I'd recommend "value pricing" which has a few elements including using fixed fees and project management. It's harder than hourly billing but much more rewarding. Check out Versage.
The only advice that I would give you is to try to stay flexible. You may get a client who wants to be billed once a week or a month per hour that you have worked on their accounts, whereas another client may want a fixed weekly or monthly amount so that they know what to expect and can plan their budget
I offer fixed rates, and prefer it for a number of reasons. As Alison say's this is one question that is individual and each person on here has a different view of it.
I'm sure it's been said before, but here goes. Your clients will generally want to know the bottom line. They'll ask how much for whatever work they need, you say £15 per hour. Their very next question will be how many hours will it take. They want to know how much exactly they're going to be paying you. I personally decided that fixed price was therefore better.
There's an argument that with fixed fees you can shoot yourself in the foot by underpricing a job but I would suggest that you'll only do that once and you'll learn.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
I say fixed is best, then you have already agreed a total price, then I feel it is easier when it comes to invoicing the client because the client has already said that they are happy with the fixed price.
Also I think it would be difficult to keep track of the hours! sometimes I am distracted maybe the phone may ring, but if it's fixed price you get paid when it's done so if breaks are taken inbetween working this is acceptable, and you get paid when it's done regardless.
I also think that if you are in a fixed price then it is in your interest to complete it as quickly as you can (obviously not too quick, it needs to be done correctly!).
I find that sometimes I have charged maybe a bit less than what I would have done if I knew exactly what was involved, but then you can't fully tell this until you start the work.
Overall I think it has to be fixed pricing! both better for the client and the bookkeeper.
Does the people who say fixed fee is best have a fixed fee same for every client?
I have various clients from ones who are organised with their paperwork to ones who have their paperwork screwed up in a bag in no particular order.
Also have clients who sometimes they are organised with their paperwork others very disorganised.
Because of this I find that hourly rate works out best, the organised ones paying less then the disorganised.
Also with fixed fee this does not take into account major changes in how client operates, if there are changes you may not know this until you start doing that particular periods books, you would then have to change the fixed fee with client, with hourly rate both bookkeeper and client knows where they are at, if a job takes longer then normal because client has changed how they operate all it takes is a conversation with client when you hand them the invoice or if sending invoice an explanation letter saying that it took longer because of x. Normally client will be expecting this to happen if they have made changes, with fixed fee they may try and get away with the extra bookkeeping without increasing the fee.
Slightly different to Lor, I provide my clients with a few simple instuctions on how to prepare their work for me. If they follow these which take a few moments of their time, then I would charge them less. So start with a higher fee and discount it if they do some simple things to help themselves.
You still get the people who say no, I'll pay more so I can chuck everything in a box, thats fine too.
My terms of engagement also state that I have a paragraph dealing with changes in how the client operates. Think of it this way, if you give me a fixed price to build a 10' fence then I say I need a 14' instead I'd expect the price to change. Its the same with bookkeeping, and people understand that.
The views expressed in this post are my own personal (HRA protected) views, and are not representative of any organisation I have any involvement with.
