While most Edmonton tax accountant firms bill their clients on an hourly basis for the services they provide, one accounting firm Spurrell and Associates have decided to change the way they invoice their clients, in order to give them the services that they need without forcing them to choose based on what they could afford of the time. This has been extremely beneficial to both the accounting firm as well as their clients. Here are the questions they were asked to help understand how this pricing structure works.
What are the three types of clients that Spurrell and Associates takes on? They have three different types of business clients unincorporated businesses that need tax advice and business planning, they have annual corporate clients who need fiscal year ends done, year end filing, as well as tax planning and business planning. And they also have outsourced clients where the accounting firm acts as their accounting department helping them with their payroll, accounts payables, and monthly strategy meetings.
How are all clients build? Regardless of what type of client they are and how much work they need every single month, the clients all are charged a flat monthly fee that recurs every single month. They have no additional fees for creating tax plans or business plans at this Edmonton tax accountant firm. They found it Spurrell and Associates that business planning and tax planning should be a regular part of the services that their clients were getting, they did not want to end up doing year-end financials for client knowing that they are paying more taxes then they should be.
Do they charge extra for financial and tax plans? They decided not to charge any additional for the tax plans or business plans because they found that the businesses that needed to have tax planning and business planning the most were also the ones who would be at least likely to be able to pay for it. Therefore Spurrell Associates decided to include tax planning and business planning in their flat monthly fee. They called it an investment into their future. If there able to do the plans for these businesses, the businesses become successful and spill Associates continue to have a client moving forward into the future.
The next question is are the financial plans and business plans part of a premium package? And again the answer is no, all of the flat fees that the clients pay are exactly the same price regardless of what type of service they get. Spurrell and Associates cited that they only wanted to take clients on in their business if they were able to help those clients out in the right way. By helping them accumulate wealth and stay in business, there able to give the clients the service that they need, not options on the level of service that they need but are not able to afford. The one option they get at this Edmonton tax accountant firm is the best service possible to help them succeed at one flat fee.
The typical Edmonton tax accountant firms charge their clients an hourly fee, but one accountant is changing that pricing structure for all the clients that they service. Instead of an hourly fee for all of the work that they provide, they started charging a flat monthly fee for all their clients, regardless of what level of service they get. They discovered many benefits to this pricing structure, and the most significant benefits they found were extremely beneficial to their clients. Many people have questions about how it works, and here are some of those questions.
The first question is due Spurrell and Associates make more money on new clients or returning clients? This Edmonton tax accountant said that they make far more money on returning clients, and it has always been that way. But by investing more time into their clients early on in the relationship, helps these clients become successful which allows them to continue to be clients well into the future which creates a successful long-term relationship between Edmonton tax accountant and client. If Spurrell Associates is going to do the work to creates business plans, financial plans and year ends, they know that they are setting their client up for the most success, which will pay off when that client is in business in future years, and they did not have to find a new client to fill that spot because they were not successful.
The second question is does this mean clients see Spurrell and Associates as a strategic partner in their business? The answer to this question is absolutely, this Edmonton tax accountant found that clients who are on a flat monthly fee called whenever they needed help, booked appointments whenever they ran into problems and had much more open communication with their accountant than they did when it was an hourly bill. They also saw that the amount of work that they were able to get for their monthly fee was significant, and they started to be able to comprehend that the things that their accountants were asking them to do or not because the firm is going to profit off of it, but because they truly wanted to help their clients succeed.
The next question is how much time was previously spent on billing? Spurrell and Associates said that there is a significant amount of time that went into billing. They had to keep track of all of the time that was spent on each project so that they could create a bill with that amount on it. They also had to review each bill to ensure that it was not to high have a bill for their clients, then they had to send out each of those bills. They Edmonton tax accountant also found that because their clients were not able to anticipate what the bill was, they had many questions that they also had to spend significant amounts of time answering. By moving to this flat monthly fee, they were able to save approximately two days every month which equaled five weeks every single year.