If I am asked, as a general part of keeping a client's purchase ledger in order, to also take on the writing of cheques for that client, is there anything I should be particularly careful about in relation to my own liability as a self-employed service provider?
Just beginning to think it through for myself, but any pointers would also be appreciated.
... I've not met the client yet, by the way, but I have a suspicion that he's one of those who expect qualified bookeepers at a tenner an hour - but that's another issue ...
think that you need to point out to the client that there needs to be segregation of duties between those authorising transactions, those recording the transaction and those with custody of the assets.
In doing the books and writing the cheques you are both recording and authorising.
An auditor would pick this up as part of their report to those charged with governance as a material risk to the company.
Hwever, from the description I'm doubting whether this client is actually of a size to be audited so this is simply advice of best practice.
I would try to make arrangements so that whilst you may write out the cheques on the basis of your recording of transactions, in their own interest the actual signing of the cheques must remain with the proprietor of the business.
The £10 per hour is a whole other post methinks. However, it's all supply and demand. If there are twenty bookkeepers knocking down his door for work then he can get away with lower paying lower rates. If there's just one then the shoes on the other foot. It's all down to knowledge and negotiation... For higher rates of course it also helps to have photographs of the client abusing small furry animals!
All the best,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
I write the cheques (or do internet banking) for two of my clients, however, all the invoices are authorised in writing by the directors first and I am not a signatory - and I don't do it at £10 per hour!!!!
I do the internet banking for two of my clients as well. However, I do get the invoices authorised first and I don't authorise the actual payment for one, just put it on the bank ready to be authorised, but do pay the invoices for the other. Oh, and I do do it at £10 an hour!! (Well, £10 an hour for one and £11 for the other). At the moment I am AICB. Do you think I am selling myself short?
if you are happy with the money that you are getting and it is right for the area that you service then you're not selling yourself short.
I'm sure that you are in a better position than any others here to know what rates business's in your local market are willing to accept and what would be overstepping the mark.
For my area the benchmark is around £12 per hour but go 10 miles North and it's down around £8(!) 10 miles South though and it's up to £15. It all just comes down to local markets and as I said before, supply and demand.
All the best,
Shaun.
__________________
Shaun
Responses are not meant as a substitute for professional advice. Answers are intended as outline only the advice of a qualified professional with access to all relevant information should be sought before acting on any response given.
It's difficult to say whether or not you are underselling yourself because really it's all down to market forces and the area in which you live. I think it is going to get harder to earn a decent amount with the number of people coming into the market who are prepared to work cheaply. However, cheap is not always best and you have to sell yourself. Person A may do 100 transactions an hour for £10 whereas Person B may do 250 transactions an hour for £15 making the seemingly more expensive person actually cheaper. That's why a fixed fee is often the better way to go, but in order to do that you need to have a good knowledge of the clients expectations and type of work in order or price correctly and have a trial period after which an adjustment may be made.
Yes, well I haven't met the client yet. I need to do so to see what sort of clerking/bookkeeping mix he wants - and then what he might actually need over time.
I'm grateful for the comments on separation of financial interests. In fact, as the client would initiate any purchase and invoices would come to me thorugh him, that particular conflict shouldn't really arise. The point is well taken, though.
I live in the boondocks, so far as bookkeeping is concerned but my "normal" prices are in the £16 - £18 range. I use a "minimum start-up followed by a reducing scale" approach to avoid getting stung by tiny jobs which take a disproportionate effort. Even here, though, in 2011, I believe that £10 is not sustainable (or sustaining!)
Thanks for your replies Shaun and Sheila. I live in the South-East not far from London where I know people charge more, but I didn't want to price myself out of the jobs. Also I know my clients' financial positions and know what they can reasonably afford. Anyway, they must be happy with my work as neither complained when I recently raised my rates to these amounts
