Why do I not quote fixed fees?
More often than not, if you go for fixed fees for bookkeeping then you will find that the service provider will look to build in
contingencies (final accounts and tax returns are a little bit different where you can set a fee if the client provides the
right information at the right time).
This may include situations where information is missing or not forthcoming at
the right time, such as missing bank statements, lost bills, cheque stubs not filled in and
a whole host of other problems which may occur when running a small business.
The well organised client would not expect to pay a premium to cover the mistakes of the
bookkeeper's other clients, so the fairest way to provide bookkeeping services to trial balance
is to charge by the hour.
In all cases, I will submit your VAT Return (if applicable) online as required by
law.
I will print out/email/send you a copy of the Return so you may remit any amount
due to HM Revenue & Customs, by your preferred method of payment (or refund if applicable).
Unit of charge
I charge bookkeeping and management accounting fees at
£ 20.00 per hour
Visiting
I am happy to visit your premises, and there is a call out fee for on
site work or pick up and deliver, to cover my time
and travelling expenses.
The fee for this is £ 15.00 within a reasonable radius of my Harwich office (say 40 miles).
If you are further than this and still need my help then I can still assist with my postal service,
combined with appropriate e-mail options.
- I visit your premises and use your own equipment.
- I visit your premises and use my own laptop, printer and software to enter your transactions.
I then print your reports (VAT Return and audit trails) for your own records.
I will then submit your VAT Return online using my mobile broadband.
- I pick up your documents, process them and send them back to you with your
reports (VAT Return and audit trails).
Postal service
- You can post your documents to me (in your own envelope, by FREEPOST - no stamp required)
- I process your documents on my system
- I print out your reports (VAT Return and audit trails) and send them back to
you with your documents.
I now have a Freepost facility, which will allow you to send
any paperwork or documentation to me without worrying about using a special reply envelope
or getting a postage stamp. You simply use any envelope and prefix my address with
the word "FREEPOST" and my Licence number.
The freepost option will not cost you any extra.
My Licence number will be given to all new signed up clients when necessary.
Year End Accounts
Subject to your instructions, I shall prepare a year end pack for your accountant
which will include all your results up to Trial Balance, together with all necessary
reconciliation schedules.
If I process your documents away from your premises, then I shall need to collect your
banking transactions just after your year end so that I can bring your books up to date
in readiness for your accountant.
Invoicing and Payment
As fees are by nature my salary, I do ask for settlement of the bill on
presentation. Fees are not subject to Value Added Tax
I prepare my bills weekly and will send/email them to you.
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Paying a professional to get the job done right is always cheaper in the long run.
Red Adair once said "If you think it's expensive to hire a professional to do the job, wait until you hire an amateur."
I'm not suggesting that you hire me to put out oil well fires but I can help prevent you from
falling foul of the law.
If the books are not kept correctly, then there could be problems with HM Revenue & Customs
for both VAT and income tax purposes.
If your present accountant/auditor has to spend a lot of time correcting mistakes and
looking for missing information then of course it is costing money at the accountant's
rate per hour, which is much more than the bookkeeping rate.
Professionally kept books typically cost about half the money it would cost for
poorly kept books, which is not a bad reflection on the the person trying to keep
the records. It is a fact of life that each of us do some things better than others
and our individual skills make the world turn around.
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