If you are just starting your bookkeeping business, chances are you might want to know what is the best way to bill your bookkeeping clients.
There are many ways that you can charge your clients for the works that you have done. First of all, you have to differentiate between the fees for routine jobs and special assignments.
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For regular assignments such as those involve in updating your clients' business transactions, your fee is normally calculated based a fixed rate per hour.
But for special assignments such as preparation of annual business budget, cash flows projections and jobs that have similar nature, it is not unusual to bill your clients based on assignment basis.
The fee for this type of assignments is always negotiable because it depends on the requirements and the resources involved.
Below are some of the guidelines that you can consider when billing your bookkeeping clients.
i) Number of hours spent
Since running bookkeeping business does involve providing your skills and knowledge, hence time is an important factor to be considered when billing your clients. The fee for an experienced bookkeeper can be easily more than per hour.
ii) Complexity of assignments
If the assignment involves higher level of skills, knowledge and responsibility, then you may want to charge your clients higher as compared to your normal rate. For example, if you are required to prepare a complete business budget rather than just updating financial records for your clients, it is always advisable to take into consideration the number of hours that will be spent as well as the skills that is required in order to complete the task.
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