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Edmonton Accountant | Small Business Accounting Fees
One of the challenges that business owners have in hiring accountants for their business, is not knowing what is a fair price to pay per month and per year says Edmonton accountant. They don’t know how the fees are structured, and what to expect from their accountant for those various prices. This ends up where the business owner doesn’t hire the best accountant for them, and end up getting inadequate services. Inadequate services will cost business owners far more than just the accounting fee.
By understanding how accountants charge for the services that they provide, business owners can choose accountants whose price structure makes the most sense to them. The least common way accountants invoice for their services says Edmonton accountant is a flat monthly fee. An accountant must first have a complete understanding of the business owners business in order to provide a quote, but the price that they do charge, is based on all of the services that they’re going to provide every month. They will charge the same monthly fee every single month, no matter what i worked on for that month. Accountant may be working on a month-end, a business plan, but the price is the same. This is extremely advantageous for both the business owner and the accountant. By understanding very clearly the services that the accountant is providing, as well as how much they’re going to paying every month, a business owner knows what to expect, and can budget for the services very easily. The accountant on the other hand must be confident in their pricing because undercharging them would have them losing money, but also ensures that they are providing excellent services at that price or else their client will leave.
The next pricing structure says Edmonton accountant is a flat fee, but this time her service. Accountant may have a list of all of the various services they offer, with the price next to it. This often looks advantageous, because it will allow business owners to see the services, and know what they’re going to be paying. Some things are not included in those flat fees, such as business planning or things like making phone calls or photocopies. This ends up driving up the price. This allows the accountants to low price to the client in order to sign them on, and increasing their fees later.
The most popular pricing structure that accountants use is the hourly fee. Even though this is the most usual way, it can often be the least advantageous way says Edmonton accountant. The reason for that is, the longer the accountant takes to finish the file, the more they get paid. The business owner ends up wondering if the services are needed, and can end up cutting important services in order to save money. It also ends up being very difficult for the business owner to budget, because depending on what services are being done that month, the price could be very low or very high
One of the most important services that accountants can provide small business owners, is business planning, which helps business owners minimize the taxes that they pay says Edmonton accountant. However, when business owners are hiring accountants for their business, they have no idea what is a fair rate to pay them per year or per month. They end up paying for inadequate services, which not only doesn’t help them save money on taxes. This can be easily addressed, by helping business owners understand what they need to look for when they are hiring an accountant, and understanding how pricing works, so that they can find accountant that they enjoy working with, the pricing structure they understand.
The first thing that business owners should understand when they are looking for accountant to hire, is that they can and should not try to get prices over the phone. Accountants are bound by governing bodies to not give prices without developing a sound understanding of the entire business. It’s very similar to people who phone dealerships asking for the price of the car, without telling the car or what options they would like. Business owners should be certain that any braces they receive over the phone should not be trusted says Edmonton accountant. Reputable accountants will offer a free consultation to potential clients, where they get a complete understanding of the business in order to provide a quote.
Once they are talking to accountants in order to get quotes, they should understand the various pricing structures so they understand the quotes when they come in says Edmonton accountant. The flat fee per month structure is not one that is often done, but it can be when the most advantageous pricing structure for business owners. The price will be based on all the services that accountant will provide on a monthly basis, for the same fee every single month. Regardless of what is being worked on in that month, business owners will get charged the same price. Even if there’s a month and, or business plan in that month, business owners won’t have to pay more money. This can help them plan their finances, because they know what to expect from the bill.
A different pricing structure is the flat fee per service says Edmonton accountant. This is where the accountant provides a list of others services they provide with a price and how much is going to cost them to complete it. This may look very attractive, but business owners need to be aware that often certain things are excluded from those flat fees. If an accountant has to make filings, phone calls, or sometimes even photocopies, that can add up in the fees. This allows the accountant to price low, but charge hi.
The most common pricing structure is by the hour, which is difficult for business owners, because the longer an accountant takes to complete a service, the more they get paid says Edmonton accountant. This creates mistrust between the accountant and the business owner which doesn’t end up well.