I Love Bookkeeping

When should you use fixed rates versus hourly rates for your bookkeeping tasks? In today’s episode, co-hosts Hannah Robinson and Melissa Honan explore the pros and cons of flat-rate pricing versus hourly billing - and which payment type works best for a bookkeeping business. Melissa starts the conversation by highlighting the difference between paying an hourly rate versus a flat rate and what the law says about it. For Melissa, all new hires should be paid a flat rate until they get accustomed to the core business processes. When working with subcontractors, Hannah believes a fixed rate will get things done faster than an hourly rate. Melissa goes through the benefits of setting a fair rate for both the employer and the employee. Hannah reveals how hourly rates are mostly influenced by the economy and the demand for skilled labor. According to Melissa, one of the main benefits of hiring full-time employees is they only have to worry about production quality and not putting in as many hours as possible. Meli