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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 | Hourly Fee Versus Monthly Fee

The difference between typical Edmonton tax accountant firms and Spurrell and Associates is the fact that typical accountants bill their clients and hourly fee which creates an adversarial relationship. Not only is the accountant getting rewarded for working slower on their clients files, they also create a situation where their clients are hesitating to reach out to their accountant when they need the most, out of fear of hire bills. Instead of continuing this model of billing, Spurrell and Associates have decided to bill their clients a flat monthly fee. Regardless of what services each client is getting, they all pay the same monthly fee.

Many people question this method especially when they find out that all services including additional services like tax planning and business planning is included in this monthly beat. The reason they decided to do it this way, is because they discovered that clients that actually needed the business planning and tax planning the most were also the clients that were more likely to be unable to afford it, or would hesitate to want to pay additional fees for the service. Therefore, Spurrell and Associates put themselves in a position of being able to offer the additional services that are going to help their clients succeed for no additional price.

The reason this is so beneficial to customers, is because it puts the emphasis on them becoming repeat clients. Repeat clients are far more profitable, so this Edmonton tax accountant company Spurrell and Associates would invest in their clients in the first year in order to help them become successful. Successful clients are repeat clients, and therefore Spurrell and Associates are able to justify spending so much more time on clients in their first year.

With this end up doing for the clients of Spurrell and Associates is solved the relationship between them and their Edmonton tax accountant as a partnership. If clients knew that they were able to contact their accountant any time they needed help, and that they had all this time invest in them in the beginning, there were more able to comply with suggestions that Spurrell and Associates said they needed to do in order to succeed. There able to help their clients succeed, and not force them to choose between succeeding and paying a high bill.

What this Edmonton tax accountant found after they moved to this billing cycle, was that they ended up saving a significant amounts of time by not worrying about how to bill their clients. A typical accounting firm has to figure out how much time their spending per client, create a bill for that and review it to verify that the bill was reasonable. Inevitably, they would always get emails and calls from clients questioning the bills and they discovered that this was taking up two full days every single month. By moving to this billing cycle, they no longer get clients questioning it every single month, because there simply getting a bill that they already know what they are going to pay. That helps them not worry about their bills, and help Spurrell and Associates be able to focus more on helping other clients in that time.

Edmonton Tax Accountant | Hourly Fee Versus Monthly Fee

Even though most accounting firms bill their clients and hourly fee and send out that Bill every single month, the Edmonton tax accountant at Spurrell and Associates have decided to change the way that they invoice their clients. Moving completely away from that hourly billing schedule, they now charge every single one of their clients a flat monthly fee. Reason why this is so beneficial, is because this avoids the situation of accountants being rewarded with a higher pay for taking a longer time to complete the files for client. Also, this allows Spurrell and Associates to be able to give their clients whatever services they need and not have to charge them additional amounts for that.

One of the biggest reasons this was a huge and if it to many of their clients, is because they found that the clients who actually needed the most amount of help were also the clients who were least able to pay additional charges for additional services. Therefore, they were able to extend help to more clients more often. As that of clients turning them down for additional services like business planning, by including that in the flat monthly fee, entrepreneurs were able to accept the help and increase their chances of succeeding.

Spurrell and Associates have three different types of clients and all of them get charge the same monthly fee. They have unincorporated businesses that get business and tax advice, they also have annual corporate clients where they do the fiscal year end and filing for as well as tax planning and business planning that is all inclusive, Spurrell and Associates also has outsourced clients where they are acting as their accounting firm for the businesses. For these businesses they do payroll, great payments, and have monthly meetings in order to discuss performance and how to move their business forward. Regardless of what products or services these three types of clients need, they all paid the same fee.

What this Edmonton tax accountant found it did for their clients, was allowed them to see the accounting firm as a strategic partner in their business so and that they could confide in and use their services whenever they needed to, and not whenever they could afford to. Spurrell and Associates found out that there was a higher rate of compliance for clients who needed help, because they no longer saw additional services as a way of billing them a higher fee. By becoming more successful in their own business, this Edmonton tax accountant able to see the additional service that they gave these struggling businesses as an investment into their future, and the ability to keep them around is clients longer instead of having to get new clients more often when ever entrepreneurs failed in business.