How much to bill for software development

I

insom

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Hi,

I'm doing some work on the side for a friends company. They needed some software done to automate some of their more repetitive processes. For now just a C# Windows app, but theoretically move it to a website and database to track stuff later. They're just getting started and don't have alot of cash to blow on a development house or hiring a full time developer.

How much do you think is a good price? Per hour? One amount on delivery?

I've always worked for the companies I've developed for directly, so I have no idea how the "freelance" type billing should work?

And how does this affect the SARS stuff? Do I need to declare it? Only if its above a certain amount?

Any advice would be appreciated!

Thanks!
 
As far as the SARS stuff go, you have to declare your total earnings from all employers.

EDIT: provided of course that total amount is above the threshold value. And since you are a developer I doubt you are below that value ;)
 
Software is expensive. I reckon you get a spec of what they need, get it signed off on a piece of paper and charge an amount for it. They will probably need to reduce the scope to fit their budget. After that when they have some more funds they can come back to you to develop "phase 2" of whatever they need.
 
The biggest hint would be to make damn sure the project/phase scope is well defined, especially if you give a fixed price. The next hint would be don't give a fixed price. Quote per hour with an estimate of hours for the project.
 
Thanks for the advice guys. Somehow I think R400k is a bit steep though. :)

I will have to have a proper meeting with them sometime to get it all on paper. I've already given them a "phase 1" just because they were struggling without it. They just don't have the manpower to sift all the data manually every month.
 
Since you say it's a friend's start-up company, I'd charge R400 per hour and scale this up as they grow and their needs become more complex. Grow with them.
 
hey, not sure what C# developers get, so can't help you there, but in terms of SARS, you need to be registered as a provisional tax payer (if you aren't already). Then when you fill in your returns, at the top of the form you need to state that you have other income to declare. It will then create the form with the other income fields included, where you declare your income and expenses. Freelancers generally charge an hourly rate. Even if you give them one amount - which would probably be fair on them - work it out based on an hourly rate..
I would also check if your employer is happy for you to do work on the side - better check your contract..
 
efitol said:
Since you say it's a friend's start-up company, I'd charge R400 per hour and scale this up as they grow and their needs become more complex. Grow with them.
Click to expand...

+1 You should bill per hour. Above rate seems fair as a start.
 
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