Referral Fees

What type of business? CPAs and refferal fees are a NO NO!

Their focus is less on accounting and more on financial consulting/planning. It's an interesting setup where they provide business consulting and want to turn over all QB (financial and POS) setup/maintenance. The three we've talked to so far have been well qualified. I don't have an issue with a referral fee but we have very different approaches (and ultimately $$).

On your question about referrals. I believe the general rule is 10% of the monthly invoice if they become a client, I think the same is true of one time clients (set up) as well.

This is kind of off topic. I have received a referral from a local CPA firm to set up and train one of their clients on Quickbooks. My dilema is that I am unsure of what to charge for this service. This would be my "first" training service. I usually just provide bookkeeping services to small businesses. Any ideas?

Judy

Hi Judy

I'm not sure if you feel comfortable telling what your bookkeeping rates are, but (here in Southern CA) I charge a "regular" rate of $150 for setting up a new company, and if they need some ongoing help usually I discount the price to $99, with training the Client or Office Personnel at $35 per hour. Also, I give my Clients some extra time in our sessions so that they feel they have a good value.

The rates probably vary in different cities or towns.

What do you think?

CDX

Your pricing seems to be about right for my area (Seattle).

My "normal" Bookkeeping fee is based on the type of services they need. It ranges from basic bookkeeping at $25-$30 per hour depending on company size, amount of work and if there is any "catch up" to do... to payroll, financial reports ($35- $75)up to tax prep at $150.00 per hour. All of these prices vary if I am doing the work from my office or if I need to do the work in theirs.

Thanks for your input CDX.

Judy

Hi Judy

You are welcome. Once again, if you'd feel comfortable in sharing info, I'd be interested to see a breakdown of rates as you put in your last post, especially for the Financials, etc. And, when you do Tax Prep, is the $150 rate for when someone is a "shoebox" Client, and you have to build a file from scratch?

I charge about $40 for a Sales Tax Return, but I've seen prices from $37.50 to $75.00 or more when a CPA does it for Clients.

Happy Seattling up there. My twin brothers lived in Kent for years! Love the area!

CDX