New Bookkeeper for hire
Please bear with me...I will be meeting with my first client next week. I was wondering if you charge by the hour or item? How do you figure out your pricing? Do you charge for phone calls too? (O: Probably all these things have all been addressed already. Maybe someone could point me to a master list?
Any ideas or suggestions for this newbie would be appreciated. I will be pursuing the CB designation. I do have a degree in accounting and business already and a few thousand hours of bookkeeping experience.
I charge what I feel my time is worth. Charging by the hour only makes clients reluctant to communicate with you. Experience and competition dictates. How much is it worth to you to perform the work? Some clients think I'm expensive and some think I'm cheap.
Robert Dunkel, EA
I use a bit of a hybrid method, some tasks are flat rate, and others are hourly. I have not had any issue with my clients not communicating with me, because of my hourly charge. That may just be the area I live in. If it is a short phone call or email, something I can answer in less than 5 minutes, I typically don't charge. If someone wants to schedule a call, to go over something, then I charge my hourly rate.
All of this works for me and my area, but others maybe not.
To be more specific, you need to detail what exactly the bookkeeper is required to do? Most work on an hourly rate, so if you are an individual carpenter that subcontracts to one builder and you have 4 invoices a month and a handful of expenses your bookkeeping services will cost very little. On the other hand, if you have are a company with 60 employees, which pays payroll tax, super, etc. and the bookkeeper have to reconcile 400 bank transactions each month, prepare 100 invoices, chase up trade debtors, etc. your bookkeeping costs would be significantly higher. Also it is worth paying a premium hourly rate for a good bookkeeper as it will ultimately cost you much less in accounting fees at the end of the year as opposed to a bad bookkeeper whose work the accountant has to completely redo at thè end of the year!
I know the answer has not put you any closer to what you are hoping to receive as an answer, but I hope it has given you some things to consider when selecting a bookkeeper! Good luck!