I've had a client ask me to go through their last seven (monthly) VAT returns which have obviously been submitted. They want peace of mind they've calculated them correctly.
As a guide I've been told there are roughly one hundred invoices to be checked for each of the 7 months.
I've only ever done work like this by charging by my hourly rate... but does anyone ever offer a fixed fee as a 'one-off' on such work?
I've said I need to take a look... so not sure whether to take a look and offer fixed fee there and then?... Or am I best to simply say I'll take the work away with me and stick to my usual way of charging by the hour.
I'm looking to potentially doing other Bookkeeping work for this client, so what's the best way?
Your thoughts on this would be very helpful. Thank you in advance.
Hi Lesley,
My opinion is that you have to be honest with the client and yourself. So for me it should be the hourly charge.
If you go for fixed rate and get it wrong:
You will be annoyed
Or
Customer will be annoyed
The key to this piece of work would be to do a job as efficiently and effectively as you can.
By doing this, your client will realise the value that you offer their organisation.
Does that help?
__________________
TMT Accounting Ltd
Xero Accountants in Bristol
http://www.tmtaccounting.co.uk
You may be able to work this backwards, and if a client wanted me to do this I think it may be a starting point.
If you base your hourly rate at £15/ hr, that equates to £0.25/ min. If you allow a minute per invoice to cover actual time checking the invoice (a minute soon dissappears), and allows for the ones that need to be checked further, then add a contingency, because there are going to be more than 100 invoices (I am assuming combined purchases and sales), so double it = £50
I have a minimum charge, which isn't far off that amount so would probably work to my minimum.
If they are expecting you to make any corrections, over and above the basic checking, then I would advice that it is an estimate, rather than a quote.
Just one of the ways I work out a basic estimate, and you need to adjust for your hourly rate.
Two very different answers... to which I agree with both! I have always been indecisive!!! In this situation I'd like to give a guide in price although as TMT has said... you can end up out of pocket or presenting your client with a nasty surprise!
I'm going to see this client tomorrow... so will ask to take a quick look at the previous returns... ideally I'd like to bring the work away to do it.
I've thought that to be fair to us both I'll suggest I need to charge my hourly rate but at the same time offer a guide... as Bill has said of an estimate of £ 50 per return.
The chap I've spoken to was keen to know my hourly rate, as he'd like me to work one day every fornight from their office. Not sure how you find things when you give prices to potential clients? Just recently I've started to try to offer fixed fees more, as when you say (for example £15 ph) most people think OMG! and it instantly puts them off.
There seem to be too many thinking Bookkeepers simply just input data into Sage and think you should only earn the minimum wage!
Further to my visit today... The client is going to sort the previous 7 returns.
Instead they would like me to do the current one as some of the Purchase invoices in the current one are in Euros... so these need converting! Any tips on this aspect? I'll be doing each return manually! Bit of a new one on me...
Any tips or advice on Euro conversions in relation to VAT would be very welcome!
The invoices that are in Euros have they the UK VAT attached to them??
I had a scenario once that had VAT from another country on it(inv was euros) and we had to go round the houses to get it back, not via the normal method, and in the end after months we gave up as it was not a large amount. Anyway we queried it with HMRC at the time as it should have been more straight forward and they said it depends if the company is british or not that has produced the invoice. This occasion the VAT was 19% from an European country, with a European company.
I use Sage instants and I have set up an "exchange rate variance" for all differences as we have alot of Europe and USA and sometimes there are alot of differences.
The company is British and based here. They are invoiced at their UK address by their supplier in the EU in Euros for services provided in the EU. The company is VAT exempt but is able to claim all of its VAT back despite not charging VAT. The whole Euro convertion and VAT is a new one on me!... Is the company also meant to compile an EC Sales List calendar monthly too?
The company is moving onto Sage 50 2012 in April and so then the VAT will be done on there... In the meantime any advice to aid accurate manual completion would be very welcome!
