Write-Up Practice

[taxmandan]

Your fees are fine

"I sometimes wonder if my pricing is to high. $50 an hour with a min. charge of two hours. I had three call me the last few weeks and they said it was too high."

The problem with write services is that clients consider it a commodity, they think that anyone with a copy of QB can do it, so the price is all that matters. In our town we seem to get another homebased bookkeeping service opening every week, at $5/month less that the last one charges.

We have 2 write-up clients, our fees seem to be too high for most callers, which is what we want. Write-up clients are much higher maintenance (re: PITA) than tax clients and I make more for my time on tax work. If they want to pay it, I'll take them on, but they have to make it worth my time and effort.

[Jiggers]

Write-up fees

$50/hour too high?

I charge $80/hour for Schedule C monthly bookkeeping clients.

I charge $90/hour for 1065/1120/1120S monthly bookkeeping clients.

These are all after-the-fact bookkeeping/payroll reporting from the client's monthly bank statement and check stubs.

[geekgirldany]

$50/hour too high?

I charge $80/hour for Schedule C monthly bookkeeping clients.

I charge $90/hour for 1065/1120/1120S monthly bookkeeping clients.

These are all after-the-fact bookkeeping/payroll reporting from the client's monthly bank statement and check stubs.

Is this bookkeeping only or do you include the tax return prep with the charge? Or give them a discount on the tax prep? Send me a PM if you would like.

I agree there is always going to be someone lower. I had one that went to a lady that charged $25 an hour. He is still a tax return client.

[taxxcpa]

KC Trudy

Has anyone every receive something from that KC Trudy. Just wonder what he is all about. Also there is a Frank Salman. I believe someone mentioned him on here about learning to market your business.

I attended a seminar by a KC something. I thought it was Casey at first. His gimmick was that you would get the names of near-by businesses and send them a tape recording with some tax tips and a hint that they should let you handle their accounting.

One of his suggestions as to pricing was to ask "How much have you budgeted for accounting?"

I really didn't think his ideas would be that effective.

One way that works is to make telephone calls. There are people who call all day long asking people if they are satisfied with their present accountant. That works but it takes thousands of calls.

[S T]

Received Info

It is KC Truby and there is a website at http://www.kctruby.biz/
Appears that he using a lot of outsourcing, some of which is in India.

Sandy

[BHoffman]

Agree with those who say write up is time consuming and not as profitable as tax work. I started out with about 10 monthly write up clients. Lots of work, not much money.

Business evolved and I took on more tax work. Got rid of most write up. Much more money and much more free time. Go figure.

Business is still evolving - for some reason, I'm inundated with write up work again and not liking it very much. I get very behind during tax season and then it's a lot of catch up when I'm just plain tired. It's tedious and pays lousy.

But, it keeps me out of trouble and the extra dough isn't bad; it's just that I don't feel it's worth the time and hassle. I prefer to charge flat fees for write up and those darn clients have a way of piling on a lot of "extras" so that I'm working for about $10 per hour. One guy calls me EVERY SINGLE DAY wanting me to do some kind of clerical thing - fax a letter, look up a check stub, settling a bet over a tax question when he's out drinking with his buddies at 9PM, etc. It's like I'm his Miss Moneypenny. He makes great pizza though and has been a client forever, so I put up with it. Have no idea why. That's another thing - working with these guys every month and before you know it, you start liking them. You go to their weddings and baby showers. And that's when they put you on their speed-dial. Sheesh.

[JohnH]

Sounds like you are describing a few of my clients as well. But I can honestly say that when they call and half-apologize for bothering me, I'm getting MUCH BETTER at saying "No problem. Take as long as you need - you're on the clock."

[Jiggers]

Fees

Is this bookkeeping only or do you include the tax return prep with the charge? Or give them a discount on the tax prep? Send me a PM if you would like.

I agree there is always going to be someone lower. I had one that went to a lady that charged $25 an hour. He is still a tax return client.

My fee is for monthly bookkeeping only. I charge extra for quarterly and annual payroll reports.

When I started out many years ago, I wanted monthly bookkeeping clients and my hourly rate was considerably lower at $30/hour. They paid the rent and fed me in the off season. As my tax preparation business grew, the monthly clients at the lower rate was cutting into my tax preparation business which was billed at higher rates. I have since gotten rid of most of my monthly clients except the higher more profitable ones at the rate that I showed.

[Taxman]

For those in favor of tax work over write-up are you going after more 1040 work or is it a combination of business and individual tax work? I'm looking to strike out on my own but have a stable source of cashflow coming in. Just looking for suggestions on which way to focus the practice and avoid alot of pitfalls. Thanks for everyones help

[AuditorTurnedGood]

I'm getting MUCH BETTER at saying "No problem. Take as long as you need - you're on the clock."

I am writing this on the wall behind my desk. And a note on the dash of my car. That is fantastic.

[geekgirldany]

Thank you all. A good discussion. Great information. I found a Small Business Association nearby. I believe I will go by and talk to them regarding my business. I am very blessed that I have a good business and good clients. But after 9 years I think my tax return client list should be a little bigger as should my write-up. So I am doing something wrong and I believe I know what it is.

[BHoffman]

For those in favor of tax work over write-up are you going after more 1040 work or is it a combination of business and individual tax work? I'm looking to strike out on my own but have a stable source of cashflow coming in. Just looking for suggestions on which way to focus the practice and avoid alot of pitfalls. Thanks for everyones help

Hi Taxman - I think business evolves over time. My 1040 work increased via referrals, as does the write up work.

I get a whole lot of new work simply by calling existing clients, both 1040 and business clients. I tell them I'm slow and looking for new clients and ask them to refer me. They always do. One guy referred 4 new business clients to me this year. A friend of a client referred 3 new business clients to me last year.

Amazing what you get when you just ask