The temptation here is to think about undercutting all of your competition because this should guarantee that you will get all of the business, right? Don’t undersell yourselfĪbove I mentioned the importance of checking out your competition. You need to allow time for family and friends as well. So, when you estimate the hours that you are prepared to work, be realistic about how many chargeable hours you can actually accommodate.
#Average charge for freelance bookkeeping services software
If you are going to need to depend on this income, then try these steps:Ī – Decide how much you need to earn in a yearī – Decide how many hours you intend to work in a year – don’t forget time off like holidays, illness, travelling, CPD etc.Ī/C – Divide one by the other and you will have an approximate hourly rate, for instance:ĭon’t forget that the above method doesn’t take into consideration any overheads such as software and telephone, nor does it allow for hardware and setup costs.Īnd finally, don’t forget the hours above are for hours worked and do not include thinking time, planning, your administration and all of the other elements of running your business.
It might be that you are trying to gain a little extra income, maybe to pay for a holiday, or for some other “luxury”, in which case, price is not quite as critical, as it would be if you were trying to achieve a more sustainable growing business. People set up their own bookkeeping businesses for many reasons and it’s not always to make lots of money. You can do this by visiting local industrial estates, checking local business directories, trade directories and “Googling” local business. You will also need to investigate what the likely level of potential work is. This won’t give you a definite answer, but will certainly help to give you some guidance. Check out their websites and any business literature. On the other hand, if you were the only bookkeeping business for miles around, your services will be much more in demand, so this could potentially generate a higher fee.Īll of this means that you will have to do some research on the local competition.
For instance, if you are dealing mainly with small family start-up businesses, they will generally be less able to afford your services than a larger, more established business. The type of potential client will also have an effect. Businesses who are situated in more affluent areas will generally be able to charge a higher price for a comparative service to similar practice in a very rural community. Where you are based will have some influence on what you are able to charge. So what do we need to consider when we are setting our fees? Know your local market and your competitors However, this does not mean that we can’t work out a reasonable figure after doing some research, but I’ll say it again – I am not going to give you that figure, you will need to work that out for yourself. That might seem like a bit of a ‘cop out’, but the truth of the matter is, it’s true! When I am talking to groups of potential AAT bookkeepers or accountants who ask ‘how much should I charge’, I always answer with two responses: “I can’t tell you” or “it depends”.
When starting any business, getting the price right is one of the hardest things to master.
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