Accounting & Bookkeeping & Small Business Forum

VirginiaM · Joined: 20 Feb 2007 Posts: 19 Location: Spokane, WA

Hello everyone,
I have a pretty simple question: Is it appropriate to charge a client for the time you spend meeting with them after the initial consultation meeting that is free? If so, would you charge your normal hourly rate?

On the same lines, should you charge the client for meeting with their CPA to discuss their books? I have a client right now that I've just finished up reconstructing their 2006 books so they can file their 2006 taxes, and I will be meeting with their CPA next week to go over the QuickBooks file and answer any questions.

This may be a silly question, but I'm a little torn and was wondering what other people do. I'm guessing that it's probably not good practice to charge for meeting with the client--you don't want to make them feel like meeting with you costs them money, and isn't paying for your actual work enough? As for meeting with their CPA, I'm leaning towards charging for that time just because it's an extra service?

Any insight would be appreciated!!! Thanks!

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

VirginiaM wrote: Hello everyone,
I have a pretty simple question: Is it appropriate to charge a client for the time you spend meeting with them after the initial consultation meeting that is free? If so, would you charge your normal hourly rate?

On the same lines, should you charge the client for meeting with their CPA to discuss their books? I have a client right now that I've just finished up reconstructing their 2006 books so they can file their 2006 taxes, and I will be meeting with their CPA next week to go over the QuickBooks file and answer any questions.

This may be a silly question, but I'm a little torn and was wondering what other people do. I'm guessing that it's probably not good practice to charge for meeting with the client--you don't want to make them feel like meeting with you costs them money, and isn't paying for your actual work enough? As for meeting with their CPA, I'm leaning towards charging for that time just because it's an extra service?

Any insight would be appreciated!!! Thanks!

I have three questions for you.

1. Are attorneys considered professionals? (yes)
2. Do they charge an hourly fee for consultation, research telephone calls etc? (yes)
3. Are you a professional???

Tina · Joined: 20 Sep 2007 Posts: 1

Good question. I have the same problem, Virginia. Richard's reply is very true, but I find that the client feels nickled and dimed to death (like lawyers do already) and actually leave over this issue. Richard's reply is good, because it serves as a reminder that us bookkeepers are professional too, especially with all the education and professional associations meetings we go to to keep our skills and knowledge current, and that we, too, deserve to get paid professional fees and to bill in a professional manner. :D :)

DBeaver · Posted: Thu Sep 20, 2007 5:11 pm Post subject:

Hi Virginia,

I agree with both Richard and Tina's comments. Crass as it may sound...time is indeed money. Treat ALL of your hours as billable time. Perhaps you should consider a "Terms of Engagement" agreement for all of your clients that would include this issue. That way, no surprises down the road.

Whenever I'm challanged on this particular point I do explain to my client that I'm not just a data entry clerk but they are indeed paying for a professional service. If they make a "stink" about this, I know from the start that I'm not the Bookkeeping service they are looking for, nor are they the type of client I wish to work with. I know this may seem harsh, but it has saved me from much grief that I simply don't need.

Besides, I don't think a professional should have defend themselves.

Dave

Evangelist Tom Raymond · Posted: Fri Sep 21, 2007 10:29 pm Post subject:

Hey Dave, does that qualify us tax preparers also when we are doing people's income tax returns when we have to research stuff in the IRS pubs and phone calls we have to make and so forth?

David · Joined: 16 Aug 2005 Posts: 186

Something you all may consider is a set fee that would include money for the time you do spend AND the client doesn't feel nickled and dimed to death.

For those who have the PB or UPB program you have already been taught how to price. In fact, you can make more money this way.

Evangelist Tom Raymond · Posted: Wed Sep 26, 2007 5:54 pm Post subject:

Thank you David for the reply. I am already having a set fee by the hour for research and all that while I'm doing tax returns and other things, but as soon as my course is paid off, I will also be getting the bookkeeper course as well, so I can use it to apply the knowledge I've learned in the tax course to apply it to the book side. But it may not be til April or May, maybe sooner, I don't know yet.

