Pricing a bookkeeping job

wildgoose1uk

I have to price a bookkeeping job. I know what my target rate is but how do you estimate how long the job will take? Is it by number of transactions? Do you include year end accounts and tax return in the price?

It is easier to price other jobs like company formation, tax returns etc but if people have any tips for me on pricing this accurately then I would be grateful.

Thx

wg

Monsoon

Pricing bookkeeping on a fixed fee is hard. I use 2 minutes per transaction. I know that sounds like a lot, but all you need is a few niggles for the time to escalate. My 2 minutes has been worked out from actual bookkeeping carried out.

If it helps, I've been bookkeeping since 2004 and I still price by the hour 99% of the time as I still hate estimating bookkeeping; as you say, it's easier to price a set of accounts.

LynWest

i find bookkeeping the hardest to price for as the time spent on them can add up so quickly especially if you any complications arrise. I ask how much the turnover is, whether they are VAT registered and take into account the type of business. A retail business selling items under £50, is going to have a lot more work than a web designer charging £750 a time! This then gives me an idea of how much time it will take, i then offer the client a maximum fee for the first month or two if necessary. THey know where they are and you get to know how long it takes you. I then tell them my hourly rate and that it will take approximately £X per month, from now on. Hope that makes sense and helps

Monsoon

My blog post on pricing may help

http://justanothermip.wordpress.com/2011/03/26/accountant-what-to-charge/

LynWest

Thanks Monsoon, i hate bookkeeping pricing. I'll definately take a look at your blog

mrb82

That's a very interesting read, but also very intimidating to a student! I clearly do not know what real work is (yet)!

wildgoose1uk

Thanks for the thoughts. Looks like I am not the only one.

My target rate for bookkeeping is £26 per hour. Whilst that rate is ok in London I am beginning to wonder if it is too much out here in West Kent.

What do others think? I am in a rural area but not far from reasonable sized towns.

LynWest

I am in a rural Shropshire area but based in a large town and i aim for a target price of between £15-£20 per hour, but south near London i thought you should get more

wildgoose1uk

I know..... but it seems that some people confuse rural Kent with Out Stack in ZE2 (60.860551,-0.873719)

http://maps.google.co.uk/maps?q=60.860551,-0.873719&um=1&ie=UTF-8&hq=&hnear=0x489fa37f9a83a62d:0x6a6f981018de6da5,%2B60%C2%B0+51'+37.06%22,+-0%C2%B0+52'+26.76%22&gl=uk&ei=rdfTTtSED8iA8wPsofz2Dw&sa=X&oi=geocode_result&ct=title&resnum=1&ved=0CB0Q8gEwAA

gsauny21

If it helps I'm based in Suffolk on the east coast, I charge £15 per hour for bookkeeping but charge my services out for a monthly fee that includes year end Accounts and self-assessment.