Instead of the hourly billing that most Edmonton tax accountant firmís bill their clients, Spurrell and Associates decided to change the way they invoice their clients in order to directly impact their ability to succeed in business. Industry Canada says that 15% of all businesses fail in the first year, 30% of all businesses fail by their second year, and half of all businesses fail before being in business five years. The reasons why these businesses failed is because they were unable to attract customers, they were unable to hire the right team, and they ran out of business. Spurrell and Associates saw these reasons as avoidable with a business plan, and wanted to be able to offer business plans to all the clients that needed it. The biggest problem with this, is that clients that need business plans the most, are also the clients that are least able to pay for those business plans. They knew they needed to change the way they invoice their clients, in order to impact their ability to succeed.
Instead of charging their clients hourly, the Edmonton tax accountant spell and Associates decided to bill one flat monthly fee for every one of their clients. Regardless of what services they need to. By doing this, there able to ensure that all of clients that they have gets all of the services that they need without impacting their bill. This allows them to give a predictable bill for their clients to pay and also receive a predictable income for their accounting firm. They just typically have a lot of questions because this is such an unusual pricing structure.
One of the most common questions they ask is how come they do not charge extra for business plans? Because this Edmonton tax accountant spell and Associates wants to be able to give their clients all of the services that they need instead of giving them options on services they need but cannot afford. All clients at Spurrell and Associates get one option: the best products and services to help them succeed at one price.
The next question is how can they make money when they are spending a significant amount of time on new clients for one price? The reason they can do this at Spurrell and Associates is because regardless of the pricing structure, accountants make more money on returning clients because even when they charge an hourly rate, setting up the client and their files cost a significant amount of money that the only clients that are lucrative and accounting firm are the repeat clients. By significantly impacting their ability to succeed in business, there just increasing the number of repeat clients that there able to get.
By ensuring the success of their clients, there able to have even more repeat clients by changing the way they invoice their customers, not only impact this accounting firm, but they are also impacting the clients they have significantly by increasing their success rate in business.
The Edmonton tax accountant swirl and Associates decided to change the way they were invoicing their clients. They discovered that an hourly billing cycle created a relationship with their clients that could be described as adversarial. Where clients would question the amount that the accountant was doing them, and hesitate to reach out whenever they had a need, triggering larger problems later, because the client was worried about getting a larger bill. They did not want to have that type of relationship with their clients, so they had decided to move towards a flat monthly fee. What this did was allow them to bill the same price for every single one of their clients, regardless of what service they needed, so they could feel free to get the services that is the most beneficial for them.
The one thing that this Edmonton tax accountant saw that it did for them, was not only did it give them a predictable bill that their clients could budget to pay for, but it also gave accounting firm predictable income as well. On the most common questions that this Edmonton tax accountant received on changing their billing to monthly was how much time does this free up in their accounting firm? They were genuinely surprised to see exactly how much time it saved their accounting firm. Instead of taking so much time to create unique invoices for every single one of their clients, and then sending out those invoices only to receive multiple questions from clients on those invoices because they have questions about the bill or problems about how much the bill is. Instead, this Edmonton tax accountant was able to save about 2 to 3 days every single month by sending the same bill every single one of their clients.
The next question that people have about this is how does that flat fee allow the accountant to allocate resources and provide a higher level of service? Because this Edmonton tax accountant is saving upwards of five weeks every single year because there are no longer spending time billing, there able to deliver a higher level of service to more clients because of the free time. Also, because they are able to predict how much revenue is coming into their accounting firm on a regular basis, they can make plans on how to allocate those resources. By knowing how many clients they have and how much time they take and how many staff they need to help those clients, they can calculate how many clients they can then bring into their Edmonton tax accountant firm, and give them the same high quality of service.
By changing the way they invoice their clients, their changing the relationship they have with their clients, and the success of their clients positively and significantly. I was the Edmonton tax accountant firm to be able to give their clients a higher level of service, so that they can continue to help them succeed.