I kept getting sponsored ads about people per hour constantly so decided to finally give in the have a look. It's basically a site for freelancers to sell their services. What I didn't expect to see was annual accounts and tax return for £80!
How the hell are we supposed to compete? How do they go through the engagement process, pay for hardware and software, annual licencing etc etc and manage to price at £80?
Example : https://www.peopleperhour.com/hourlie/prepare-your-company-accounts-including-tax-returns-vat-ct-etc/302749?ref=toaster-hourlie
He says he's charging around £15 an hour, which puts him at the bottom end of a self employed bookkeepers rate. I used to charge £195 if doing the bookkeeping and £295 if I wasn't, and was told by a professional friend that I was seriously underselling myself.
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John
Any advice given is for general guidance and professional advice should be sought applicable to your circumstances.
Hi Matt
My first thoughts response without viewing said link
Why would you want to try to compete with such bottom feeders?
Clients who choose an Accountant purely on fees are generally a pain and the kind of client you don't want.
Never undersell yourself. If you don't rate yourself, then no one else will.
I wouldn't get out of bed for that rate.
My initial thoughts after having a very quick look at his profile
Wonder what the ACCA would do if they found out he was going beyond trial balance and against the regs advertising an affiliation to them against their rules
Wonder if he is breaking any contract with his current employers by doing such work.
He will one day, assuming he doesn't meet with the severest sanctions of the ACCA and he passes all of his exams etc, be cursing all who do such cheap work, will dump all those clients who give him good reviews as he wont be able to increase their fees sufficiently to cover his chartered billing levels and wonder why he wasted his time with such clients.
Don't try to compete with such.
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Joanne
Winner of Bookkeeper of the Year 2015, 2016 & 2017
Thoughts are my own/not to be regarded as official advice,which should be sought from a suitably qualified Accountant.
You should check out answers with reference to the legal position
There is always someone who will do it cheaper than you can.
If clients want to choose their accountant on price alone then we dont usually sign up that sort of client.
We compete on the value that we can add to a client and explain this using a software based approach.
We now probably sign up about 50% of prospectives we meet but other 50% say we are too expensive which is ok with me.
Recently assisted 3 clients to move/set up from start on Xero. We charge £1308 + VAT for our premium package and all 3 clients went for premium package (in fact one selected an addon that made it £1548 + VAT. Most accountants do this for nothing but when we explain the pain we can solve and the benefits to the clients of using Xero to assist them and their business then price doesnt really become an issue.
