How would you price for cloud accounting

I have a client who wants to convert to a cloud based package but I'm not sure how to charge 4 this

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Has anyone you setup a cloud based accounting system for a client? How did you calculate your fees? Did you charge hourly or a fixed fee? How did you calculate your fixed fee?

I've setup my own companies systems but I'm fielding more and more enquiries of this nature due to my experience.  Any help and assistance would be greatly appreciated.

Replies (8)

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By Bacc
12th Feb 2018 15:09

Well it really does depend upon what you are offering. I have had one client make quite a mess of Xero which I am slowly rectifying (as I am discovering issues) and he has to pay each time I find things. All of my clients on Xero I check more or less everyday to make sure it all looks ok and no problems, this is included within their fee. For the clients I do bookkeeping for it is included within their service package but the remaining clients are a fixed fee and decided upon when I see what they are doing with their package.

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By ireallyshouldknowthisbut
12th Feb 2018 16:30

Personally I estimate how long it will take, quote the client a fixed fee, and they say "yes" or "no", or we negotiate a bit about how much input they want.

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Replying to ireallyshouldknowthisbut:
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By pb2875
12th Feb 2018 16:49

ireallyshouldknowthisbut wrote:

Personally I estimate how long it will take, quote the client a fixed fee, and they say "yes" or "no", or we negotiate a bit about how much input they want.

Thanks for the info!

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Man of Kent
By Kent accountant
12th Feb 2018 17:28

WTF! You're supposed to be a cloud accounting specialist!

This work is your bread and butter why don't you know how to price it?!

Oh, hang on, I see...

...you're a so called cloud accounting specialist who has no experience...

...you'll go far...

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Replying to Kent accountant:
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By pb2875
12th Feb 2018 17:42

I know how cloud accounting systems work and hold certification with many of the leading providers and work with clients on the migration of data and ongoing support but never been asked to implement a system from scratch.

What is wrong with asking for a little bit of advise from others. No need to be so rude!

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Man of Kent
By Kent accountant
12th Feb 2018 17:55

"Implement a system from scratch"

What does that mean? Are you designing and writing the software for a client?

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By andy.partridge
12th Feb 2018 18:26

Friend, you are getting a lot of stick from a mutually supportive community (ahem!).

You will already know the pros and cons of fixed fee versus hourly rate, but I sense it is a fixed fee you want to provide.

Firstly you need to be able to have a stab at how long it is going to take you. That can only come by communicating with the client, laying out the scope of the work and your mutual obligations.

Secondly you will want to think about your desirable 'rate' and quote a fixed fee on the basis of estimate time x hourly rate. Not rocket science.

If your client doesn't think it's worth it, have in mind a rate that below which it's not worth you getting out of bed for in the morning. Negotiate between the two.

Of course, the more expert you are in your field, the higher the fee you can command, but the demand for an 'expert' will be less and suitable clients harder to find.

If you don't like this answer then I don't know what your question is.

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By marks
12th Feb 2018 23:05

We have a 3 package option for clients wanting to set up on Xero.

Basic package includes; setting up the basics on Xero, pulling across their data and bringing across opening balances

Middle package includes; all in basic package plus bring across customers and supplier details and 1/2 bespoke training plus 3 month ongoing support.

Top package includes; all in middle package except full days training rather than 1/2 day, 6 month ongoing support, quarterly review over first year to identify any issues in bookkeeping, credit control advice, setting up bank feeds.

We have delivered about a dozen packages so far and all except one went for the top package which is spread over 12 months at £129 + VAT per month.

In my experience all comes down to how you explain the value of what can do and the value you can provide. We use "pricing in the cloud" by Mark Wickersham to explain the packages of our cloud transition service.

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