How to Charge For Your Bookkeeping Services Freelance Rates

Then you are unsure about how much to charge for your services. This is a business advice for accountants and other advisors as well.

When I started my business in 1999 books, did I. Here are some tips on what to charge.

One lesson I learned is that the sooner EVERYONE wants a deal and they think you should, but once you do, they will underestimate your services and consider a permanent discount.

Do not make the mistake of charging too little - Use incentives and bonuses to reward referrals of new customers, rather than lowering your price to every customer. Even a "Kiss of Death" on your rate sheet.

Not guess how much it will cost either. If you need to start other professionals in your field to find and just ask them what price they charge in the area. Ask them if there is a sliding scale and if so, what criteria they use to set variables.

Here is what I seek -

Small business customers would rather pay a flat fee rather than hourly rate. Holders of most of the cost rate per hour, but takes a fixed fee based on the number of transactions to be included, plus $ 50-10 (if the customer does not notice). You also need to calculate these costs in your calculations - Workers Compensation, self-employment tax (10% for the United States), and business insurance.

For basic banking and credit card reconciliation, data entry and set your monthly finances will run approximately 2.5 minutes per item. Any amount of the transaction data entry like "2.5". So, if you have small businesses average of 200 registrations per month, you need a minimum of 2.5 minutes per entry fee.

Experience tells me that some of the entries will take longer and some of the entries will be less, but from the beginning to the end of all entries made balance to 2.5 minutes. At my level of cost, which means that a fixed monthly fee for customers is equal to 2.5 times the number of entries divided by 60 minutes total time rate per hour (2.5 x 200 / 60 x $ 45 = $ 360 per month flat fee).

Not all shareholders are willing to share their cost structure, so do not be afraid to different owners what they cost for the first reference point to ask. You will find that there are ranges in price from $ 16-60 + per hour. Choose one of the tribe that feels like it to cover costs and still hold you responsible as an expert in your field. If you charge $ 16 per hour then you really need to get more experience and / or education to get taken seriously. Accounting Accreditation is one way to do that. Please contact your local chapter of the American Institute of Professional holders for accreditation.

If your customers appear to be concerned about the cost that you would ask them a set of records to their accountant at the end of the year without a problem, propose, and if it would be a fair way to think about your expenses are. If they are still in doubt, you are best advised to help them find someone else.

Advantages of hiring auditors also the fact that full-time employees and labor costs are eliminated, computer hardware and software and additional office and storage for accounting purposes is not necessary.

$ 25-45 is the average cost per hour for a good accountant who knows the business. For a higher hourly rate you pay for an accountant who worked with an accountant. These rates reflect the fact that they work with professionals who supervise their work and a higher level is the symbol of a review by a tax professional business documents before they go out the door to the IRS or CRA. It is worth the extra cost for many customers. For others it is not and people can not be the best client for an experienced keeper.

When you make your bills to your customer invoice, a brief re-write the work you do for them (customers) in the body of your bill to them. There is really no need for all items on the list of services that you add them. You only one line of 2-5 sentences for your customers so they understand what they paid.

TIP: If you have a huge amount on your bill to be presented to them and then try to break it into 2-3 separate invoice in the course of a month. Your customers do you need to do their work, but a huge bill not appreciate at the end of the month without any warning. These conditions lead to ill will and on short-term customers. Longevity is the key to owning and operating an accounting business leading and long.

Invoice description include:

"Accounting services for the month of November, including but not limited to, the following: Banks and credit card reconciliation and reports for the October report, cash receipts journal, cash disbursements journal, general journal entries (for those on the construction method Magazines and General Accounting. construction, trial balance, general ledger places. If you have a payroll service to do then added "preparation of the payroll," "quarterly payroll tax return," etc.

The big picture and some information to help you understand why your client bills the way you do. And why you're worth!

If you perform additional services you choose to leave it as un-billed go ahead and add it to your invoice as a record in the list below that service - for example: a phone call from the IRS for payroll problems 3 hours without charge. ALWAYS say, "Thanks." NEVER ask customers to call with questions about your bill.

Fees for phone consultations and training sessions at a discounted price - unless you want to train your clients for free and that only an end to the precious time you can spend on a new job and customers. Time is money wisely you use your business grow. No nickel and dime customers - fax and copy may not be billed unless they exceed $ 20.00 at the time and cost.

Always bill your customers on a regular basis - the same time each month. Create professional invoices, even if on an Excel spreadsheet. Using the last day of the month as the date of billing guidelines.

Still looking for customers?

- Look through the want ads for people interested in hiring someone 10-15 hours a week. Generally these people are less interested in hiring employees. Give them a call or send your business card and CV and letter explaining why your services are good for them - an overview of the benefits to them and ask for a telephone call to discuss.

- Join a local networking group. I found that the Business Network International (BNI) not only helped me professionally with public speaking and self confidence, but they also gave me a solid reference flow and growing every week of my business and kept me busy. Membership paid for itself in just one week.