Accounts for bank

hushbaby

Hi

I need some advice. I have had a client enquiry about preparing a set of accounts for a bank, the person is a gardener and has a loan which he wants to convert to a mortgage.

What are my risks? Do I need to sign the accounts or just prepare them? How much would you charge for something like this?

This would be my first client.

Thanks

mark130273

i have delt with a client myself who is an expert in dealing with banks and putting in business plans and account for them and the bank are looking for a proper set of account but all they have to do is look nice and neat and have a ok profit for them.....the are not really totally interested in the finer details ......well that what my client has told me about it....and as for a charge....be maybe slightly less than for doing a proper set ?

AK002

It's no different tbh. It's just a set of standard accounts that they will send to the bank.

The bank will be looking at assets (if any) and profit.

I'd charge the same as preparing a standard set...

hushbaby

And how much do you charge for a standard set of accounts?

AK002

I work for a firm so the prices the firm charge are not going to be relevant to someone starting up themselves..

You can charge by the hour or have a set fee..

deanshepherd

AK002 wrote: »

I work for a firm so the prices the firm charge are not going to be relevant to someone starting up themselves..

I disagree. You should charge the going rate. Otherwise you will forever be working from home earning the bare minimum rather than building up a business.

AK002

But the going rate varies.

My firm can charge anything up to £3k for basic accounts prep... go with that then?

deanshepherd

AK002 wrote: »

My firm can charge anything up to £3k for basic accounts prep... go with that then?

I'd be interested to know how many gardeners' income and expenditure accounts your firm does for £3k..

Psyche

Do they want you to do the bookkeeping too, for instance do they have their bank statement and a bunch of receipts, or have they kept everything up to date and you just need to do a balance sheet and income statement?

If it were me, I'd try to estimate how much work is involved and how many hours it will take and then apply an hourly rate. Also keeping in mind that it is a small business (and that they are also doing YOU the favour of giving you some experience), maybe... £200? More, if you have to do their bookkeeping too.

AK002

deanshepherd wrote: »

I'd be interested to know how many gardeners' income and expenditure accounts your firm does for £3k..

Appologies if that sounded cheeky lol wasn't meant to be :001_smile:

Don't have any gardeners..

deanshepherd

Haha not a problem.

My point is that just because people on here are newly self-employed and working from home, it doesn't mean that they should charge less for the same quality of work.

In fact, given that most have more free time to dedicate to each client then you should consider charging a premium.

If you don't then when you want to grow and move into offices and take on staff you will find that you do not have sufficient fee income to cover those things because you decided to try and undercut everyone else in the early days.

Don't get stuck with low fee paying clients!!

deanshepherd

Oh, and in response to the original question..

I wouldn't ever go below £360 plus VAT for a basic I&E account - surely they can afford £30 a month?!

Plus, if they need them for a bank (and probably urgently) that is, again, an entirely justifiable reason for charging even more.

AK002

Very true.

Also (if you are keeping them on for next year..) offer s/o payments to reduce the 'hit' at the end of the next year.