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

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1 Fixed Monthly Fee - Planning | Accounting | Taxes | Consulting

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Edmonton Tax Accountant | How Do Monthly Fees For Accounting Clients Work

One way that this Edmonton tax accountant so that they could significantly impact the success of their clients, is by moving away from the traditional hourly billing that most accountants have with their clients. Instead, they implemented a flat monthly fee for all of their clients regardless of the type of service that they were receiving. The reason they implemented this, was because they wanted to not only impact how successful their clients were, but also wanted to change the relationship they had with their clients.

How this Edmonton tax accountant figured that a flat monthly fee was going to impact the level of success of their clients, is because entrepreneurs have an extremely high failure rate in Canada. 15% fail in their first year, 30% fail in their second year, and by their fifth year, 50% of all businesses have closed. There is many reasons why these businesses close their doors, but the top three reasons according to industry Canada is that they run out of money, there unable to find customers, and they do not have the right staff. All of those reasons can be included in a business plan to help entrepreneurs overcome those challenges. However, the businesses that needed business plans the most were also the ones that were most unable to pay for them. By including that service in a flat monthly fee, this Edmonton tax accountant is able to ensure that businesses that need certain services are able to get it.

This Edmonton tax accountant also understood that an hourly billing system with accounting clients was contributing to a difficult and strained relationship with those clients. The biggest reason for that is because clients would not ask for help from their accountant when they actually need it, because the did not want to get a larger accounting bill at the end of the month. They felt every time they reached outdoor asked for a meeting with their accountant, they would have to pay an additional price. However, putting them on a monthly billing plan, meant that clients start to see their accountant as a partner in their business to strategize with. Someone they could call any time they had a question or a problem, because it was not going to trigger a larger bill. They also took the advice from their accountant more seriously, because they saw it as advice it was going to help their business grow, and not another service that their accountant was recommending in order to increase their bill.

By moving to a flat monthly fee, they were able to significantly impact their clients businesses, and help them be more successful in their business. That also allowed the accountant themselves, to ensure that they have a steady stream of repeat clients in their business, and not having to continually attract new clients because there is are failing in business. By doing this, they significantly impacted their own business as well as their clients and the lives of those clients as well.

Edmonton Tax Accountant | How Do Monthly Fees For Accounting Clients Work

Because the flat monthly fee that this Edmonton tax accountant implemented in their business is so unusual, many people have lots of questions about the differences between the flat monthly fee and the typical hourly fee that accountants charge. They want to know how it is beneficial as well as how it works.

The first question that many people have for this Edmonton tax accountant is what are the three types of clients that they have? Because this accountant sees all businesses, three different types of business clients they see are unincorporated businesses, who require tax advice and business planning. They also have corporate clients that need annual corporate year end statements as well as filing, tax planning and business planning. The third type of client that they have at this accounting firm is outsourced clients who are clients that use the accounting firm as their accounting department. The work on doing their account payables, payroll, as well as a monthly strategy meeting to discuss performance and data as well as how to move their business forward.

The second question that people have for this Edmonton tax accountant on their flat monthly fee, is how are all clients build? Regardless of what type of client they are, if there are unincorporated businesses, annual corporate clients, or outsourced clients they all get the same recurring flat monthly fee every single month.

Many people want to know if they charge extra for tax plans, financial plans, or business plans? This Edmonton tax accountant says they absolutely did not want to create tiered pricing, or additional fees for additional services. Because the businesses that typically need tax planning or business planning are also the clients that are less likely to be able to afford it at the time. By ensuring that all of their services are included in the flat monthly fee, this Edmonton tax accountant can ensure that all clients that are working with them are able to afford all of the services they need to be successful.

This accounting firm says that the reason they are willing to charge the same amount regardless of what services all of their clients need, is because that allows them to invest on those clients whenever they need to invest. That will allow them to help those clients become successful, so that they continue to be in business and continued to be clients. Since regardless of accounting firm, accountants usually do not make any money on brand-new clients, so they need to have repeat clients in order to make money regardless of what the pricing structure is. By investing significantly on the success of their clients, their significantly impacting the ability of their clients to remain clients. By moving to this pricing structure, they can ensure that their clients get the help that they need to be successful, and they in turn end up having clients for life.