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05/24/2012 at 04:51PM PDT
Important Announcement! A planned system-wide upgrade will take place over the Memorial Day Weekend in the US (From Thurs, May 24, 2012 at 6 pm PDT thru Tues, May 29, 2012 at 5 am PDT). This includes QuickBooks, QuickBooks Payroll, Point of Sale, & Salesforce.com. This is only for US based products. This does not affect QuickBooks Online customers! During this time, you can shop, but can’t place orders online, activate products or update account info. We apologize for the inconvenience & thank you for patience while we improve our infrastructure to better serve you. International versions are unaffected. For more info, see our community discussion.
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RoseL
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08/04/08 7:24pm PDT

Is my bill reasonable for services provided?

I'm a rather newly Certified QuickBooks ProAdvisor. I started my bookkeeping firm in Jan. of this year.A few weeks ago, a new client was referred to me by way of the VP of my local bank. The new clients had such a mess! Two companies. Comingled funds. Continuous shareholder distributions with no "reasonable salary," and the list goes on... yet their new store was set to open last Fri., which it did.Long story short- they knew my hourly rate of $50 up front. I've met with them four times in about three weeks. I've setup their over 2k list worth of non-inventory items. Since they didn't have a local CPA and the hubby needed a rather firm talking to from a CPA re: how to take money from the business, I brought in a CPA, per the clients' okay. The CPA reviewed my work and said all looked great.Well, I've added up all my time and it's about 1k at this point. This includes reconciling bank statements from April through the present. All meetings. Setting up all inventory items, accounts, classes, and ensuring transactions were expensed properly, etc. I also setup their personal banking with Quicken and setup their online banking for QB. I know the numbers don't lie! To all you gurus out there- based on the limited info I provided, do you think my about 1k invoice is in alignment with the services I've outlined? I'm asking, as this is the most amount, to-date, I've ever billed at once! Basically, they called me in urgently to clean up their mess and setup the books for this new biz operating as a DBA. Now that I've done so, they're going to try and maintain the books on their own. Another case of small biz owners knowing not enough about accounting, but thinking QB will make all seamless.

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08/05/08 7:58am PDT

I think it's very reasonable (and you aren't too far from me geographically). I usually try to be upfront with new clients about the fact that it almost always costs more than what they expect, and sometimes more than what I expect (because of what you find under the "rocks" you are picking up!). You will get more of a handle on this as you build up your QB practice.

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08/05/08 8:43am PDT

Thanks for your response. Unfortunately, I couldn't tell them up front how many hours I thought it'd take to get them straight.

For instance, they originally told me they'd have nowhere near 14,500 items. They stated that they had a handful of lists and some fabrics that didn't total but about 2-3k or so. However, two weeks into the project, I finally received the fabric spreadsheets, and they contained thousands of items--many of which would never be purchased by clients. This easily amounted to well past 14,500 items. We're talking almost 100k items!

I advised them that they could either- 1) upgrade to Enterprise Solutions or 2) simply add each fabric as it's selected and purchased by clients. They chose the latter, wisely, I must add.

One trip I made to meet the hubby to help him setup Quicken on his Mac. Well, that didn't work out, as his bank had his personal account under the business. So, it was a wasted trip; however, I'm still charging for it. During a later meeting, I finalized the easy setup after the bank had fixed the online banking issue.

So, this is part of why I asked. You know, there's no accounting for these things. I do create highly-detailed invoices, and I'm not charging them for the initial meeting.

You're absolutely right- as I gain experience, I'll be able to better provide an estimate of hours up front. Except, I'm really finding that clients have no clue about accounting, let alone QB. Everyone tells them QB is soooo easy, so they think they can do all. Every single one of my clients to-date has also been especially not well-informed on how to use computers. It gets frustrating at times.

I'm meeting a client after work today, because she couldn't figure out how to start the remote desktop on her machine! After I re-walked her through it via phone last eve!

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08/05/08 9:19am PDT

In situations like yours, I would suggest handling it the same way you vote: bill them early and often.


If they are going to balk at some point, you would probably rather they do it on a $300 fee bill than a $600 fee billing.


Scott

Scott Bonacker CPA
Springfield, MO

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08/05/08 10:47am PDT

Very wise, indeed! Hopefully, my invoice amount won't be an issue. In the future, I believe I'll tell clients something like, "I have about x-amount of hours into this project, thus far." Or something like this. This is my first "big" proj.

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08/05/08 4:11pm PDT

You may want to consider weekly billings in cases like this. You can also tell them that you will stop work if any invoices are not paid in 1 or 2 weeks. This will keep you from putting a lot of effort into a project where you won't get paid.

Another option is to require a deposit for messy, complicated projects like this. A $500 deposit would be reasonable in cases like this. Tell them that the deposit will be used to settle the final bill with any unused portion refunded to the client. If you combine this with the above suggestion then you really have a good method of ensuring that you do not have too many hours for which you will not get paid.

Finally, always use an engagement letter that spells all of this out. The client should sign the engagement letter indicating they accept the terms before you do any work. The engagement letter will help you if there is a dispute as to what you were to do or what the client would be charged for.

Will

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08/09/08 8:53am PDT

I agree you should always have them sign an engagement letter. I took on a client in early July who is being audited by the IRS. His wife has manually kept his books, but fr some reason every tax return he has filed has gotten audited. When I visited him and saw the amount of files and paper for 2005 I immediately began calculating in my head the amount of work I was in for. I had him sign the engagement letter and pay a 25% deposit. His remaining balance for 2005 was due once I finished 2005 and before I began 2006 work.

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08/10/08 1:28pm PDT
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Sounds like the type of client that needs hand holding. I'd may monthly visits to him.

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