Why Bookkeeping Rates are Higher than Wages
I sent this reply about bookkeeping rates to a LinkedIn forum for bookkeepers and thought that it was so relevant that it deserved a post here too.
When you hire an employee you pay for their hours and you get what you pay for.
Employees rarely considers themselves to be in partnership with the owner. That is to say they are not personally invested in the success of the business. Primarily they are there for job satisfaction and the hourly wage.
An independent bookkeeper on the other hand should function as more of a “partner” in that she is invested in the success of the business. It is important to get to know your client’s needs, fears, problems and hopes for the business. As independent bookkeepers we should learn about the industry that the are in and how that industry is performing, what issues it faces. Then we should make sure that we offer information and advice that can help our clients to attain their business goals.
For example, if you have a client who owns a restaurant you might want to look at the information reports from RestaurantOwner.com where you can find industry averages and information on how to manage inventory costs (a big issue for restaurants).
Rather than just data entry (that is how our clients see it) and statement preparation, we should help our clients to understand what the statements are telling us about the business and its future. We should give advice on tax planning and cash management.
If needed we could even provide advice and assistance in areas of human resource management — an area where many entrepreneurs experience problems and frustrations.
By learning about our clients and looking at their numbers, we can offer advice and suggestions that could be of help to them. I think that we need to be more proactive in providing these kinds of services. This will differentiate us from an hourly employee and prove the value of what we offer.
Categories: For Bookkeepers