[Question] Going rates

I have found that local bookkeeping clients DO NOT want to pay my VA rates at first, but that people that are specifically looking for a VA don't seem to be put off by my rates at all. I think they appreciate the value of Virtual Services, more than the local business person looking for a bookkeeper. For my local prospective clients, I am sure to explain what a CPA firm would charge per hour doing the same work and how much it truly costs the client to have someone on staff vs hiring me. It seems to be working. Remember that the companies looking for an employee at $11-15 per hour are paying considerably more than that in employment taxes, benefits and "non-productive" time to have employees. Keep your chin up!

Remember that the companies looking for an employee at $11-15 per hour are paying considerably more than that in employment taxes, benefits and "non-productive" time to have employees. Keep your chin up!

And, they DO get what they pay for! It took me nearly 8 months to fix the QB file as well as maintaining current records after I started at my 9-5 'cuz the prior 'bookkeeper' ($15/hour) had no accounting background and had set up the QB wrong. (which also meant the data entry was wrong!). What a mess!

I called around to local bookkeepers and I had to drag it out of them...their hourly rate that is, but I finally got some answers. It was kind of funny because this one guy gave me a monthly fee for the services I mentioned but wouldn't tell me an hourly rate. I finally put him on the spot and said so...for that $200 dollars a month fee just how many hours is it going to take you? 3? 5? lol. He finally gave me a number just to get me off the phone.


Beth

One thing you can do is go and visit or call to inquire with accountants if they have any overflow they would be willing to send your way. My understanding is that accountants don't normally do the month to month, but prefer to give that business to a bookkeeper.

One thing you can do is go and visit or call to inquire with accountants if they have any overflow they would be willing to send your way. My understanding is that accountants don't normally do the month to month, but prefer to give that business to a bookkeeper.

I have done that. I wrote up a very nice "Announcement" letter saying that I have started up a bookkeeping business and sent it to 26 local Accountants. I listed what I could do. Included some business cards, and mentioned that they could send me troublesome clients that have horrible record keeping so they don't have to deal with it.

I got an email from one saying that they were looking for a full-time person but that they would keep my cards on file.

Kim.

It is incredibly hard to figure out what rate to charge.

I am not very familiar with the in's and out's of bookkeeping, but maybe there are packages that you could offer (basic processes all the way through to the involved processes). I would look at the rate you have previously been employed at, and find a figure around that ball park to start with. Obviously some bookkeeping tasks can be quite involved and time consuming, so I would be charging a higher rate for these (people would need to pay for your expertise, and that is what is reflected in the rate you charge).

There are quite a few people out there in the world that charge way below what is standard, and from my point of view I wouldn't personally want to use their services as I feel if the rate is low, the work quality is probably low also. Sorry if this sounds harsh.

Kim - I hope you have figured this one out and aren't still frustrated. I will say this, I was having the same issues as you, but I finally got to a place where I came up with rates that fit my needs and goals. I used the free lance calculator which was a big help and then talked to enough people, some of which were business owners, to determine rates being paid in my area.

In the end, and this is the point of this rambling post, I came up with rates that I am comfortable with. Not only living with but telling people. I don't cringe when I hear them come out of my mouth or feel as if I need to justify them. That's what it came down to for me.

Beth

Great information... thanks for sharing. I'm in the process of setting my rates now? Question for you all... do you find that most clients go for hourly rates or a flat fee based on the project?

Thanks!

Here in Canada Quickbooks, Simply Accounting, and the Institute of Professional Bookkeepers of Canada all do annual surveys that include the average rates charged by those within the accounting professions including accountants average rates.

If a potential client has a issue with my rate I am more than happy to provide them with the information from the surveys confirming that my rate is in line with the industry standard. If I get "well I can got a bookkeeper off of craigslist for $15.00 an hour then I direct them to craigslist.

Also if the client has a problem with your rate - if it is within the industry standard - it is a client that you will probably not want.

This is so helpful for me--thanks to everyone who posted!!!