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Bookkeeping Rates by the Number of Bank Accounts  

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 Manjit
(@Manjit)
Joined: 1 month ago
Posts: 4
08/02/2020 12:26 pm  

Hi everyone,

I have noticed from other bookkeepers' web sites that lots of bookkeepers charge by the number of bank accounts, CC accounts and charge accounts. Needless to say, the rate varies for each bookkeeper.  have 2 questions.

1st question......how do you determine the number of transactions per statement if the prospect is not willing to show the statement at the time of proposal? Do any of you charge by the tier rate system for transactions? For example, if the statement has 10-100 transactions per month, then the rate will be X amount of dollars and so on? Is anyone willing to share their rates if you charge them bank account?

2nd question....do any of you charge by the number of transactions regardless of the number of bank and CC accounts the prospect has? Again, is anyone willing to share per transaction rate?

If it matters, I live in Potomac Falls, VA. It is part Washington DC metro area.

Any help will be appreciated.

Thanks in advance.

Manjit Sahai

 

 


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(@casey-4)
Joined: 5 months ago
Posts: 50
09/02/2020 10:49 pm  

I wouldn't charge by the number accounts.  you might have 10 accounts, with only 3 transactions each, or one account with 500 transactions....  You can charge hourly for 3 months, to get an average, then continue or work out a monthly Value added pricing table. 


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 Manjit
(@Manjit)
Joined: 1 month ago
Posts: 4
09/02/2020 10:58 pm  

Thanks a lot, Casey. I really appreciate it.


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(@njoki)
Joined: 5 months ago
Posts: 6
12/02/2020 4:15 pm  
Posted by: @Manjit

Hi everyone,

I have noticed from other bookkeepers' web sites that lots of bookkeepers charge by the number of bank accounts, CC accounts and charge accounts. Needless to say, the rate varies for each bookkeeper.  have 2 questions.

1st question......how do you determine the number of transactions per statement if the prospect is not willing to show the statement at the time of proposal? Do any of you charge by the tier rate system for transactions? For example, if the statement has 10-100 transactions per month, then the rate will be X amount of dollars and so on? Is anyone willing to share their rates if you charge them bank account?

2nd question....do any of you charge by the number of transactions regardless of the number of bank and CC accounts the prospect has? Again, is anyone willing to share per transaction rate?

If it matters, I live in Potomac Falls, VA. It is part Washington DC metro area.

Any help will be appreciated.

Thanks in advance.

Manjit Sahai

 

 

I am in the same predicament as well. I have a client who would not let me see his bank activity until we sign a contract. What Casey explained above is absolutely true. So what I decided to include in my contract is that the fee is based on "simple" bank rec activity and rates are subject to change based on the complexity of the work. That way, there is room to negotiate and amount changes. However, I also like Casey's approach of charging hourly for the first three months just to kinda get a feel for it, then you will know what to charge.


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(@casey-4)
Joined: 5 months ago
Posts: 50
12/02/2020 4:58 pm  

simply explain to your potential client, that you can NOT give a rate without seeing the BS accounts!  If they don't want to show you, you don't need them.  If you called a roofer to give you an estimate, and didn't give them any info, like square footage, or peaks and valleys of your roof, would you expect them to be able to give you an estimate?  Nope, they would have to come out and look at your roof, to give you an accurate estimate.  

Clients often don't understand some of the complexities of accounting.   they may think with only a few transactions in each statement, that it shouldn't take much.  What they don't see, is that if there is a ton of them, and lots of transfers between them, and co-mingling of funds that shouldn't be, that it can take extra time.  Sometimes clients just plain lie!

Don't estimate your roofing job, without the info!  There are plenty of clients who are willing to help you, help them!


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(@njoki)
Joined: 5 months ago
Posts: 6
12/02/2020 5:02 pm  

@casey-4

Thank you for giving that roofer example, never even crossed my mind. I am definitely going to change how I operate now.


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(@casey-4)
Joined: 5 months ago
Posts: 50
12/02/2020 7:08 pm  

Happy the roof example helped!

Keep in mind too, that often clients don't understand that liability accounts, loans, credit cards, line of credit, etc, are ALL BS accounts that have to re reconciled.  What if a client had one checking account, and 10 credit cards, 2 lines of credits, and a vehicle loan.....  You now have 13 accounts to reconcile, and they tell you they only have 1 bank account!  They often don't understand what needs to be done, and that is why they are contacting you for help!


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(@njoki)
Joined: 5 months ago
Posts: 6
12/02/2020 7:48 pm  

@casey-4 Yes,  I have a questionnaire where I ask how many bank accts they have, CC etc.

 


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