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Edmonton Tax Accountant | Billing Monthly Versus Billing Hourly

While most Edmonton tax accountant firmís bill their clients on an hourly basis, there is one accounting firm that has moved towards a flat monthly fee. There are many reasons why they decided to move to this pricing structure, and while it was extremely beneficial to their clients for a number of reasons, it also ended up being extremely beneficial for this accountant as well.

One of the most significant reasons why they decided to move to a flat monthly fee for all of their clients, was so that they can provide whatever services there clients needed without charging them additional fees that they might not be able to afford. There is an extremely high failure rate for entrepreneurs in Canada, 15% of all Canadian businesses fail within the first year, 30% in their second year, and 50% by year five. Spurrell and Associates wanted to help change those statistics, by helping businesses succeed. By charging them a flat monthly fee, this Edmonton tax accountant firm felt that they were able to give their clients all of the services that they needed in order to become successful, without making them pay additional prices. They found that the clients that needed the most help with additional services also the clients that were least likely to be able to afford them. So by eliminating that factor, they found that there far more able to help clients that need it, impacting their chances for success.

One of the most significant reasons why the were able to decide to invest on their clients in this way, is Edmonton tax accountant said that investing in their clients meant that they could help them find success in business, and that impacts the number of clients that there able to have as repeat clients in their firm. Since repeat clients are far more lucrative, by helping their clients succeed, they can impact the number of repeat clients they have, and decrease how many clients they would have to onboard simply because they were unable to be successful in business.

They also discovered that the clients that they did the most help would also reach out and ask for help a lot more readily on this flat monthly fee because they were not worried about getting a higher bill at the end of the month. When accountants charge their clients an hourly fee, they tend to have a different relationship with their clients, who might hesitate to ask for help when they need it because they are worried about paying higher accounting bill. By moving to this flat monthly fee, this Edmonton tax accountant is able to become a strategic partner for their clients. The suggestions that they made for their clients would also be taken into advisement and implement is a lot more readily, because those clients would also understand that the accountant is making the suggestions in order to truly help them succeed and not because it is going to result in them being able to bill more at the end of the month.

Edmonton Tax Accountant | Billing Monthly Versus Billing Hourly

When typical Edmonton tax accountant companies would bill their clients hourly, they put themselves into a difficult situation of the longer they worked on their clients files, the more they were able to build. This would create a situation of clients hesitating to contact their accountants, even if they absolutely need the help desperately, because they were worried about incurring higher accounting bills at the end of the month. When Spurrell and Associates decided to move to a flat monthly fee, they did so because they wanted to ensure that the clients were all getting the help that they needed in order to succeed without having to pay for additional services that they could not necessarily afford.

Not only did they enable themselves to be able to help their clients better by not forcing them to choose a service that they would not be able to afford, but it also help the clients be able to accept the help a lot more readily, because they did not have to pay for it. Even the financial and business plans are included in the flat monthly fee, because this Edmonton tax accountant feels that it is more important for their clients to get that help than it is for them to bill a higher rate for it. They see putting the work into their clients as an investment into their future, knowing that if there able to help their clients succeed, then those clients will be able to continue being clients for a long period of time.

They also discovered that by changing the way they build their clients, freed up a significant amount of time for themselves as well. Instead of spending a lot of time creating unique bills for every customer, sending them out and then having to explain and answer questions about those bills, this Edmonton tax accountant simply since the same invoice to every single client on the same day, and they do not have questions about the bills, because they know exactly what they need to anticipate every single month. They found that it freed up about two full business days every single month which equals five weeks every single year that they no longer have to spend on billing and billing questions. They can then spend that amount of time servicing clients.

Not only were they able to spend much less time on billing clients so that they could spend more time helping clients, this Edmonton tax accountant found that allow them to better allocate their resources. The reason is because there able to predict exactly how much revenue is coming in to their accounting firm every month, and how much time those clients need servicing on average, they know how many clients there able to take on and give a high level of service to. This helps them smooth out their revenue as well as offer an extremely high quality of service to all of their clients.