-keeping charges can range from £7 per hour to £35 per hour.
As a general rule, London tends to be more expensive.
Also, please consider your clienteles. A listed company would expect to pay more than a small owner managed business.
Also, you can and should ask the potential cligh what they expect to pay or/and what they are currently paying.
If their top dollar is 10 dollars per hour and you want a minimum of 15, then clearly this business is not going to engage your services.
Final piece of advises, remember it is better to err on the higher side rather than the lower side, as if you don't charge enough, you may have some troubles increasing your fees later.
Also, you need to consult the acca concerning your practising sertifikat. Offering serbicces to the general public, you may find this is a requirements.

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By RonnieCSS
13th Jun 2006 17:46

BK charges
I charge a flat hourly rate, slightly reduced for those whose accounts I do at home.

If my client who's just set me up to work from home on the Sage in his office 10 miles away is reading this - the higher rate still applies :o)

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