Management Accounts?

jow774

Ive just been to see a possible client who asked for book keeping. I gave them a price which was the standard book keeping price and gave them approximate hours. They then started talking about how they would enjoy being able to see future projections and cashflows etc from my book keeping work. As Im new to this i wasnt sure what to say. Do other MIPs charge extra for management accounts or include this as book keeping work? Im quite happy to do them as I do them for my main job, but think they are a little more in depth than basic book keeping?

coojee

jow774 wrote: »

Ive just been to see a possible client who asked for book keeping. I gave them a price which was the standard book keeping price and gave them approximate hours. They then started talking about how they would enjoy being able to see future projections and cashflows etc from my book keeping work. As Im new to this i wasnt sure what to say. Do other MIPs charge extra for management accounts or include this as book keeping work? Im quite happy to do them as I do them for my main job, but think they are a little more in depth than basic book keeping?

Definately sounds MUCH more than basic book keeping! I'd tell him there'd been a misunderstanding and you'd quoted him on the basis of doing XYZ but now you know he wants ABC doing the fee is actually this.

I'm not an MIP though, I'm sure someone who knows more about that side of things will be along soon.

jilt

Hi Jo, I agree with coojee, if you haven't quoted a fee to include management accounts then explain this to the client and give him a revised fee. Now I always ask if they want management accounts before I give a price for bookkeeping jobs.

jow774

jilt wrote: »

Hi Jo, I agree with coojee, if you haven't quoted a fee to include management accounts then explain this to the client and give him a revised fee. Now I always ask if they want management accounts before I give a price for bookkeeping jobs.

Thanks Jilt and coojee. Once you start advertising for new clients you start to realise how much of a novice you are at business! Id quoted him a low fee for his book keeping as I was trying to increase my clients. I think hes had a big business previously and is expecting the work of a management account for peanuts, I will probably not take the work as the man seems quite demanding. I think he would probably be better with an in house accounts assistant, rather than free-lance book keeper by the sounds of things.

jilt

Sensible idea, have been there myself, go in with a low fee which you're stuck with and the client expects the earth!

Don't worry the clients will come along if you stick at it, just don't be tempted to go in with too low a fee cos you'll not be able to justify an increase at a later date.

acsacsacs

Can imagine, like myself, many on here have gone in occasionally with a low fee to get a job.

In the few years I have been doing this I have realised that you can not let yourself be bullied by clients. Some expect the earth for next to nothing and as long as you are fair they will respect you more if you stand your ground.

You shouldn't have to do anything for free, would they?

I won a job about 8 months ago £600 a year for limited company accounts, payroll, free telephone support etc etc. and soon realised that I had misquoted. It happens to us all.

I would be up front with the guy and tell him that management accounts are seperate and will cost x y or z. Don't be afraid to tell him your hourly rate what ever that may be? I always used to worry about that but now I just say that's it, take it or leave it.

You don't want clients who are constantly moaning about fees and trying to get something for nothing.