Weekly Bookkeeping

[geekgirldany]

I have a potential weekly bookkeeping client. He said it would be around 2-3 hours a day. At first I told him no because I thought it would be too much for me. But I believe now that I could work it in during the mornings. He has QB Online not the desktop version.

My concern is with getting paid. Since he is a new non referral customer I am trying to think of the best way to make sure I get paid. Most of my customers are monthly/quarterly. I was reading some previous threads about retainers. I was thinking about getting paid a week ahead with the assumption that it will be 2 hours a day. If it goes over that then I bill him separately. I don't want to go for a week to do bookkeeping and not get paid. I'll be cleaning up his quickbooks which I believe is a separate engagement. I plan on $40 to $50 an hour.

Would appreciate any input on this. He may not want me at that high rate but still would like to know the above for future customers.

[JohnH]

A weekly client will be more of a drain on your resources than you may think. You should build an appropriate "hassle factor" into your billing and into your retainer. I think you should require at least a month's anticipated billing in the retainer.

As for whether he can or can't afford your hourly rate (or is jus too cheap to pay it), that really should not be a concern in determining what you do. Your rates are what they are - if he can't afford you then it's a good idea to flush that out before you invest any of your time in him.

[AuditorTurnedGood]

JohnH is exactly right on all counts. One month's billing is the minimum for my retainers, with a few of my more well heeled clients choosing a larger amount (I got a check yesterday for the rest of my fees for the year from one client).

I also agree with JohnH on billing rates. I used to negotiate my rates down to get new business, and in the end ended up working more hours to make the same amout of money. I've found its a lot easier to start at a higher rate than to try and drag lower rate clients up. I still have one or two of my original clients (going on three years) that are paying less than my new clients now. Some of us have a tendancy to sell ourselves cheap, me included.

[DTS]

My two-cents, Dany

My concern in this would be the 2-3 hours a day, everyday. Some years ago, I worked for a CPA 3 days a week and some weekends for two years straight, in addition to my new office and trying to build up my clients there. I can tell you that the drain on me was tremendous. No matter how well I scheduled, I found myself always needing to be at my office, building my business and not his.

Maybe, something to think about. You might incorporate this into John's suggestion of the "hassle factor".

I know my concern is not what you were asking about, but this came to mind when I was reading your post. I just think you have to tell this new client that he needs to allow you much more flexibility,as you may feel it's needed down the road.

D

[taxmandan]

All good comments from others so I'll just add that you better be very clear up front in writing which 2-3 hours of the day you will be expected to get the work done. The data may not be there for you until 6 pm and then you get to spend the next two hours working on it.
Part of the 'hassle' factor to consider.

[AuditorTurnedGood]

I'll admit I still spend some of my time working for others in a part time capacity in addition to "the practice" - it's nice stability when my regular clients don't pay or run short on work as things slow down. I have a contract gig as controller for a small professional services firm, which I work 1-2 days a week. They key for me was, when I started with them, I reminded them I was not the 50 hour per week guy they were replacing (the company did some major downsizing) and that I had a practice of others I had to watch out for as well. I occasioanlly have to remind them of this, but it works out nicely, is steady income, and fantastic experience for this mostly tax guy.

Good to hear you're building your practice up, geekgirldany!

[RDALMASI]

Bookkeeping Service...

When I get a potential Client for bookkeeping I dom the following:
1)...Gather as much info. as possible about the business and industry
2)...Establish with client my fees per hour
3)...If client decides to get my service, We will both sign a simple agreement stating
service to be covered
4)...A retainer of $400.00 to $500.00 to start working
5)...Invoice client as soon as I have completed a section, so client is aware
of balance remaining. My simple agreement states that if there is no available
fund to cover future hours, no work will be done

[PIGLEE]

Something else to consider is, how big is your tax business? I at one point I quit all my bookkeeping ( almost all), I did not realize how much time it took me during tax season. I ended up being able to do more taxes, and I didn't loose any money, and I had a lot more free time in the summer. This was a move because my husband retired and I still was working and wanted more time with him. It worked out great for me, wish I had done it a long time ago. You are really going to be tied down with daily work, be sure you are ready for such a commitment, make the pay worth it.

[geekgirldany]

Wow! Thank you all for the postings. Really gave me alot more to consider.

I have to admit when he first mentioned it I thought that it would really pull me down trying to do that everyday. I told him it would probably be to many hours especially during the tax season. But then I thought of the money I could make and I could work it in mornings. During our conversation he said he might need someone less experienced I think that is the first time I have been told that. It might mean cheaper.

I found it a little hard having a conversation with him and finding out what exactly he wanted. He told me to come to his office. He could explain it better there. Must be because I could not get much out of him.

Anyways he isn't returning my calls now. So he might have found someone else. That is fine. This is all good information to know for in the future. After reading the posts here it would really be alot on me. I already have some health problems that slow me down... so maybe it was god's will that it didn't work out this time.

Thank you all again for posting.

[JohnH]

Maybe you could have given the whole situation greater clarity when he suggested that you come to his office so he could explain it to you. You could have told him that you would be able to meet him for up to one hour in your office at no charge, but you will have to charge him time and travel if you go to to his office. He would most likely have said he can't do that, and you'd know instantly that he places great value on his time but no value on yours.

[geekgirldany]

Hi John. He actually did come to my office. Long winded post here....

When we spoke on the phone I told him I ususally like to meet people first and discuss their business. When he came by he was just very vague. But maybe it was me also not asking the right questions. I don't know. The whole meeting was about 10 minutes. I asked him what he needed for his business in regards to bookkeeping and QBs. He said he needed QBs cleaned up, maintenance, payroll, tax returns prepared for 3 years, and..... someone to do his bookkeeping 2-3 hours a day. As soon as I told him I did not think I could do the 3 hours a day at his office he asked if I knew of someone that could. I mentioned another QBs ProAdvisor in town. He said they had already used them for setup but did not think they would do daily bookkeeping. Seemed strange because I think they do. The lady advertises her QBs services. He left after that and said he would remember me for other work.

He seemed like a person that had a lot going on. I wasn't given a chance to mention fees for any of my services. I think I need to learn to communicate a little better also with some people

[JohnH]

OK, so he already had his free office visit.
Anything after that is billable time (except in very unusual circumstances).

This tracks along the same line as the question about questions.

Client: "How much do you charge to answer questions?"

You: "The first answer is free. There's an hourly charge with a one-hour minimum for the second question and every one after it"

Client: "How much is the hourly charge?"

You: "$100 per hour. What's your second question?"

[geekgirldany]

That is pretty good John.

[taxmandan]

I mentioned another QBs ProAdvisor in town. He said they had already used them for setup but did not think they would do daily bookkeeping. Seemed strange because I think they do. The lady advertises her QBs services. He left after that and said he would remember me for other work.

So now you know you were his 2nd or 3rd or even 4th try to find a pliant bookkeeper. Likely he heard the same thing from the others as he did from you, and he doesn't seem to like the answer about who is in control of the engagement. Unless I was a brand new office trying to get things rolling and desperate to pay the bills, I wouldn't give him further consideration.