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Starting on my own

  • 26 posts
  • # 101773

Hi, I am looking to start up on my own, could anyone give me any advice and what do you normally charge for my services?

Thanks

Lesley Anne

  • 2 posts
  • # 101821

Hi Lesley Anne

 

I am also planning to start out on my own next year whrn i have completed the qualification, I plan to charge £15 per hour, I am based in the south east

 

Regards

 

Zoe

  • Member PM.Dip
  • Practice Licence
  • 746 posts
  • # 101825

Hi Zoe and Lesley Anne

 

Best of luck to you both. 

 

Zoe can I ask why £15 an hour on next years rates? If you are self employed you have your own Tax NI to pay, no holiday pay, all your overheads for software, telephone, computer etc, travelling costs if at clients premises. At £15 per hour you could end up working for less than the minimum wage. Is that why you set up your own business? 

 

No Zoe I am not knocking you honest, Im just trying to make you think, before you charge anything. A lot depends on what you are doing, who you are doing it for, how much responsibility you want etc etc. Kris on BPRP does some really good webinars on pricing. It does depend on where you are based, but dont sell yourself too cheap, or you will regret working for nothing and end up resenting the clients. I know you do see adverts on here for $15 an hour and less but some are employed positions so you get the holiday pay etc. You have trained hard so yes you do want more than the minimum wage for your efforts. Hope that helps. 

 

Very best wishes 

 

Elaine 

  • 1159 posts
  • # 103133

Thanks for the mention Lainy,

My biggest piece of advice is don't limit yourself to hourly rate.  People do it because they think it's easier but have a hard think about fixed price, or even value pricing if you can get your head around it.

I believe that everyone who has worked hard to get a qualification and paid a lot of money should be looking in the region of £30-£40 per hour.  It's very achievable if you get your ideal client right and really understand their pain and how you solve it.

Here are two stories to help you get your head around it:

The manager of a manufacturing plant who, unable to solve a mechanical breakdown, sent for the retired engineer who had installed the machinery. Following a brief inspection, the engineer took a hammer and hit a pipe which did the trick. The next day the engineer submitted a bill for $1,000 to a horrified manager. Above the protests at the charge for a solitary hammer-blow the retired engineer explained, “Only $1.00 of it is for hitting the pipe. The other $999 is for knowing where to hit it.”


Legend has it that Pablo Picasso was sketching in the park when a bold woman approached him.

“It’s you — Picasso, the great artist! Oh, you must sketch my portrait! I insist.”

So Picasso agreed to sketch her. After studying her for a moment, he used a single pencil stroke to create her portrait. He handed the women his work of art.

“It’s perfect!” she gushed. “You managed to capture my essence with one stroke, in one moment. Thank you! How much do I owe you?”

“Five thousand dollars,” the artist replied.

“B-b-but, what?” the woman sputtered. “How could you want so much money for this picture? It only took you a second to draw it!”

To which Picasso responded, “Madame, it took me my entire life.”

 

Kris


  • 2 posts
  • # 103144

Hi All

 

As I am currently employed full time whilst I start up my business on the side, I found out that it costs my employer £25 per hour to employ me including all their on costs (pension / NI) etc

 

I have recently got my first client and they agreed to a rate of £25 per hour, I am also a qualified accountant with CIMA so I think I am worth this. To be honest I may go down to £20 if required but only to gain clients to start up.

If people are so picky about price and do not value me then I dont really want to do work for them anyway.

 

The work has to be worth my time, and I need to cover my start up costs.

 

I'm interested in £30-40 per hour that Kris mentions, I guess it depends how complicated the work is.

I like the hourly rate for simplicity, but once I know more, fixed price may be achievable.

  • 1159 posts
  • # 103145

The work I do for £30-£40 per hour is the same work that everyone else is doing.  Basic bookkeeping, some final accounts, VAT returns and a bit of self assessment (though thats normally more than £40)

There's nothing magic about it.  I just take the risk the client percieves away from them.  They pay extra for the peace of mind.

Nothing rocket science about it really.

Kris 

  • 25 posts
  • # 103452

lainy said:

Hi Zoe and Lesley Anne

 

Best of luck to you both. 

