Don’t believe what they say!
Well it certainly isn’t for sole (accountancy) practitioners. The key is in the name we’re accountants not bookkeepers.
I’m certainly not prepared to work for a ‘bookkeepers’ wage.
I don’t buy into the marketing blurb being peddled by certain providers of bookkeeping software.
I’m probably not alone in reading articles on AWeb and receiving literature by post and email which tells me that I can increase my bookkeeping revenue and profits by being more efficient – yes that’s true of every aspect of work. What I don’t buy is the average monthly fee of bookkeeping clients being £400!!! £400! I don’t have any clients where I charge anywhere near that much for bookkeeping.
£400 a month would equate to say 13 hours of chargeable time (£30 an hour) or say its being charge at £1 per item – 400 bookkeeping transactions a month – and £1 an item is pushing it if you’re using cloud software.
Oh and £30 an hour is really pushing it in my opinion especially when most freelance bookkeepers will do the work for £12 - £20 per hour.
No don’t buy it.
Where it is of value is in freeing up more of my time so I can concentrate on higher value work – accounts prep, tax returns, management accounts, forecast, budgets etc.
It’s also a necessary evil (as is payroll). There’s not a great deal of (if any) profit in it but by offering it as part of a complete package to prospective clients it can lead to far higher value work – such as R&D tax credits – now don’t get me started on that subject…
…all smoke and mirrors…
About Kent accountant
Chartered Accountant based in Kent.
After leaving practice very soon after qualifying, swearing never to return, in 2011 I did exactly that.
Now a sole practitioner and loving it, business growing rapidly and looking forward to the future as my own boss.