Thanks so much for watching! If you want in-depth info and action steps on how to START YOUR BUSINESS IN 30 DAYS, check out my course here (available only in April 2020): finepoints.teachable.com/p/bookkeeper-business-coach
Do you clients give bookkeepers access to their bank accounts and other financial accounts or just their bookkeeping account. For me, This is more for personal use I don’t have any employees I am an entrepreneur.
@@FinePointsBookkeepingI like the approach of starting with an hourly rate and then converting to a fixed rate once the on-ramping is done for that client. By then you ought to be able to make an intelligent assessment of what kind of time you’ll need to allocate for the client every month, and decide on the appropriate compensation.
Connecticut rates for contractor, 1099 bookkeeper: Super Low: $40/hour Low/affordable: $45/hour Typical: $65.00/hour Experienced or bookkeeping firm: $85.00 to $95.00/hour
Have had a side tax prep business for years and I am thinking of expanding into bookkeeping. My day job is accounting and finance. My 2 cents is put yourself in your clients' shoes. If you have two painters show up to paint your house will you hire the one that wants to bill you $75 per hour or the one that will do your house for $250? You have no idea how long the hourly guy is going to take so he could work for 10 hours and hand you a bill for $750. People want certainty when they are purchasing. I learned this quickly in my tax business. You may under bid a job or two, but you will have a client and you will be learning. I always quoted my tax clients a set fee. If I under bid it, I would make it up when they come back next year and explain why their fixed price has gone up so much. Again, my 2 cents, but I think fixed rate is the way to quote and maximize YOUR revenue.
“Business opportunities are like buses, there’s always another one coming.” - Richard Branson. This quote always reminds me of there are enough opportunities to grow in 2023... a fellow creator.
Dont know if you still update your channel but I've learned a lot from them. Thank you so much. Im def. interested in becoming a bookkeeper and hope its as easy as you make it look. lol Cant wait to watch the rest of your vids. wish me luck!
Hey! Yes, Morgan is still updating her channel and sharing new videos every week! We hope you find much success in starting your bookkeeping business! Krista (FinePoints Admin)
Hi, Morgan - thank you so much for all of this valuable information! I was wondering if you have an update to the $40/hr rate you mentioned. It's been four big years since you made this video, and I'm curious to know if your recommendation has adjusted since then? I appreciate it!
Great videos! How much would you charge for each additional bank account and/or credit card for small, medium, and large clients, please? I searched UA-cam for the difference between ProAdvisor and Advanced ProAdvisor and I wasn't able to find anything on it, just a thought for a video.
I agree that the contracted worker saves the employer a lot, but when you are a contractor, you are the one that has to pay for everything, including all the taxes. You pay not only your portion of taxes but the employer's portion of SS/medicare taxes when you file your income taxes. And then you don't have unemployment insurance. So you better charge enough to cover all that too. Some costs like the office space are real savings, and who wouldn't rather work at home than in an office every day? But these days every business is trying to make even their "employees" contractors so they can get around the costs of paying employee benefits. You are forced to work a low wage and still have to pay all the taxes and other expenses yourself.
Hi Morgan, been binge watching your vlogs and I'm trying to follow every steps that you've been recommending. Can you recommend a site or a place where I can market my bookkeeping services?
Hello. This is Rickey Hughes. I have just watched your video about "How Much To Charge As A Bookkeeper". I thank you, so much, for sharing this video, although I have been considering charging clients by every transaction as I was taught to do when I took up a Bookkeeping and Accounting class. I believe your ideas are good, and I would like to learn more. Please let me hear from you at the earliest convenience possible about this. I would more than appreciate it. Again, I thank you very much.
Hi Morgan! You're videos are amazing. So informative and comprehensive. I have questions about billing clients. What are the payment terms? 15 net or 30 net? Do you invoice your clients in the beginning or end of month?
@@FinePointsBookkeeping It's going well! Back log of videos needing editing and kind of a hodgepodge of content. Once I get my bookkeeping business going I'm considering creating another dedicated channel.
@@linkingwithnaz1295 Cool! Nice to have a back log (I'll have that for awhile, then use them all up, ha). I'm considering getting some help editing in the near future so I can focus on other things (it's so time consuming). Good luck! :)
Amazing video as always! I am curious about the contract you make for your clients to sign, what all goes into that contract and so forth, is that something you can make a video about or share with me, as I am starting a bookkeeping business?
Thanks so much! It gives my hourly rate, and says that I'm an "at will" employee and either of us can cancel at any time. I've been a bit hesitant to share the contract publicly, as it's a legal document. But, if you google something like "legal agreement for independent contractors" that may be a good place to start. Having a lawyer look at it would be the most official, but I know that's not always in the budget starting out.
@Cheyenne hulit I would ALWAYS spend $150-$300 for a attorney read over it or provide one for you. That "small" amount of money can save you thousands down the road if anything could come to litigation.
