Accounting & Bookkeeping & Small Business Forum

[Cindy]

I have a few clients of my own. Approached by an established service looking to use me as a subcontractor. Being my business is so new (only six months or so), I'm interested. Especially as it will give me insights as to how the more established services work, etc. My question: What is the industry "standard" for my compensation in subbing for another service. Do they mark up my fee to the client? Or is there a percentage split. How do I know what they are really billing the client? Is it hourly...or a combination. How does it go for this kind of an arrangement?? Look forward to hearing from as many of you as possible. Thanks in advance. This is a very very small town and several established bookkeeping services. Would like to establish this relationship as it could lead to partnerships or a business purchase down the road. Everyone knows everyone around here........

[Jennifer T]

Probably the best way to get the information you seek is to ask the people who approached you all the questions you asked here. We can only guess as to the actual rate charged, if it's hourly or a flat fee, how it will work, etc.

I think this is an excellent opportunity. Even if you don't earn as much as if the client was directly yours, you have the benefit of somebody else's oversight, and this is huge when you are first starting. The fact that you will be receiving a greater volume of business will help you get past that "newbie/insecure" phase, building your confidence more quickly than if you didn't do this.

Right now it's more about the experience you gain than the money you can make. It's definitely a good trade, because the experience you gain will be very valuable to you down the road.