David · Joined: 16 Aug 2005 Posts: 186

Tom,

Charging for a set fee is simple. What you do is charge an amount (typically $.50) per transaction. A transaction simply put is any piece of paper like a receipt, check stub etc etc. Then you add $100 for Financial Statements and that is your set fee. You still want to do a set up fee and at times hourly is best for back work or project work but a set fee works best.

In the Professional Bookkeeper and in the Universal Practice Builder courses, we go into much more detail regarding how to price, what questions to ask to get the correct number if transactions, how to make the sales pitch, overcome objections and then it includes samples of written agreements to use.

Evangelist Tom Raymond · Posted: Thu Sep 27, 2007 3:28 pm Post subject:

Cool, I will definitely look into that. Also, I have another question. In the Professional Bookkeeper course, I saw that they don't discuss doing bookkeeping and everything else for partnerships and corporations to prepare for the tax returns? Why is that? The reason I'm asking, is because I am having problems understanding how to do them and so forth and was hoping that the bookkeeping course would clarify it, but I would also like to learn to do accounting for businesses as well, but I was hoping that the bookkeeping course would explain more on partnership and corporate returns. If there isn't anything about that in the bookkeeping course, is there anywhere I can go other than the tax course to help myself understand them a little better and to do research, so I can learn how to fill out the K-1 and 1065 easier? I just want to be able to understand how to do them a lot better than I did in the course.

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

Evangelist Tom Raymond wrote: Cool, I will definitely look into that. Also, I have another question. In the Professional Bookkeeper course, I saw that they don't discuss doing bookkeeping and everything else for partnerships and corporations to prepare for the tax returns? Why is that? The reason I'm asking, is because I am having problems understanding how to do them and so forth and was hoping that the bookkeeping course would clarify it, but I would also like to learn to do accounting for businesses as well, but I was hoping that the bookkeeping course would explain more on partnership and corporate returns. If there isn't anything about that in the bookkeeping course, is there anywhere I can go other than the tax course to help myself understand them a little better and to do research, so I can learn how to fill out the K-1 and 1065 easier? I just want to be able to understand how to do them a lot better than I did in the course.

Tom: They do discuss doing bkkpg for partnerships and corp. The bkkpg is thesame . THE ONLY DIFFERENCE IS IN THE EQUITY SECTION. WHICH AGAIN IS DISCUSSED.

As far as your other question is concerned. The tax aspects are discussed in the Universal TAX course. The bookkeeping is discussed in the Universal bookeeping course.

Evangelist Tom Raymond · Posted: Fri Sep 28, 2007 1:59 pm Post subject:

I kind of figured that, but I wasn't for sure if they would discuss the part in the bookkeeping course on how to come up with the figures and what not to do the K-1's and all that, so I would be able to understand how they come up with certain percentages that are on the K-1's and what not.

mardig · Joined: 01 Nov 2007 Posts: 13

I am new to this forum and considering buying the course and setting up a bookkeeping business. I have a lot of self-taught accounting experience, two years with H&R Block doing taxes, and over 20 years of owning my own small businesses.
You have surely invested a lot of time and money in obtaining the knowledge you have. It is worth it to charge for services provided.
I would use judgement so as not to "nickle and dime" clients, but fair pay for fair service is warranted.
I would want clients who value my service and are willing to pay for it, not have a roster of clients trying to nickle and dime me back.

Many many years ago I heard a story that I am sure is not exactly true, but makes the point:

One weekend at the country club over drinks, Mel the doctor asks Tom, the lawyer: What can I do about my relatives. They come over to see me on weekends and expect free examinations and medical advice?"

Tom's response was; "Send them a bill for anything they ask you for! By the way, what is your office address, so I can send you a bill for the legal advice I just gave you."

David · Joined: 16 Aug 2005 Posts: 186

Mardig,

Is your goal to get monthly clients or to consult for hourly rates?

I would coach you to not get stuck in a hourly mentality because you get paid for your time. If you have set fees then you are being paid for your value. We teach this in the Universal Practice Builder course when we discuss becoming an Accountrepreneur instead of just an Accountant or Bookkeeper.

Regards,

David