Accounting & Bookkeeping & Small Business Forum

Guest · Posted: Tue Jan 25, 2005 10:22 am Post subject: Calulating rates

I am a CPA who works from home and I would like to do more bookkeeping. I am not all sure how much per hour I should charge. I have three clients currently with 3 different rates (all to low, I believe). I am practicing in Charlotte, North Carolina. Any suggestions?

Guest · Posted: Tue Jan 25, 2005 4:17 pm Post subject: RE: Calulating rates

Mickey,

I learned how to price from the Professional Bookkeeper course I took from Universal Accounting. Go to their website www.universalaccounting.com and request a free DVD. Included in that hour dvd is how to price. (Price per transaction instead of hourly). You could call them and ask for David. He has been helpful to me.

Guest · Posted: Sat May 28, 2005 11:02 am Post subject: RE: Calulating rates

GO TO "GETTING PRICE QUOTES" READ RESPONSE
FROM JERRY MONROE.

David · Joined: 16 Aug 2005 Posts: 186

Universal suggests that you set fees based on the transactions not on an hourly rate. When you have a conversation with a client and the only response you have is a list of rates, you will end up competeing on price and price alone.

However, if you price your services based on transactions as UAC teaches, you will do a couple of things when giving a price.

First - To find the number of transactions you will be asking a number of detailed questions about their business and current accounting processes you get a much better idea of who they are as a business.

Second - They also have no doubt as to your knowledge based on the questions and process you just walked them through.

Third - Overcoming objections regarding the price is easy the way UAC teaches.

Fourth - Hourly rates only allow you to bill at the end of the month. I however, am able to bill clients at the begining of each month.

If you are a UAC student, contact me or your coach and we can discuss this with you.

David

Jennifer T · Posted: Mon Oct 10, 2005 9:54 pm Post subject: Flat Rate vs. Hourly

Hi Mickey,

UA makes a persuasive case for setting a flat rate, and teaches students how to do so. However, I've found that I generally underbid a job when I try to use a flat rate. I now quote an hourly price and it's almost never a problem.

I graduated from the UA course back in 1992, and perhaps they've updated their flat-rate bid procedures, but I've found that in this day of software installations, upgrades, general questions from clients, and other variables, trying to bid a job for a flat rate just isn't worth it for me.

In my area good bookkeepers are hard to come by, and clients want people who are certified in QB. I charge $45 an hour, and have no trouble finding clients at that rate. I may raise it to $55 or more in the next few months.

I can charge this because I have the very-marketable QB certification. However, I know it's not the QB certification that really makes me valuable; it's the training I received from UA. Client's don't know this though, but I do. If I didn't have the QB certification I'm quite certain I could not charge what I do, even though the UA training is certainly the foundation of my business. Clients want to see that QB certification! Well, at least, in my area they do. I don't know what it's like in your area.

Good luck and I hope this helps!