[peggyv]

Hey everyone,

I have a full-time job, just got my CPA in August and have my Masters as well in Florida.

Have about 5 years of accounting experience (only 26). I am doing side work after work and on weekends. Bookkeeping, 1040s, reconciliations etc.

Question is: is $30/hour too little? They originally wanted $22 but that seemed way too low, so I told them $30 to start and $35 after a few months.

What do you guys think?

Thanks!

BEC - 80
FAR - 77
AUD - 76
REG - 75

DONE, DONE, DONE!!!

[marqzho]

For a side work, yes it seems kind of low

REG 90
FAR 95
AUD 98
BEC 84

[mhueycpa]

I think you should charge based on the following:

1) Take your total package at your full time job and compute that to an hourly basis. Then add 10%.

2) Charge based on the service your providing. Bookkeeping isn't as specialized as Tax Preparation is and thus commands a lower hourly rate.

We have similar backgrounds except I am in NYC. Let's say for example my base salary, plus health insurance and year end bonus on an hourly basis would be $40/hr. This is what my employer pays me. Now remember “side work” is presumably S/E income, so your going to be paying the other almost 8% in FICA, etc. Thus I would charge, solely for my time a minimum of $50/hr. Be mindful though of your competition, in NYC for example you can search craigslist for “bookkeeping positions” that only want to pay $20-$25/hr. Thus, if I'm charging $50 for bookkeeping work I'll likely be priced out (luckily i've up sold people on the fact that I can do their books as well as stream line tax preparation (this justifies paying me double what they would pay someone else). However, tax preparation services are more specialized and thus demand a higher rate of pay. Since you have full time job and presumably your doing the side work for “Extra cash” (i.e. not necessary to meet pay bills etc.) does agreeing to work for $25 better then telling the client $35 and having them go somewhere else?

THE 300 CLUB WILL DO JUST FINE!

[Missy]

It all depends on what you'll be doing for them. We get so wrapped up in feeling we're worth more because we're CPA's that we forget it seems that our credentials don't dictate our rate, the market does. If it's very general bookkeeping (that frankly a high school graduate could do), payable and receivable stuff, I wouldn't ask more than $25-$35. If it's higher level stuff, bank recs and journal entries go up by about $10/hr. Really technical stuff, taxes and planning yeah at least $50-75. I volunteer tons of hours of bookkeeping a year for a few non profits and I charge other clients depending on the services they need. If they can get someone to do the exact same things for 1/3 the rate they're no longer impressed with your license.

Licensed Massachusetts Non Reporting CPA since 2012
Finance/Admin/HR Manager

[GHardesty]

peggyv,

Congrats on your second job. If your full time position is the same type of work (i.e. bookkeeping and reconciliations), and the side work is 1099 and not w-2, then you need to get your hourly rate and add a burden rate of about 20%, ballpark. That is for things like health benefits, the other half of FICA taxes, PTO that you would normally earn, 401(k) matching – basically the real cost to employee you now via your primary employment. Of course, you can't really do that if you are doing say, financial analysis and then on the side do tax prep work, because then you are not comparing apples to apples. However, the 20% burden rate added to your hourly rate through w-2 is just to get a baseline. If other people performing the same services pay less than, as was noted earlier by another post, you might get priced out.

Make sure your current company does not have any restrictions on moonlighting.

Regards,

AUD 80 05/31/16 (1x)
BEC 80 01/16/16 (3x)
FAR 78 11/23/15 (2x)
REG 87 02/29/16 (2x)

[peggyv]

Really appreciate everyone's insight! I think maybe within the next month I will attempt to request $40/hour given that I will be doing more than just bookkeeping, will be helping with tax returns.

BEC - 80
FAR - 77
AUD - 76
REG - 75

DONE, DONE, DONE!!!

[Author]

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