Hi I am an avid reader of this forum and have found it really useful, so here goes with my first posting. Having recently set up on my own, I am arranging to see my first prospective client, a full-time childminder who used to look after my son many years ago. Please could someone advise me on how to charge. I have read different items on the forum about pricing by hourly rate or by job. I am ICB qualified to Level 2 Manual and to Level 3 Computerised. I appreciate that hourly rates will differ dependant on region and experience - I am in Somerset. Is there a method to pricing a job when you have not actually done it in 'real life'? I would really appreciate some advice or is there someone who could mentor me for a little while. Thank you for your time. Kathy
I prefer to charge by the hour, although I do have a few clients on fixed rates. You are correct there are soooo many different methods for calculating a fee. I tend to adopt the approach that for the first month I will charge by the hour depending on how long it takes. After that if the client want's me to fix a fee I will. If you look around the web you should find local bookkeepers with websites quoting fees based on the clients turnover and/or number of transactions. This should give you a ball park figure for your local area.
As Wendy states, there are sooooo many different methods for calculating a fee!
For me, I know at what rate / speed I work at. When first looking at a clients books I will take note at how well or poor their previous arrangment has been, what is required to get things up to date etc., Then work out the volume of transactions that will need processing once everything is up to date, I can then roughly guess how many hours are required and advise if they need a weekly, monthly or quarterly service.
Its really a case of trial and error. I know my first couple of clients got a really good deal, as I did not realistically figure out the amount of work necessary !
