Accounting & Bookkeeping & Small Business Forum

[Guest]

Its hard to believe that a small business or independent contractor would pay me $300 a month for bookkeeping and financial statements. It seems a bit overkill with providing statements every month for such small operations. I saw an online bookkeeping service that charges $69 a month for full bookkeeping! They process all of the data online. How do I compete with that? After doing some research, I have concluded that I can probably charge about $100 a month in my part of town, Los Angeles. A question I have is about scheduling the actual work. If you have 30 clients at 6-8 hours each, thats up to 240 hours of work. Do you normally break that down to a 2-3 week turnaround time? Assuming working 60 hours a week??? I like the course but the income is not realistic. I cant see $300 a month for most small businesses that are now struggling to make the rent and now with online bookkeeping gaining market share.

[Guest]

For a client whose work requires 6-8 hours $300 is indeed reasonable. I've prepared financials for years for a CPA firm and they charge more than that.

[Guest]

I estimate amount of time to complete work each month and charge a flat fee per month. I sometimes adjust my fees if the client's business grows and requires more time. I charge extra for other services the client may want from time to time. However, many of my counterparts charge by the hour $35-$45. (I'm in AZ)It depends on the type of services you're offering. I agree with Tina-you do get faster at completing the work so per hour may not be as cost effective.

[Guest]

Just FYI- I have not taken this course yet but I currently provide simple bookkeeping services as a part time job and I have two clients so far (working in a third). I do not price my services hourly, I do this by project and my largest client pays me about $100 an hour (or $1000 a month). As I do the work from month to month it has gotten easier and I have gotten faster. You may try to price your services by project and not hourly.

[Guest]

I agree that location has alot to do with what you can charge. I am offering complete bookkeeping, including payroll, for a flat monthly fee of $100.00. I am also located in a small town in Indiana. At this time, I have two monthly clients, but am anticipating more soon. I have found it takes a long time to get established and known. I have been open over two years and am just now starting to see some of my advertising efforts pay off.

[Guest]

Remember that $300 is an average. You'll have a lot of clients that will be $125-$150, and a few that might be over $700. Regarding the $69 service -- they are usually short-term services that simply offer bank statement data entry. It does not include any other services, and it's limited to only the smallest of companies. It doesn't include any type of consultation, nor professional support. I would never recommend anyone to compete against those type of services -- they have high turnover, and low customer support. Instead, emphasize all the additional attention you'll give, and the professional consultation. It's like comparing the finer restaurants with McDonalds. Finally, you mention you're in LA. You're in a tremendous market with a lot of opportunity. Don't be afraid to require what you are worth.

[Guest]

I agree with Bryan,
I got my A.A. in Cerritos and was a controller in L.A. before I moved to Idaho.

These $69 services are not what you are providing, remind your clients that they get what they pay for and you would be happy to charge them $60 an hour to clean up the mess. (be sure to put that nicely.) Sell the personal attention you will be giving them and the knowlegde that is included and you will easily get more buisness than you can handle. Bryan is right, I wished I was in LA right now. I wouldn't be clamering for clients.

Remember me when you are overbooked! tish104@hotmail.com

[Guest]

Some companies that do not outsource their bookeeping have a pt/ft person on staff that they would pay. I figure if they had someone working 20 hours per week (80 hrs per month) and paid them $6.00 per hour, that is $480 per month they would be spending. Most companies pay more than that! Instead they can hire you (a professional) for the bargain price of $300. I would charge more!

[Guest]

Just a few words about the $69.00 service. I e-mailed them and requested a quote for a small company with 2 employees, 2 bank accounts, cca 300 transactions a month. (They charge by the transactions.) Guess what? The monthly cost would be $400.00. The $69.00 is a catch - that's all.

[Guest]

Tina, can you be specific with what exactly "simple" bookkeeping services you provide? I've done payables, receivables, payroll, and reconciliation of accounts, I'm just wondering if its worth it for me to take this course and offer my services by starting my own home biz? I would love to make $1000/mo! Kelly

[Guest]

Public recognition of Professional Bookkeepers, Professional Tax Preparers, and Certified Bookkeepers is still in its infancy stage. Only when a businessman realizes that all his accounting and tax compliance issues can be legally handled by a person trained in those areas who is not also a CPA or Attorney will he be able to place his full confidence in the paraprofessional so trained.