I am getting pro advisor certified through intuit QuickBooks. I am still struggling to see what the value a bookkeeper is to a business when QuickBooks does everything????? Am I not understanding something properly? Please help
I’m loving your channel, I just got my CPA and had a baby and I’m starting my bookkeeping business. I’m currently writing up a proposal for my employer to change my status from employee to contractor. It’s a big company, I’m thinking $3,500 per month. Currently I cost them $5,966 a month, but I do more than reconciliation. I’m thinking it would take me 50-60 hours per month. Do you have any advice on how to sell my services to them? I am the only accountant there.
I sure would like to hear what you decided to do. From my experience, contractor are usually paid more because of all the other expenses they have to cover on their own, including taxes and their own benefits. Just from what I read, it seems like you would be shortchanging yourself. I may not be understanding it correctly.
@@tiffanyscavetta8097she said she costs them more as an employee. Maybe she meant because of the employment costs like liability ins., payroll taxes, etc. I would love to hear back from her here, though…
1-3% seems pretty low for bookkeeping rates. Is that just for bookkeeping? Not for payroll or AR/AP? I work in nonprofit bookkeeping for arts orgs and from my research we should be charging anywhere from 3-5% of revenue but that’s for nonprofit bookkeeping which is a bit more complicated with random performances and donations. We also do payroll, AR and AP. We do quite a lot. All their W2s and 1099s too. Could I schedule a paid consultation and get your thoughts on our rates?
Hey! Morgan is not currently offering 1:1 consultations. But Morgan does think that where you live, your experience, and what type of clients you are working with will effect how much you charge. We think you might like this video as well where Morgan goes into more detail on how much to charge clients: ua-cam.com/video/8A877-pVRKA/v-deo.html Krista (FinePoints Admin)
I know someone that is an owner of his won Pest Control business that wants to hire me as their bookkeeper and I see the benefit of me only being a contractor instead of employee. Would they need to be set up as a employee since it's their business? Or does it still benefit them to consider themselves as a contractor? I'm thinking it's personal preference? What are your thoughts?
There are a few things to think about, first, are you talking about: should they be hired out as an employee/contractor (for their own customers). There is a quiz on the IRS website to see if you're able to be a contractor (do you make your own hours, have your own equipment, etc). My gut feeling is that a Pest Control business could be a contractor. Or, were you asking if they should be set up as an employee in QB to get paid by their own business? This depends on their type of business (LLC, corporation, etc.). Most often for solo business owners, they are the "owner" and take "owner's draws" (equity account) to get paid. Let me know if that helps! :)
Towards the end of the video you stated if a company hires you as a contractor, they don't have to worry about you taking sick time. This may be a dumb question but if you're running your own bookkeeping business, do you never get any time off? What if you want to take a vacation and not bring any work with you. What do you do with all your clients?
Yep, pretty much any time you want! Occasionally you many need to talk with a client on their schedule. I choose to work about 10 hours per week right now. I'd say that it's maybe 1 hour per client EXTRA for month end stuff... depending on how much you've been keeping up all month. Hope that helps!
Thanks so much for watching! If you want in-depth info and action steps on how to START YOUR BUSINESS IN 30 DAYS, check out my course here (available only in April 2020): finepoints.teachable.com/p/bookkeeper-business-coach
Hi Morgan , I missed signing up for your class unfortunately. Any idea when your next class will be starting?
Do you clients give bookkeepers access to their bank accounts and other financial accounts or just their bookkeeping account. For me, This is more for personal use I don’t have any employees I am an entrepreneur.
Great content... agree with you thoughts here. I do recommend 100% charging a fixed rate and NEVER an hourly rate.
Good advice! Fixed rates are so much better (but also hard to wrap your head around sometimes when starting). Thanks for watching! :)
@@FinePointsBookkeepingI like the approach of starting with an hourly rate and then converting to a fixed rate once the on-ramping is done for that client. By then you ought to be able to make an intelligent assessment of what kind of time you’ll need to allocate for the client every month, and decide on the appropriate compensation.
Another great video, thank you for sharing!
Connecticut rates for contractor, 1099 bookkeeper:
Super Low: $40/hour
Low/affordable: $45/hour
Typical: $65.00/hour
Experienced or bookkeeping firm: $85.00 to $95.00/hour
Have had a side tax prep business for years and I am thinking of expanding into bookkeeping. My day job is accounting and finance. My 2 cents is put yourself in your clients' shoes. If you have two painters show up to paint your house will you hire the one that wants to bill you $75 per hour or the one that will do your house for $250? You have no idea how long the hourly guy is going to take so he could work for 10 hours and hand you a bill for $750. People want certainty when they are purchasing. I learned this quickly in my tax business. You may under bid a job or two, but you will have a client and you will be learning. I always quoted my tax clients a set fee. If I under bid it, I would make it up when they come back next year and explain why their fixed price has gone up so much. Again, my 2 cents, but I think fixed rate is the way to quote and maximize YOUR revenue.
