Flat Fees
Hi Skate - I generally have good results by giving the client a flat fee estimate, but that takes some experience. Here's what I generally consider:
The number of transactions on a bank statement.
Unresolved problems with taxing agencies.
Number of employees.
Multi state transactions.
Inventory.
Multiple entities.
Sloppy recordkeeping, no receipts, messy files, no copies of important docs.
Inexperienced inhouse bookkeeper.
Software I'm not familiar with that is used basically as a word processor to print checks.
Bad banking practices - bounced checks, poor controls over cash, problems with cash flow.
I look them up online in superior court public records to see what their history is in regards to suing and being sued. I look them up online in public records to see if their licensing (if any) is current and good. Better business bureau. Anything I can find.
These are things that I consider when estimating fees. Unless the books are really good, I might charge around $500 - $700 per month for write up on MY software, not his, and I'll provide Management Use Only financial statements. I refuse to prepare payroll and refer clients to a good payroll preparer - noting that my fees are much higher than a specialist. I might charge a minimum of $500 for the Corp Fed return and $150 per state return. I also charge $100 per hour for work not specifically identified on my Engagement Letter. Can't stress the importance of that Letter.
I'm flexible. I'll discount fees or even lower the monthly fee if the client is trainable and becomes easier to work with or refers me to lots of really good clients. It's easier to discount than to raise fees. That's important to remember.
Payment is due on receipt of the invoice. I don't start on the next month until I've received payment for the last month. New clients should expect to pay a retainer for any work needed to correct their records so you can begin with good balances. I always give a higher rather than lower estimate for this work. Don't let the client get ahead of you on fees. They will pile up and you'll get left holding the bag. And don't be shy about asking for payment.
Easier to refund or apply overpayments than to collect underpayments. Easier to discount than to raise prices.
If the client balks at the cost and goes somewhere else, perhaps that frees you up for the good paying, higher quality clients.
Good luck and don't be afraid to charge good money for your good work!
Hi Skate - I generally have good results by giving the client a flat fee estimate, but that takes some experience. Here's what I generally consider:
The number of transactions on a bank statement.
Unresolved problems with taxing agencies.
Number of employees.
Multi state transactions.
Inventory.
Multiple entities.
Sloppy recordkeeping, no receipts, messy files, no copies of important docs.
Inexperienced inhouse bookkeeper.
Software I'm not familiar with that is used basically as a word processor to print checks.
Bad banking practices - bounced checks, poor controls over cash, problems with cash flow.
I look them up online in superior court public records to see what their history is in regards to suing and being sued. I look them up online in public records to see if their licensing (if any) is current and good. Better business bureau. Anything I can find.
These are things that I consider when estimating fees. Unless the books are really good, I might charge around $500 - $700 per month for write up on MY software, not his, and I'll provide Management Use Only financial statements. I refuse to prepare payroll and refer clients to a good payroll preparer - noting that my fees are much higher than a specialist. I might charge a minimum of $500 for the Corp Fed return and $150 per state return. I also charge $100 per hour for work not specifically identified on my Engagement Letter. Can't stress the importance of that Letter.
I'm flexible. I'll discount fees or even lower the monthly fee if the client is trainable and becomes easier to work with or refers me to lots of really good clients. It's easier to discount than to raise fees. That's important to remember.
Payment is due on receipt of the invoice. I don't start on the next month until I've received payment for the last month. New clients should expect to pay a retainer for any work needed to correct their records so you can begin with good balances. I always give a higher rather than lower estimate for this work. Don't let the client get ahead of you on fees. They will pile up and you'll get left holding the bag. And don't be shy about asking for payment.
Easier to refund or apply overpayments than to collect underpayments. Easier to discount than to raise prices.
If the client balks at the cost and goes somewhere else, perhaps that frees you up for the good paying, higher quality clients.
Good luck and don't be afraid to charge good money for your good work!
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