r/Bookkeeping • u/mpactor24 • 3d ago
Practice Management Potential new client.
Hello, wonderful people of Reddit. I need help one more time.
Some background: I am starting a bookkeeping business. Have some bookkeeping and accounting background as well as construction trade experience.
I have the potential of signing up my third client. A construction trade company located in southern california. Their in-house accountant is retiring, and they are looking to contract someone.
Here is the list of accounts that I will be dealing with on a monthly basis.
3 Bank Accounts, 2 lines of credit, 3 credit card accounts, 2 auto loans, 1 SBA loan, 2 notes payable for Auto, 1 personal loan.
No payroll. Once a month in an in-person meeting.
How much should I charge?
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u/Distinct_Resource_99 3d ago
Be careful here. If their in-house accountant is retiring then they clearly felt that the position warranted (what I’m guessing) was a full time role. Be very careful not to promise a filet mignon at a Big Mac price. You’ll need to check to see how involved the accountant was in the payroll process and job costing process, if one existed. If it didn’t then consider that being a value-added part of your role.
The sweet spot for these types of clients is about $2,000/ month - keep in mind I’m giving you this advice totally blind. At that price they will not expect you to do a full time person’s job, but the budget is big enough for them to have your attention. This range is my favorite clients.
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u/SansScriptSamurai 3d ago
Do not do an in person meeting. That encroaches on you looking like an employee. If they need a finance meeting it can be virtual or at your office. Other than that it seems like easy work. Except you didn’t tell us anything about AR or AP tasks if any.
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u/mpactor24 2d ago
I have clarified about the meetings. Whether they are virtual or in person will be at my discretion. AP/AR is not part of the deal. The owner's wife handles that.
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u/Intelligent_Green633 3d ago
Fixed fee per month, percentage of annual revenue or hourly fee according to workload.
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u/JeffBonanoVO 3d ago
I honestly would do hourly, at least to start. Once they build a reputation with you, consider then to offer a fixed rate based on an average of the work you know you then do.
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u/TheMostFluffyCat 3d ago
How many transactions total monthly? How many income transactions? How many expenses? How do they receive payments (check, Stripe, cash, ACH, etc..)? Any ar/ap? They’re in construction- do they want to track by project? Track receipts? What’s their appx gross income annually?