Pricing a bookkeeping job

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wildgoose1uk
wildgoose1uk Registered Posts: 200 Dedicated contributor 🦉
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

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  • Monsoon
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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    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
    LynWest Registered Posts: 122 Beyond epic contributor 🧙‍♂️
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    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
    Monsoon Registered Posts: 4,071 Beyond epic contributor 🧙‍♂️
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  • LynWest
    LynWest Registered Posts: 122 Beyond epic contributor 🧙‍♂️
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    Thanks Monsoon, i hate bookkeeping pricing. I'll definately take a look at your blog :)
  • mrb82
    mrb82 Registered Posts: 147 Beyond epic contributor 🧙‍♂️
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    That's a very interesting read, but also very intimidating to a student! I clearly do not know what real work is (yet)!
  • wildgoose1uk
    wildgoose1uk Registered Posts: 200 Dedicated contributor 🦉
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    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
    LynWest Registered Posts: 122 Beyond epic contributor 🧙‍♂️
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    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
  • gsauny21
    gsauny21 Registered Posts: 16 New contributor 🐸
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    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.
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