I have a potential new client that I am considering taking on the monthly bookkeeping.
They have an accountant already who at present does the bookkeeping but they think he is a bit expensive at £100 per month. They want me to do it for £50.
The business is a dental laboratory, they have an invoicing system which they use for the sales invoices and receipts and that seems straighforward,
Their expenses are mainly materials, rent, wages, meals with dentists, petrol and postage, but are just shoved in a wallet mixed in with personal stuff by the looks of things, so this could be the time consuming bit I think.
Their 6 months results to December 2010 showed turnover of £60k and profit of £20K.
I am thinking they are being a bit cheeky asking me to do it for £50 as I feel that after I have deducted the cost of my software, travel, admin I would be getting next to nothing.
Am I deluded? Is this just a sign of the times?
Anyway back to the point. Do I have to write to the client to get professional clearance, even though the Accountant is still retaining the client and continuing to do their year end accounts, tax and payroll?
Or is it sufficient for me just to ask the client to get a copy of the opening trial balance and just take it from there?
Does anyone know where I can get a good professional clearance letter template for future use?
You should ask your client for permission to contact the accountant, and then write to the accountant seeking clearance. You will need to work closely together and starting on the right foot is vital.
Would agree you need to get professional clearance for the bookkeeping work.
£600 a year for a business with turnover of £120k and profit of £40k (if the 6 months results are extrapolated over a year) seems cheap but it really depends on the work that is involved and how long it takes you. If it only takes you an hour or two to do it is worthwhile but if takes 5+ hours then you really have to wonder if you are better not doing it.
Thanks for your comments. I will definitely be seeking professional clearance.
I was considering not taking on the work so I phoned the client and told him that given the state of the records just now I would be needing to spend longer than a few hours which is all I would have, otherwise I would not be covering my costs.
He was understanding and we agreed that if I could come in and give his wife a bit of training on keeping the records in better order (at a fee) and she did this, then I would do it for the £50 per month. He said he will speak to her tonight and we will go from there.
The only other issue is I will be taking on the bookkeeping 7 months into the year and the Accountants use sage (I don't as I can't afford it!) so I will not be able to view the audit trail to see where things are posted to.
Thanks for your comments. I will definitely be seeking professional clearance.
I was considering not taking on the work so I phoned the client and told him that given the state of the records just now I would be needing to spend longer than a few hours which is all I would have, otherwise I would not be covering my costs.
He was understanding and we agreed that if I could come in and give his wife a bit of training on keeping the records in better order (at a fee) and she did this, then I would do it for the £50 per month. He said he will speak to her tonight and we will go from there.
The only other issue is I will be taking on the bookkeeping 7 months into the year and the Accountants use sage (I don't as I can't afford it!) so I will not be able to view the audit trail to see where things are posted to.
Thanks again,
Carole
Get the client to pay for Sage - it is their accounts system after all.
In any case, you can ask for a PDF of the nominal ledger for the last couple of years which will give you an idea.
The other question is which system are you using? KashFlow, which is generally cheaper than Sage has an import facility to bring in the data direct.
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