Bookkeeping Services in Scotland - The Book-keepers Forum (UK)

Fitzpaam · Newbie

Bookkeeping Services in Scotland

kjmcculloch · Guru

Hi there,

My name is Kris. I run KM Bookkeeping Services in Ayrshire. To be honest I'm probably not much further on than yourself if any. I'm finishing off my website, submitted my details to google and some online directories. Got my telephone service setup. I'm looking at having postcards designed to send to small local businesses in the hope of drumming up some business.

In terms of charges, for me it's just a try it and see. I'm assuming around the £10/hr mark. But if I have a few jaws falling open at that I'll revise it.

Fitzpaam · Newbie

Sounds like we're at the same stage - good luck with your business Kris. I'd say try and stay firm with £10 per hour. When you think of what a bookkeeper would cost a company plus the 12.8% national insurance contribution an employer would have to pay on top of that - £10 per hour is a good deal. Of course the thing we both need is the initial business to get our good reputations up and running and take it from there.

Nimac · Senior Member

£10 p/h i personally think is too cheap for the services you will be offering.

By the time you have taken off your expenses etc.... you will not be left with a huge amout to live on, why go self employed if you are going to do this.

I have been dealing with self employed people for years and the one thing they all have in common is the belief in their product/service and the ability to charge for it.

I realise your starting off but i would go in higher than this, sya £12 p/h and after you have gained more experience, increase it.

I charge £15 p/h and my clients are happy to pay that amount. The secret i beleive is to offer additional services such as cashflow forecasting, breakeven analysis etc... and provide them on top of the basic bookkeeping.

Just my thoughts of course, what does anyone else think?

Nigel.

kjmcculloch · Guru

Thanks for your comments Nigel, they will be duly noted.

kjmcculloch · Guru

Just a wee quick addition to the above. I currently work 4 days on and 4 days off. And I'm happy with my salary at the moment.

I choose to charge £10 per hour because that is what I believe the local market is happy to pay, through market research I have done.

I hope to charge a fixed rate in the future, which (as has been discussed in other posts) will allow me to make the best use of my time and hopefully get to a stage where I will be able to earn my current salary doing bookkeeping.

Just curious Nigel, from where do you hail? And do you think that all bookkeepers can charge a standard rate whether in London, Manchester, Dublin or the rural Ayrshire?

Nimac · Senior Member

I am from Northern Ireland.

In terms of charging, i really do believe that it doesn't matter where you live. If a business needs its books completed, then it doesn't matter if it's in rural Ayrshire - nice place by the way - or Manchester, it still needs the same level of expertise etc...

I am a great believer in not selling us bookkeepers short and i think charging too low a rate does this.

I see your point in trying to get established, not easy and i guess price is a good way of getting customers.

Good luck.

kjmcculloch · Guru

Although I respect your views Nigel, I don't agree.

in the same way I would show a plumber or joiner the door if they quoted me the same as they would get in the south of England, I think I need to be realistic and understand the local economy.

However, as a wee fail-safe I don't actually publicise my fees, so to make the change from £10/hr to £12 or £14 isn't difficult as every customer has his or her own price.

Nimac · Senior Member

Ok, fair point but if you charge £10 p/h in Ayrshire as opposed to say £15p/h in London that adds up to an extremley large differential when taken over a whole month of bookkeeping which magnifies any local pricing you may apply.

I come from the line of thinking that to give yourself a decent life style if you are self employed then you have to charge a certain hourly rate otherwise whats the point in going self employed.

I could for instance stay in an accounts job working for an employer earning between £8-10 p/h but if i want to work for myself i have to charge more than this to make it work all the hassle, stress and costs etc....

What do the other bookkeepers on the site thinks?

Nigel.

Wella · Expert

I agree with both points of view

However, living in rural Cornwall, I tend to slightly side with Kris as I have found that the area has its own 'level' when it comes to what can be charged. I currently charge £12.50/ hr but initially discount for new clients, which takes it to £10.50 for three months.
What makes it worse, is that, not only do I charge below national average I have to travel further to meet or work for clients, without additional charges. So realistically my rate is lower than that because I can spend an hour travelling, plus there is the extra cost of transport. Currently I am willing to travel up to 20 miles (each way) and even then I wont reach any of the major cities or towns in the area.
You also have to consider your target market, if you are fortunate to have large businesses in the area, they will find it easier to lose £15 in their costs than the smaller sole trader (my main client base).
On the plus side, my motivation for accepting this is that, I can grab a surf board or get on a Kayak practically any time I want to.

