Bookkeeper hourly rate
Bookkeeper hourly rate – Sometimes the question is asked “ what is your bookkeeper hourly rate”.
I think a better question the client should be asking is “ how much will it cost to do all my bookkeeping and accounting work per month”
You may be quoted a lower bookkeeping rate but the person might be so slow in doing the work that it turns out to be much more expensive for the job to be completed.
We come across this several times when we are asked to supervise the client’s own bookkeeper to complete the vat return or prepare management accounts.
The client sometimes think that money will be saved if they employ a general bookkeeper to do most of the data entry and then employ the services from a professional company such as ourselves to finish off the accounts ready for the submission of the vat return or for the handover to the accountant at the year end.
We often find the standard of competence is very low and because of their limitations in double entry bookkeeping, they take far too much time and still make lots of errors.
The cost to the client at the end of the month for the amount of work produced is more important than what the bookkeeper hourly rate.
Call us at 020 7788 7744 for a free consultation.
Off-Site PBS Dedicated Sage Expert Bookkeeper.
On-Site PBS Dedicated Sage Expert Bookkeeper.
What to look for in a bookkeeper
For a start a bookkeeper should be good with figures and be meticulous in their work, paying attention to details. This is the minimum requirement , then to have an understanding of double entry bookkeeping.
To have studied bookkeeping and more importantly to have built up some good years of experience.
Experience is the most important aspect. I have spent many a year looking through CV’s with this diploma and that qualification and when I test the person in practice, they fail miserably.
To be a very good bookkeeper , you must also be the type pf person that always looks for a solution to the situation. There always instances that something has to be done slightly differently, maybe because of the restrictions of the accounting software which will not allow a transaction to be processed in the normal way.
With good experience comes confidence and if you naturally the type of person that looks for a solution, the so called problem is solved
I always like the expression I heard many, many years ago when I got started as a trainee accountant and that is “ A problem is only a solution in disguise ”
What roles does the bookkeeper play in the completion the accounts
The bookkeeper will complete certain functions such as :
- Entering all the purchase invoices on to the accounting software. ( such as sage line 50 )
- Entering all sales invoices
- Posting the payments and receipts
- Reconciling the purchase and sales ledgers
- Bank reconciliation
- Petty cash entry
- Credit card entry
A more experience bookkeeper will also do :
- Control accounts for paye & nic
- Takings control a/c
- Vat control a/c
- Produce a trial balance
The bookkeeper hourly rate is less than that of an accountant , so the more the bookkeeper does, the
cheaper it is for the client.
Bookkeeper hourly rate versus fixed fee
It has always been our practice to charge a fixed fee , a benefit to the client , the client knows from the outset what the bill is going to be. No surprises that it took so many hours at the bookkeeper hourly rate . This then may increase in the following month and the client starts getting nervous as to how much the bookkeeping is going to cost at the end of the year.
Much better to have a fixed monthly fee, the annual cost is known in advance and the client is more comfortable with the cash flow.
We have different fixed fees for the client with an average turnover of some £2 million and the small client with sales around £20,000 pa
We are able to quote a fixed fee based on our experience of how long a job should take. How much work can we produce in that one day or in the case of our smaller clients, how many hours necessary to allocate.
£15 to £20 per hour – freelance bookkeeper
£20 to £40 per hour, depending on experience, – bookkeeping agencies
No , it is the same quality, you will reach the same person who has registered with an agency or replied to your adv in gumtree
The agency is only interested in their commission and will send you anyone on their books even if they are not suitable and do not meet your requirements.
In short , a different level of professionalism , much more experienced , much more likely to meet your expectations , much more reliable and yes more cost effective .
Better to pay a higher bookkeeper rate but get the job done at a lesser total fee. Plus at a higher standard.
If in doubt , you can always ask your accountant to have a chat with your new appointed bookkeeper
Another advantage with us, we have a good relationship with our client’s accountants and have met many times over the years to hand over the accounts at the end of each financial year end.
Yes in the same way firm of accountants recommend us to their clients , we reciprocate and recommend clients to them..