 

Zoe can I ask why £15 an hour on next years rates? If you are self employed you have your own Tax NI to pay, no holiday pay, all your overheads for software, telephone, computer etc, travelling costs if at clients premises. At £15 per hour you could end up working for less than the minimum wage. Is that why you set up your own business? 

 

No Zoe I am not knocking you honest, Im just trying to make you think, before you charge anything. A lot depends on what you are doing, who you are doing it for, how much responsibility you want etc etc. Kris on BPRP does some really good webinars on pricing. It does depend on where you are based, but dont sell yourself too cheap, or you will regret working for nothing and end up resenting the clients. I know you do see adverts on here for $15 an hour and less but some are employed positions so you get the holiday pay etc. You have trained hard so yes you do want more than the minimum wage for your efforts. Hope that helps. 

 

Very best wishes 

 

Elaine 


 How do I find these webinars please?

 

  • 1159 posts
  • # 103456

Hi EJL,

Drop me an email at kris@ayrshireaccountancy.co.uk and I'll let you know how to access our whole range of webinars and a lot of other resources.

Regards

Kris

  • 61 posts
  • # 103491

Hi

 

I'm looking at setting up on my own in March or April after I've completed the level 3 and got my practice licence.

I'm going to be looking initially at £30 an hour and hoping to get it up to £40 an hour fairly quickly. Personally I have not spent time and money on getting qualified to enter a race to the botoom on charging. 

Most self employed people only do actual work for 50%- 60% of the time with the rest behind the scenece getting clients etc. Anything less than £30 an hour and I might as well go and work for someone else at £15 an hour and get all the bonuses such as holiday pay, sick pay, pension etc.

The local wage for a basic purchase or accounts ledger clerk in the area is about £18,000 with mid level bookkeepers getting £25,000 - £28,000. 

Kevin

  • Fellow PM.Dip
  • Practice Licence
  • 400 posts
  • # 103494

I agree with the others that you do not want to price yourself too low.  However I feel you shouldn't price too high unless you have the experience etc to back it up.  I agree with Kris that fixed pricing is the best way to go but other than payroll and tax returns which I do on fixed rates the actual bookkeeping I do is on hourly rates.   However most of my clients are regular but have peaks and troughs with the work so I don't feel the fixed rate would work on these clients. 

In my area the accountants tend to charge one amount for their work and about £30 for the bookkeeping work that needs done using in-house  so to compete at that rate would be very hard as they offer the full package. 

A lot depends on the type of clients you go for and the regularity of the work. 

Regards

Liz

  • Member
  • Practice Licence
  • 6 posts
  • # 103507

kjmcculloch said:

Hi EJL,

Drop me an email at kris@ayrshireaccountancy.co.uk and I'll let you know how to access our whole range of webinars and a lot of other resources.

Regards

Kris


 Hi Kris

 

Would you mind if I also dropped you an email?  I'm in a similar position to EJL & any assistance in setup would be much appreciated.

 

Regards

Cathy

  • 1159 posts
  • # 103509

Sure, feel free Cathy.

  • 25 posts
  • # 103510

kjmcculloch said:

“Sure, feel free Cathy.”

 Hi Kris,

 

i dropped per you an email last week but not had anything back yet did you get it?

 

  • 5 posts
  • # 107446

Look at what your competitors are charging. If you value your service then look to charge at least the same as them, if not more. This may cause an issue with some customers who are buying on price, but you can trade off the fact you are 'reassuringly expensive'. Stress your qualifications and experience and you will get the right clients. 

  • 61 posts
  • # 107447

The other thing to remember is that those businesses who buy purely on ptice also tend to be those businesses that you will spend more time on chasing for your fees to be paid.

My experience in business is that those who are always trying to push you down on price also tend to be the ones who keep delaying paying you - which also adds to your cost.

I know whenever I take quotes for services or goods I need I always disregard the bottom 10% and the top 10% and then look at what is on offer from the middle ground as that is where your get good value.

Being too cheap could mean you don't even get considered by a lot of businesses.

 

Kevin

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