Bill

Terri · Senior Member

I am new to bookkeeping, I have not a lot of previous experience and I have one client at the moment. I am struggling to get enquiries even though my website says that I charge £8 to £10 per hour.

However, now that I have just passed my ICB level 2 computerised exam and I already have my ICB Level 2 Manual, I am going to start charging my hourly rate between £10 and £12 an hour.

I am wondering if my low hourly rate is putting people off as they think that I must not be very qualified to do my job if I am working so cheaply.

I am going to take my prices off my website altogether and see if I can get a few enquiries, even if they are just calling to ask how much I charge per hour, I at least have one foot in the door.

Terri

kjmcculloch · Guru

I think thats a good move Terri. Like you say, at least then you might get that extra few phone calls.

I don't always think it's best to reveal all straight away.

Terri · Senior Member

I'm starting to think that way now Kris. When I was first thinking about starting up, I went to see an accountant who advised me to charge £10 per hour and use it in my advertising as a unique selling point as my rate was competitive but I think that it hasn't worked so time to try a different approach. I guess that being self employed does involve some trial and error and what works for one person might not always work for another

Terri

BobHarper · Guru

Would any of you be interested in contract to Crunchers at £15 an hour?

kjmcculloch · Guru

Hi Bob,

Perhaps you can explain more?

Kris

-- Edited by kjmcculloch on Sunday 23rd of August 2009 09:43:12 PM

-- Edited by kjmcculloch on Sunday 23rd of August 2009 09:44:42 PM

BobHarper · Guru

Kris - where we can't find a partner we will need to work with contractors/employees and I'm wondering if people would work for £15 an hour.

Alison · Senior Member

Hi Bob

I would be interested in working for £15 an hour?

Do you already have someone in the North Bradford area? - Baildon, Shipley, Bingley or Bradford itself. If not please let me know.

Thanks

Alison

steve99.9 · Veteran Member

Hi Bob.

I too would be very interested in working on a sub contract basis If you have the clients in my area.

Unfortunately this is quite close to Alisons home territory at the moment but I am looking to move back to Halifax in the near future so I could do Calderdale, Keighley and even Kirklees.

To Alison, I am Sorry. I am not trying to step on your toes, I realise that you were there first, and I do hope that you can get some work from Bob. Its just that when your starting out at the moment, you have to try for any opportunity you can, and its just co-incidence that we are from the same neck of the woods

Regards

Steve

Terri · Senior Member

I would be interested if you could send some work my way. I could cover areas such as Sheffield, Chesterfield and Worksop.

Terri

Alison · Senior Member

Hi Steve

How are you finding it at the moment? When did you start your business?

I started in August 2006. When I took on my clients I never forsaw the recession hitting so took all types of client on, unfortunately I have lost 1 major client and 2 minor clients since March 09 (luxury goods and services companies) because of the recession.

Alison

steve99.9 · Veteran Member

Hi Alison,

Haven't started as yet, in as far as I have not got any clients!!! I have actually had my own businesses since the early seventies but semi retired in 2004. In the last few years I have been doing commercial loans mainly to small builders and developers. This was quite lucrative at first, but as you can imagine it isn't any longer. After a couple of these loans went bad I had to find a way to fill the (Giant) hole in my income.

This seemed like a good way as I have always "done my own books" So, late last year I took ICB Level 1. This year I have added Level 2 (Comp) Payroll management and Sage Cert level 1 and 2 to my quals. So now all I need are some clients. I have put a few ads in local shops and written to some accountants but as yet - zilch. I think I need to get some flyers out there, so thats me walking the streets for the next however long. Don't worry I won't come to Bingley. I live between Keighley and Skipton at the moment but we want to move back to Halifax so concentrating round there at the moment.

How are you finding things? Tough I imagine. Have you managed to find replacements for your lost clients?

Anyway must go. trying to study for sage 50 Stage 3 at the moment, and write my flyers, and update my website...and..and..and....

Regards

Steve

Marky65 · Guru

Hi Bob

Just getting back to your request, Yes I would be interested in some sub contract work. I am in Plymouth, Devon

Look forward to hearing from you

Regards
Mark

BobHarper · Guru

I'm going to set up a page on our Website for bookkeepers to register.

Marky65 · Guru

Hi Bob

Ok, will keep a watch on your website for developments.

Regards
Mark

Jane · Veteran Member

Hi Bob

Would be interested if you have any work up in the Highlands.

Will you be posting link to your website once you've set up page or do we just keep on checking.

Kind regards
Jane