Yes, so true. Love this example, thanks!
5
Agree!!
Awesome video helped alot thank you :)
Always learning something new here. I'm not even a bookkeeper but a lot of your tips and advice are applicable to other businesses :)
Thanks Marta! 💗
Love your videos. Thank you Morgan.
Thank YOU for watching! :)
Thank you for doing this video
Very informative thanks for sharing!
Thanks Kevin!
As a CPA, an accountant or or bookkeeper cannot be paid as a percentage of income. That encourages conflict of interest.
your videos are very helpful, keep up the great work. my second time watching you, gonna subscribe
Thanks for subscribing!
Krista (FinePoints Admin)
Which pricing strategy seems the most feasible for your business? Check out this bookkeeper Q&A too: ua-cam.com/video/r3a8KdS4tpk/v-deo.html
“Business opportunities are like buses, there’s always another one coming.” - Richard Branson. This quote always reminds me of there are enough opportunities to grow in 2023... a fellow creator.
Thank you.
No problem!
Dont know if you still update your channel but I've learned a lot from them. Thank you so much. Im def. interested in becoming a bookkeeper and hope its as easy as you make it look. lol Cant wait to watch the rest of your vids. wish me luck!
Hey! Yes, Morgan is still updating her channel and sharing new videos every week! We hope you find much success in starting your bookkeeping business!
Krista (FinePoints Admin)
Hello! Do you complete your clients payroll tasks? If so, is it part of your fixed rate or an add on service?
Hi, Morgan - thank you so much for all of this valuable information! I was wondering if you have an update to the $40/hr rate you mentioned. It's been four big years since you made this video, and I'm curious to know if your recommendation has adjusted since then? I appreciate it!
Would a retainer Fee be good to start so you can see what the state of the books are and then go from there?
Pricing is something i am so hesitant on. I have a tendency of under-valuing myself after years of low paying customer service jobs.
I totally get that!!
Great videos! How much would you charge for each additional bank account and/or credit card for small, medium, and large clients, please? I searched UA-cam for the difference between ProAdvisor and Advanced ProAdvisor and I wasn't able to find anything on it, just a thought for a video.
I agree that the contracted worker saves the employer a lot, but when you are a contractor, you are the one that has to pay for everything, including all the taxes. You pay not only your portion of taxes but the employer's portion of SS/medicare taxes when you file your income taxes. And then you don't have unemployment insurance. So you better charge enough to cover all that too. Some costs like the office space are real savings, and who wouldn't rather work at home than in an office every day? But these days every business is trying to make even their "employees" contractors so they can get around the costs of paying employee benefits. You are forced to work a low wage and still have to pay all the taxes and other expenses yourself.
Hi Morgan, been binge watching your vlogs and I'm trying to follow every steps that you've been recommending. Can you recommend a site or a place where I can market my bookkeeping services?
Awesome, thanks for watching! Have you watched this video? That has all my best marketing ideas. :) ua-cam.com/video/v92DBK9dbLA/v-deo.html
Hello. This is Rickey Hughes. I have just watched your video about "How Much To Charge As A Bookkeeper". I thank you, so much, for sharing this video, although I have been considering charging clients by every transaction as I was taught to do when I took up a Bookkeeping and Accounting class. I believe your ideas are good, and I would like to learn more. Please let me hear from you at the earliest convenience possible about this. I would more than appreciate it. Again, I thank you very much.
Hi Rickey, yes, per transaction was historically a popular method--I encourage you to try fixed rate, so much easier. :)
Hi Morgan! You're videos are amazing. So informative and comprehensive. I have questions about billing clients.
What are the payment terms? 15 net or 30 net?
Do you invoice your clients in the beginning or end of month?
By the 10th of the next month
can you work as a bookeeper when you're in a different country or continent?
I love this video!. Your channel growth is accelerating btw
Thanks and thanks! How's your channel going?
@@FinePointsBookkeeping It's going well! Back log of videos needing editing and kind of a hodgepodge of content. Once I get my bookkeeping business going I'm considering creating another dedicated channel.
@@linkingwithnaz1295 Cool! Nice to have a back log (I'll have that for awhile, then use them all up, ha). I'm considering getting some help editing in the near future so I can focus on other things (it's so time consuming). Good luck! :)
Amazing video as always! I am curious about the contract you make for your clients to sign, what all goes into that contract and so forth, is that something you can make a video about or share with me, as I am starting a bookkeeping business?
