How do you calculate the rate? Take your hourly rate times the amount of time you believe it is taking you each month and add a little more on top of that for added expenses. Are you covering their QuickBooks subscription? Will you need equipment updates on occasion? One thing to note as you’re deciding on a fixed rate is to think about the expenses to keep their books. By then you will have figured out just how long it will take on a monthly basis to keep their books current. It will be more work upfront, so you can bill more upfront.Ī few months down the road, once you’ve immersed yourself into their business, have their books organized, and have a steady flow, you can switch your client to a fixed monthly rate. You may be helping them play catch-up to get organized not only in the current year, but also in previous years. Starting with an hourly rate with a new client is beneficial because usually it will take more time to get their books set up, as they could have been quite a mess before you took them on. Many times you’ll be discovering things about the business as you get to know your client, and you may even find some issues your client didn’t know were there. It’s really hard to figure out what to charge someone without actually doing the work and finding out how much time your client’s account will take you each month. What I recommend when you’re starting out is to begin with your hourly rate and transition your client into a fixed monthly rate.
In an ideal world, I’d have a handful of clients, I’d work two days a week, and I would have them pay me a set amount up front with automatic payments so we both know what to expect each month. Right now my goal is to have all my clients on a fixed-rate pricing scale.