Accounting & Bookkeeping & Small Business Forum

charity8987 · Joined: 29 Mar 2007 Posts: 12 Location: Vernon, CT

I am currently studying the PB course.

One question that bugs me though... if I will only spend 8 to 10 hours per month on any given client, how is it that regular A/R, A/P and payroll clerks work 40 hours per week on one business? In other words, if I will be qualified to handle all 3 of these areas, how can I squeeze in 3 employee's share of full-time work into 10 hours per month?

It doesn't match up mathematically. If a prospective client asks me how I can do 3 people's jobs for 300 bucks a month, how do I answer that?

Thanks!

Richard Noot · Joined: 20 Aug 2005 Posts: 912 Location: Minnesota

charity8987 wrote: I am currently studying the PB course.

One question that bugs me though... if I will only spend 8 to 10 hours per month on any given client, how is it that regular A/R, A/P and payroll clerks work 40 hours per week on one business? In other words, if I will be qualified to handle all 3 of these areas, how can I squeeze in 3 employee's share of full-time work into 10 hours per month?

It doesn't match up mathematically. If a prospective client asks me how I can do 3 people's jobs for 300 bucks a month, how do I answer that?

Thanks! Because a large percentage of an employees time is spent screwing off. This is another reason why it is more beneficial for a co to contract out to a bookkeeper that charges by the transaction and not the hour. If you would like a copy of a study done on how much time is wasted by an employee in a day contact me and I will tell you how to get a copy

jsfletcher · Joined: 20 Jan 2007 Posts: 21

Richard Noot wrote: charity8987 wrote: I am currently studying the PB course.

One question that bugs me though... if I will only spend 8 to 10 hours per month on any given client, how is it that regular A/R, A/P and payroll clerks work 40 hours per week on one business? In other words, if I will be qualified to handle all 3 of these areas, how can I squeeze in 3 employee's share of full-time work into 10 hours per month?

It doesn't match up mathematically. If a prospective client asks me how I can do 3 people's jobs for 300 bucks a month, how do I answer that?

Thanks! Because a large percentage of an employees time is spent screwing off. This is another reason why it is more beneficial for a co to contract out to a bookkeeper that charges by the transaction and not the hour. If you would like a copy of a study done on how much time is wasted by an employee in a day contact me and I will tell you how to get a copy

I would love a copy of that.

John

David · Joined: 16 Aug 2005 Posts: 186

Charity... Richard is partially correct. What about those businesses who are small enough that they have not hired staff yet? Who is doing those books? The business owner does it and that is why it is only 6 - 8 hours of work. As that business grows you will have more work to do and you can then charge more.

David · Joined: 16 Aug 2005 Posts: 186

Charity,

If you have finshed the 4th module of the PB you will recognize that a business that has three staff members doing the accounting will be doing significantly more transactions than a small business. Re read the portion that discusses how to calculate a fair fee. You will recognize that each transaction is to be charged for. It depends on the number of transactions NOT a standard fee of $300 for ALL businesses.

Contact your coach if you have furthur questions.

Richard Noot · Joined: 20 Aug 2005 Posts: 912 Location: Minnesota

My apology to the forum and to those who have privately asked for a
copy of the report I mentioned .

I am unable to answer your request on an individual basis. First of all it would be to time consuming. Secondly the article is COPYWRITED.

YOU CAN PERSONALLY GO TO WWW.SALARY.COM AND DO A SEARCH. HOWEVER BE FORWARNED. THESE ARTICLES ARE COPYWRITED AND ARE TO BE USED FOR YOUR PERSONAL USE ONLY. IN OTHER WORDS IT IS NOT LEGAL TO MAKE A COPY AND SHOW TO ALL YOUR CLIENTS.