Thanks so much! It gives my hourly rate, and says that I'm an "at will" employee and either of us can cancel at any time. I've been a bit hesitant to share the contract publicly, as it's a legal document. But, if you google something like "legal agreement for independent contractors" that may be a good place to start. Having a lawyer look at it would be the most official, but I know that's not always in the budget starting out.
@Cheyenne hulit I would ALWAYS spend $150-$300 for a attorney read over it or provide one for you. That "small" amount of money can save you thousands down the road if anything could come to litigation.
Here's the link! Bookkeeper contract video: ua-cam.com/video/654O4AF2vR8/v-deo.html
So how do you do your self-marketing. How are you finding your customers or how your customer finds you?
Here's my vid all about marketing with my ideas! I also have a playlist about marketing/getting clients. ua-cam.com/video/v92DBK9dbLA/v-deo.html
Hello, Just curious has to how you would categorizes the amount you charge per client in their books?
Professional services
I am getting pro advisor certified through intuit QuickBooks. I am still struggling to see what the value a bookkeeper is to a business when QuickBooks does everything????? Am I not understanding something properly? Please help
I know what you mean--long answer, I'll try to make a video about this. :)
Also check out my video "client onboarding" where I go through one client start to finish.
I’m loving your channel, I just got my CPA and had a baby and I’m starting my bookkeeping business. I’m currently writing up a proposal for my employer to change my status from employee to contractor. It’s a big company, I’m thinking $3,500 per month. Currently I cost them $5,966 a month, but I do more than reconciliation. I’m thinking it would take me 50-60 hours per month. Do you have any advice on how to sell my services to them? I am the only accountant there.
I sure would like to hear what you decided to do. From my experience, contractor are usually paid more because of all the other expenses they have to cover on their own, including taxes and their own benefits. Just from what I read, it seems like you would be shortchanging yourself. I may not be understanding it correctly.
@@deyaonsotti9594 I thought the same thing honestly! I was like, so you're asking for less pay for more duties? What?? Lolol
@@tiffanyscavetta8097she said she costs them more as an employee. Maybe she meant because of the employment costs like liability ins., payroll taxes, etc. I would love to hear back from her here, though…
Thank you very much for the video. I am thinking about starting this business. Is it profitable?
Yes, absolutely :)
1-3% seems pretty low for bookkeeping rates. Is that just for bookkeeping? Not for payroll or AR/AP? I work in nonprofit bookkeeping for arts orgs and from my research we should be charging anywhere from 3-5% of revenue but that’s for nonprofit bookkeeping which is a bit more complicated with random performances and donations. We also do payroll, AR and AP. We do quite a lot. All their W2s and 1099s too. Could I schedule a paid consultation and get your thoughts on our rates?
Hey! Morgan is not currently offering 1:1 consultations. But Morgan does think that where you live, your experience, and what type of clients you are working with will effect how much you charge. We think you might like this video as well where Morgan goes into more detail on how much to charge clients: ua-cam.com/video/8A877-pVRKA/v-deo.html
Krista (FinePoints Admin)
I know someone that is an owner of his won Pest Control business that wants to hire me as their bookkeeper and I see the benefit of me only being a contractor instead of employee. Would they need to be set up as a employee since it's their business? Or does it still benefit them to consider themselves as a contractor? I'm thinking it's personal preference? What are your thoughts?
There are a few things to think about, first, are you talking about: should they be hired out as an employee/contractor (for their own customers). There is a quiz on the IRS website to see if you're able to be a contractor (do you make your own hours, have your own equipment, etc). My gut feeling is that a Pest Control business could be a contractor.
Or, were you asking if they should be set up as an employee in QB to get paid by their own business? This depends on their type of business (LLC, corporation, etc.). Most often for solo business owners, they are the "owner" and take "owner's draws" (equity account) to get paid.
Let me know if that helps! :)
@@FinePointsBookkeeping yes that helps so much, thank you!
If I get a basic accounting certificate, can I start out charging $60/hour?
The certificate would prepare me for bookkeeping for small businesses and accounts payable/receivable.
Towards the end of the video you stated if a company hires you as a contractor, they don't have to worry about you taking sick time. This may be a dumb question but if you're running your own bookkeeping business, do you never get any time off? What if you want to take a vacation and not bring any work with you. What do you do with all your clients?
Good question! Here's a video I made all about that :) ua-cam.com/video/hgVLWQdvsbk/v-deo.html
So can you work at any time you want? And roughly how long do you spend working per day at the beginning of the month?
And can you make a video discussing the different areas in bookkeeping you want to specialize in?
Yep, pretty much any time you want! Occasionally you many need to talk with a client on their schedule. I choose to work about 10 hours per week right now. I'd say that it's maybe 1 hour per client EXTRA for month end stuff... depending on how much you've been keeping up all month. Hope that helps!
Great vid idea, I'll add it to my list!
@@FinePointsBookkeeping This helps a lot thank you and I love this channel!