Many freelance bookkeepers struggle with pricing their packages of services. That’s because it’s challenging to accurately estimate the time needed for your quality of accounting services. This can be especially hard when you’re working with new clients.
This is something I struggled with as well. Sometimes after I gave an estimate for a project, I would find the time I budgeted blown out of the water within the first week because of bookkeeping issues I didn’t know even existed.
I would then go back and forth with myself debating whether or not I should tell the client. I felt I had provided them with an estimate and as the professional I should be able to estimate properly. Well, I’m here to tell you that’s hogwash!
There are times when it is just impossible to predict the additional challenges with a new client account until you are in the middle of the clean up. It is just a fact of the freelance bookkeepers’ profession. That is why it’s important to add a caveat to your project service agreements.
When you give your estimates to new clients, put in writing in your service agreement (and inform them verbally) that the estimate is based upon the initial consultation and a specific number of hours. Now you might be thinking, “Isn’t that trading dollars for hours?” and this is something I don’t generally recommend. However, you do this to protect yourself from not being properly compensated and you do it in a way that focuses the client’s attention on the value not the hours.
So whenever you began working with a new client, you need to keep them focused on the results that the project will deliver and indicate that the price is associated with a specific number of hours. So if you exceed the hours by 10 percent, they’ll be charged an additional fee at a specific rate. If you are under the hours estimated by 10 percent, they’ll receive a credit or refund.
You have to be willing to go both ways with this. If you want more money when you’ve underestimated, you have to be willing to give them a refund if you’ve overestimated the project. It’s only fair. It’s what will set you apart from your competition and you’ll be paid for the value of your freelance bookkeeper services.
If you’d like more tips on establishing a pricing system for your freelance bookkeepers services, check out How to Charge What You’re Worth and Get It! You’ll find a proven system that really works!
