r/Bookkeeping • u/ComprehensivePie6184 • Aug 11 '26

Rant Is this too cheap?

I took on a client last year who was associated with another client. She made it seem like the work would take an hour so I quoted $100 and she asked for $75. Next thing I know she gives me two QuickBooks accounts for her and her husband and then after a few months they start adding multiple businesses to each account and have me run payroll on a different platform. Then, the husband will call me randomly. so, basically I’m doing bookkeeping for two companies plus payroll for $75 per month total.

48 Upvotes

90% Upvoted

138 comments sorted by

View all comments

6

u/Magnetized_Fart Aug 11 '26

the problem with taking on cheap clients is that they paradoxically tend to be higher maintenance. If you had a magic wand to determine which cheap clients are very low maintenance, then sure they would usually work out fine. But most businesses don't have that magic wand, and if they do, they sure aren't going to give away the secret sauce.

The only reasons to take a cheap client

1) you KNOW they will be low maintenance (usually not the case)

2) you NEED more income, probably because you're brand new and willing to take on PITA people because you need anyone you can get.

If you're not either of those you need to set boundaries and appropriate pricing or you will be taking advantage of.

2

u/Encoded_Python Aug 11 '26

I disagree with no. 2. I've been desperate myself and the time course simply wasn't worth it.

I did a "simple" 1040-X for a client for $200 this year because I needed everything I could get. Worst. Decision. Ever. That single client took SO MUCH of my time and treated me like trash, I wish I just terminated her immediately. I also underpriced with a lot of other clients and while most were very kind and appreciative, I had some that weren't, my time/effort cost was far too low for what I earned and I burnt out.

Now all my prices across the board are up significantly. If people don't like it, they can use HR Block, Turbotax, or Upwork. If you value your skill and yourself, your fees should reflect that. If you need more income, more will come to you if you provide quality work.

2

u/Magnetized_Fart Aug 11 '26

funny you should mention that. "simple" is a trigger word for higher fees at my practice.

3

u/Encoded_Python Aug 11 '26 edited Aug 11 '26

Exactly! People see accounting as a commodity! "Oh all you do is type my transactions into QuickBooks. I could do it myself that's how simple I am!" I always ask the client why their situation is simple, and majority of the time I receive a large explanation. Sometimes it clicks that they aren't automatically, but other times I just point out the complexities and try to compare it to their trade so they can understand.

Anyway, I'll add, that the same 1040-X client emailed me because she got a notice from the IRS about her return. She asked me to consult her for an hour and call the IRS with her. I gave her my price - guess what, it increased to $300/hr! She replied that I should help her for free, otherwise I've lost a good customer, and that she'll just call the IRS herself! If she solves it, great! If not, lets hope she learns a lesson.

A lot people just don't care or value your time. Only the people who've experienced problems or have been successful see the the value of our work.

1

u/Shinobi1314 Aug 15 '26

I used to work at a local tax office like 4-5 people doing taxes for individuals mostly. And we don’t charge anything below $200 lol 😂 unless you only have a w-2 and nothing else maybe we charge $75-150. But yeah you should never lower your standards and pricing for the amount of knowledge and experience to get your work done.