When it comes to any kind of job, one of the biggest questions clients would ask you would be, “How much?” If you’re a freelance bookkeeper, it’s important to determine how you’re going to set your rates in a way that would work for both you and your client. Here’s how you can do so.
Charge based on your experience
When you’re a freelancer, you have the flexibility to create rates that will work to your advantage. Yes, you want to earn, but you need to remember that your goal is to provide quality solutions for your clients.
Before you decide on how much to charge for your services, consider your experience. What is the scope of the previous jobs you’ve done? Do you have experience both in big and small firms? Are you certified?
If you’re fairly new in the business, you can set your rates at a more affordable rate, and just gradually increase your prices as you gain experience and clients. You can also look into getting certified later on so that you can justify why you charge more compared to other bookkeepers.
Charge by the hour
Charging by the hour is a convenient way of making sure that you are getting paid based on the actual amount of work you do. If you choose to go this route, all you need to do is set an hourly rate and devise a way for your client to monitor the amount of time that you actually put into the job.
Though this greatly works to your advantage and avoids any losses due to job underestimations, this pricing system may not be suitable for clients who want to get a good deal or minimize their costs.
Charge a fixed rate
Charging a fixed rate or getting paid on a project basis poses a higher risk on your part, but it can offer a win-win situation for you and your client in the long run.
In order to do this effectively, meet with your client and ask for information about the project. Gather as much details as you can. Create a quotation and proposal for your client based on what was discussed.
Apart from looking at the project’s difficulty, estimate how long you’re going to work on the project and multiply it by your hourly rate. You can either charge higher or lower than that number, depending on how challenging you perceive it to be. Also, add enough wiggle room for additional expenses and contingencies that you may face while the project is going on.
Most bookkeepers say that imposing a fixed rate is better than charging on an hourly basis. This is because you can pay more attention on building a good relationship with your client and less on timestamps.
The Best Way
It all depends on you. If you’re unsure, you can try to do a combination of both fixed and hourly rates, the way other bookkeepers do it. From there, you can have a clearer idea of what works best for you. Ultimately, your goal should be to offer a win-win situation for you and your client.