From $25/hour to $185/hour – Part 3 – The Sheer Numbers – What You Charge and What You Can Earn

SOB FacultyPractice Development1 Comment

How do you get from $25/hour to $185/hour?

To start with it takes time. You build by taking on new clients and with those new clients you take on new challenges. Through these experiences you keep learning how to do more than you could before. We created schoolofbookkeeping.com to help make that happen much faster. The more skilled you are the more in demand you will be. Then as the demand for your time increases, so does your rate.

“When you are busier than you want to be then it’s time to raise your rates.”

That was what I learned from one of my #1 mentors, Barry Goldstein, CPA. I was complaining to him that I had no time and that I was tired of clients asking me for things and expecting to jump on them right away but when it came time to pay me the same urgency wasn’t there. That was when he told me it was time to raise my rates. Most likely he said I would lose clients I don’t want, work less, and earn more money. He was right. When I started charging $55/hour that was when I noticed a marked difference in the caliber of clients I attracted. They were bigger companies who didn’t balk at the rate and who also seemed to value my services much better. I was spending less time chasing people for money and more time just doing the work I loved and getting paid better than ever for it.

Meanwhile I have frequently spent time looking at the numbers in some more detail. This does a number of important things:

  • It’s like a numeric vision board – this is where I want to be.
  • It’s a reality check – it helps you see if you can reasonably produce the income you want based on the rate you are charging.
  • It’s fun. Using Excel is one of the most important skills that will raise the value of your stock in the eyes of your clients. Most people who say they have a lot of Excel experience turn white when you ask them about pivot tables. The more you play with it, the more you learn and this is a great place to start.

We will soon launch a course on this content at schoolofbookkeeping.com. Please comment below any thoughts you may have on the matter so we may include them in the content.

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