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E-Myth – “Why most small businesses don’t work & what to do about it”

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Edmonton Tax Accountant | Changing The Fee Structure For Accounting Clients

Under a typical pricing structure from most Edmonton tax accountant firms, clients would get build for every hour that the accountant works on their file. What this typically does, is creates a relationship that is strained between client and accountant, because the longer an accountant would take to work on clients file, the more there able to build. This ends up having the client questioning if accountant is working fast enough, or pitching more products and services to the client than they actually need in order for them to increase their fees. However, there is an accountant and Edmonton who is changing all of that by changing how they are invoicing their clients. Moving away from an hourly fee towards a flat monthly fee, Spurrell and Associates are ensuring that their clients are getting the services that they need at a bill they can plan on. Once they have an invoice that they can count on on a regular basis, this makes budgeting in their business for that amount easier, and helps entrepreneurs manage cash flow.

What Spurrell and Associates also discovered invoicing their clients this way, was that rather than having a relationship that had the customer not wanting to reach out to the accountant for fear of larger bills, and turned into more of a partnership type relationship where the customer new that they could reach out and talk to their accountant any time they needed without getting an additional charge. Whether it was coming in for meetings, sending information or calling for advice, they could freely get help whenever they needed it without being afraid that they would impact their finances for doing so.

One of the reasons that caused this Edmonton tax accountant to charge their clients this way, is because they also recognized that the clients that needed additional help in the form of business plans or tax plans were also the clients that were least likely to say yes to paying extra for the services. Being afraid to pay for an additional fee, entrepreneurs would decline the help that they need the most to succeed out of that fear. By being able to provide that service included in the monthly fee, business owners can then start saying yes to the services that are going to significantly help them succeed without fear of it higher bill.

With this Edmonton tax accountant firm, they did not want to position themselves as getting paid additional amounts in order to help their clients, they want to be able to take on any client and help them in any way that they need, or it is not a great fit for them. By investing their time on new clients, they can ensure that they are impacting their clients success positively, which in turn are creating return clients to their accounting firm. This way, they are creating their own long-term clients, that are going to be able to increase their chances of success.

Edmonton Tax Accountant | Changing The Fee Structure For Accounting Clients

One of the biggest problems that Edmonton tax accountant found with the hourly billing that most accountants use, is not only is it unpredictable for clients to know what they are going to be paying each month, but it also means that it creates unpredictable income for them as well. It also puts and accounting firm in an awkward position of charging more when they work slower on a customerís file. Customers would typically recognize that, and start to wonder if their accountant was taking a longer time to finish their file simply to get a higher bill. In order to change this dynamic between their clients and their firm, Spurrell and Associates decided to move towards a flat monthly fee that all of their clients pay.

Regardless of what type of client they have, each one of them pays a flat monthly fee, and not only that, every type of client that they have pays the same monthly fee every single month. They have three different types of clients at Spurrell and Associates, they have an incorporated businesses that needs help with business planning, they also have annual corporate clients, that need to get there fiscal year ends complete and filed as well as having tax planning and business planning in an all-inclusive service. And the third type of clients that they have are outsourced clients. Basically, they are depending on Spurrell and Associates to be their accounting firm, doing full services like payroll, payables and monthly strategy meetings. No matter what type of business they are, and what services they need it all get charged the same amount.

Even though most Edmonton tax accountant firms charge additional prices for business planning and tax planning, Spurrell and Associates did not want to do this for some very simple reasons. They found that the businesses that were at greatest risk for failure, were the ones that had the biggest need for business plans. In order to positively impact of the number of businesses that could succeed and avoid common reasons for business failure, or also the businesses that were far more likely to not say yes to paying additional prices for business planning. Out of fear of getting a higher bill, these struggling businesses would continue to struggle which would negatively impact their ability to stay in business longer.

Spurrell and Associates would rather invest on these struggling clients to help them succeed and therefore have repeat clients, rather than having to replace 50% of their clients every single year due to the high failure rate in business. This Edmonton tax accountant understands that repeat customers are far more lucrative than new customers anyway, by being able to increase their chances of succeeding early on in their business relationship can ensure that this Edmonton tax accountant company has far more customers that are increasing their chances of succeeding then not. By working with all businesses who are poised for success, Spurrell and Associates can minimize the number of clients they have to replace each year due to them not succeeding.