Help! How much do you charge for bookkeeping?

How much roughly is the going rate for a bookkeeper and is it better to charge per hour or by job? I'm in the south west also, I know prices can vary by area.

Thanks
seo2consult

Comments

  • AlishaAlisha Posts: 8Registered, AATQB
    Hi Jenbo.
    I'm in the south west too and I charge £10 an hour but that's because I've only just started. I think the average in our area is around £15 but it varies widely based on experience.
    As I'm new I'm still trying to generate business plus I don't have many overheads so that's always a consideration.
    I hope that helps?
    seo2consult
  • JenboJenbo Posts: 52Registered
    Thanks Alisha,

    That's helpful, I have been searching online and I read around £25 per hour but it didn't say from what area. Then I did see on a business website from my area that they charged £20 per hour and they were a new business. I know what you mean about the experience, I am fully MAAT qualified and have worked in industry for 15 years but never practice so I am a bit nervous that I won't have enough experience. £10 is quite cheap though isn't it?

    Can I also ask what you have done about continuity of practice, I don't have anyone that I know of so was going to look on the aat directory. Also what software would you recomend?

    Many Thanks

    Jenny
    seo2consult
  • danka7danka7 Posts: 3Registered
    Hi Jenny
    I think it should be £25 per hour, as you need to pay tax from that.
    Dana
    seo2consult
  • JenboJenbo Posts: 52Registered
    Hi Dana,

    What area do you live as I know it can vary based on this. Do you think £25 even for a new starter?

    Thanks
    seo2consult
  • AlishaAlisha Posts: 8Registered, AATQB
    Hi Danna/Jenbo
    It depends on whether your planning on being a bookkeeper or offering full accountancy services as well to be honest. Your original question was for a bookkeeper which an average of £15 (though with your experience £20 probably wouldn't be unreasonable) would be fine. As you are MAAT however I assume you would get the full accounting license in which case you would probably charge more as you have more experience and more qualifications normally than you're every day bookkeeper. For example I'm only qualified up to level 3 at the moment and only work with sole traders and partnerships and advise on VAT. Your license will cover a lot more!! So you can charge more.
    For continuity of practice I haven't gone past my 6 clients yet as I work full time for a legal accounts software company as well. You could put an advert out on here I'm sure and see if anyone in the area can help? Or contact a few local registered accountants as you suggested?
    In terms of software it depends what you want to spend and what sort of clients you need. I personally just excel at the moment as that's all I need at the moment. Sage is great though, I've used that previously and it's very user friendly.
    Alisha
    seo2consult
  • SalomeSalome Posts: 9Registered
    Hi Alisha
    May I ask where did you advertise ? I am thinking of starting to be bookkeeper but not sure how to start :)
    seo2consult
  • JayKalleeJayKallee Posts: 92Registered, Tutor
    edited September 2017
  • JayKalleeJayKallee Posts: 92Registered, Tutor
    edited September 2017
    You may use your MMAC costing method and overhead recovery to decide the price for your service
  • AlishaAlisha Posts: 8Registered, AATQB
    Hi Salome
    I just advertise on Facebook and through word of mouth at the moment. As I said I work full time as well so don't need to be too aggressive with a marketing campaign as yet!
    If you're just starting out it may be worth contacting local accountants to do a bit of outsourcing when they are really busy and need an extra hand. Just to boost your income until you build up your client base.
    I was also approached by a local financial company (as in pensions and mortgage finance not accounts) who get the names of local bookkeepers to recommend to their clients so it may be worth approaching a few yourself. Solicitors are another professional service that may need to recommend a bookkeeper now and then.
    The more people know your name the more clients you get so just work on your exposure. Social media is a great free marketing tool.
    I hope some of that is useful?
    Alisha
    JayKalleeSalome
  • SalomeSalome Posts: 9Registered
    Thank you Alisha
  • NeillawNeillaw New Member RossendalePosts: 242MAAT, AAT Licensed Accountant
    Jenbo

    I would take a look at the licenced members section of the forum as charge out rates do tend to come up a lot, there is also a comparison of prices done by one of the members which is due out this month.

    10.00 is a little cheap, worst case you should take a book-keeper advert and then add on the Er's nic, pension and any other benefits and then add on your profit margin and costs to attain your charge out rate.

    This area is difficult for new practices who want to build but do not get stuck with the hopping clients who just want a cheap service.
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