How much for part time accounting work for start-up

[Oddball]

A family member is a private accountant (working for a NFP). They have around 15 years experience in private accounting, 3 years in public accounting, MSA, and is a CPA.

Their sister approached them about a bookkeeping opportunity (combined with some process improvement and possibilities) with the start up she works at. It's very part time - she's thinking maybe 5-10 hours a month - and they have an interview with the CEO tomorrow. They need to come to the interview with an hourly rate in mind, and she told me not to sell myself short. That said, they have no idea what to charge. What's the going rate for someone with a roughly their level of experience? Their 9-5 salary is $95k. This will be 100% remote work, they are based in Chicago and the company is in Maryland.

Also, anything to ask the CEO in the interview?

Thanks!

[Parkinglotracer]

Internet says between 150-400 an hour. One rule of thumb is 3x minimum your hourly salary. I’d start with asking them what $$ they have in mind. They may expect to pay more. I’ve seen articles that say cpas are in short supply.


What liability do you have if you do this …. Do you need liability insurance?

Call and find out what hiring one yourself will cost to gain knowledge on market for your services. I’d ask ceo what they have used in the past if they have used one, what services they were not getting, how long this arrangement will likely last.

[Target2019]

Professional insurance is recommended.

Also, there may be a prohibition against this in the primary job's employment contract.

Some thoughts to consider.

[fabdog]

It's very part time - she's thinking maybe 5-10 hours a month

In addition to the very wise counsel on liability insurance, and making sure it's allowed at her current job, she needs to set clear boundaries and expectations on what they need and what's required. She'll be amazed at how quickly these things can become a time sink as the startup has lots of to dos... Bookkeeping one thing to scope.. process improvement... that needs to have some thought put into it

Mike

[2ndgen]

I would make sure you understand the investor profile, debt situation, and plans for future capital raises. All of those can have different levels of reporting requirements. Many of them can be extremely time consuming.

Also, understanding the current situation at a startup is important. If they have done little to nothing and you have to build an accounting function that’s a much different ask than picking up something that is well established.