Client looking for additional services.

[mrichman333]

I have a Schedule C contractor that I do taxes for that would like me to do payroll and

bookkeeping for him as well. I’m more than happy to do it, I’m just not sure how to set my

pricing.

Was thinking of x$ per transaction to start to get a feel of time involved Example recording 60 check transactions… 60 X $ =

Any Suggestions?

[Tax Prep by Deb]

I quote an hourly rate to begin with. I have a monthly minimum so that I can allocate at least that much time to the client. I tell them that after several months at the hourly rate that I will then

set it to a monthly rate (helps them budget and helps me budget as well). Then as their business picks up and starts to generate more paperwork (or in the case of an established business who begins to grow) we will re-evaluate pricing down the road.

As for payroll, I charge a set fee per paycheck generated, then a set fee for the quarterly, a set fee for each W-2 and 1099 and a set fee for annual reports. I know my pricing is too low, but I've never had to look for work and my bookkeeping clients are great!

I only have one that gives me a little problem and it's simply because he is extremely busy and slow about getting me the work on a monthly basis. Last year he piled it up towards the end and I'm still not done so therefore his taxes are on extension. He's not happy about that but understands he created the problem, not me.

Deb!

[Terry D EA]

I charge an hourly rate for preparing paychecks and bookkeeping. I also charge a fee for preparing and filing the quarterly payroll taxes. It is hard to compete with the big boys regarding payroll so I try to keep it as low as possible. I have lost a few to ADP and Paychecks.

[mrichman333]

I charge an hourly rate for preparing paychecks and bookkeeping. I also charge a fee for preparing and filing the quarterly payroll taxes. It is hard to compete with the big boys regarding payroll so I try to keep it as low as possible. I have lost a few to ADP and Paychecks.

I was looking at ADP pricing and others, very hard to compete unless you have large volume

[jklcpa]

I charge by the hour for bookkeeping. The monthly fees are pretty consistent from month to month for any given client, but every so often there will be additional amounts for worker comp audits, bonus calculations, whatever else a client without a bookkeeper might come up with that he/she doesn't want to do.

I don't offer to process payroll because it would be hard to compete on price, and I don't want to be tied to a client every single week or two weeks. Unless you have staff that would handle the payroll processing, then you must be available when the client calls in hours and earnings. And then you have to be available when that client has made mistakes calling those in after the payroll is run and delivered and needs to be corrected. How would you handle your vacations or other times that might make you unavailable?

Most of my clients have outside payroll processing with availability of direct deposit, cafeteria and retirement plans where the deduction/contribution is managed by ADP or Paychex.

[Janitor Bob]

I had a client offer additional "services" if I would include a Hope credit on her return for her college expenses (even though it was already claimed on her parent's return)....but I think this a different topic.

[Guest Taxed]

Different strokes for different folks. In my neck of the woods it is extremely competitive (lots of out of work accountant and bookeepers).

I will ONLY Do if I am also preparing their business and personal tax returns. No exceptions there.

For under 6 employees it is $100 per quarter including filing. 6-10 $150. Will not do over 10 because I don't have staff during summer.They must have quickbooks or compatible software that will accept my download so they can cut the checks. I will not cut checks. I will provide W2 and 1099.

Also time cards must be sent electronically in a format that I give (This usually work out most of the time).

Additional hourly rates will apply if I have to do extra if they do not follow the format.

[Guest Taxed]

I had a client offer additional "services" if I would include a Hope credit on her return for her college expenses (even though it was already claimed on her parent's return)....but I think this a different topic.

That is one hope with a lot of credits!

[mrichman333]

Different strokes for different folks. In my neck of the woods it is extremely competitive (lots of out of work accountant and bookeepers).

I will ONLY Do if I am also preparing their business and personal tax returns. No exceptions there.

For under 6 employees it is $100 per quarter including filing. 6-10 $150. Will not do over 10 because I don't have staff during summer.They must have quickbooks or compatible software that will accept my download so they can cut the checks. I will not cut checks. I will provide W2 and 1099.

Also time cards must be sent electronically in a format that I give (This usually work out most of the time).

Additional hourly rates will apply if I have to do extra if they do not follow the format.

$100 a QUARTER!!! with tax fillings and payments sent?

[mrichman333]

I had a client offer additional "services" if I would include a Hope credit on her return for her college expenses (even though it was already claimed on her parent's return)....but I think this a different topic.

to funny

[jklcpa]

$100 a QUARTER!!! with tax fillings and payments sent?

That was my reaction too. With up to 6 people on payroll and if they are paid weekly, plus the deposits and filings? That's a lot of work for the little you are charging!

[mrichman333]

That was my reaction too. With up to 6 people on payroll and if they are paid weekly, plus the deposits and filings? That's a lot of work for the little you are charging!

Maybe it's a month plus quarterly fillings

[Ray in Ohio]

I had a client offer additional "services" if I would include a Hope credit on her return for her college expenses (even though it was already claimed on her parent's return)....but I think this a different topic.

and here I thought the client was "wanting" additional services. I think you misunderstood the title. Your client was "offering" additional services. (just sayin).

[Guest Taxed]

Maybe it's a month plus quarterly fillings

Yes I know it I am charging too little for the work. BUT there is a reason to this madness. I will ONLY do this if I am also doing their business and personal returns. This economy has taken a real toll on the small construction and related services. Folks are doing anything to save a buck.

Last night did the return for an excavation contractor and it was obvious that the repairs, depreciation and fuel cost alone eats away at any profit!

Keeps the competitors away. As I said we have a lot of unemployed accountants and bookeepers collecting unemployment and doing this on the side. They will quote rates that are bizzare and unfortunately once they get their hooks in it is difficult to peel it away.

[mrichman333]

Yes I know it I am charging too little for the work. BUT there is a reason to this madness. I will ONLY do this if I am also doing their business and personal returns. This economy has taken a real toll on the small construction and related services. Folks are doing anything to save a buck.

Last night did the return for an excavation contractor and it was obvious that the repairs, depreciation and fuel cost alone eats away at any profit!

Keeps the competitors away. As I said we have a lot of unemployed accountants and bookeepers collecting unemployment and doing this on the side. They will quote rates that are bizzare and unfortunately once they get their hooks in it is difficult to peel it away.

Taxed, what state are you in?