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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 | How Does A Monthly Bill Work For Accounting Clients

When this Edmonton tax accountant change their billing cycle from a hourly fee to a flat monthly fee with value billing, they were not able to anticipate all of the various ways that it significantly impacted their own business as well as their clients business. There are several things that people often asked them about what it was like to switch from an hourly fee to a flat fee, and here are the most often asked questions that they got.

What are the three types of clients they have in their accounting firm? This Edmonton tax accountant says that they only have all business clients, and those typical clients are unincorporated businesses that need tax advice in business planning, their annual corporate clients that need corporate year end filing as well as tax planning and business planning. They also have outsourced clients who are clients that use their accounting firm as their outsourced accounting department, doing payroll for the company, managing all of the payables as well as holding a monthly strategy session to discuss how to move the business forward.

The next question is how are all of their clients build? This Edmonton tax accountant says that all of the clients regardless of how much service they need every single month gets build a recurring flat monthly fee every single month.

The third question is do they charge extra for business plans? The answer to this question is absolutely not, they found that there clients that had the biggest need for business plans are also the clients who had the biggest difficulty in paying for those business plans It did not make sense to charge more to business that had the highest need for something and amounts that they could not pay.

The fourth question is do they charge extra for tax plans and financial plans? Again, the answer to this question is no because, this Edmonton tax accountant said that they did not want to continue doing year-end financials for client knowing that they were paying far more in taxes than they needed to.

The fifth question this accountant typically got is the financial plans and business plans be part of some platinum or premium plan? Again, the accountant says that they did not want to create a tiered pricing, they wanted to be able to offer all of the services that they can give for the same monthly bill. He wanted to be able to take on clients and help them in whatever way they felt it was most beneficial to them so that they can help them in the right way. If they were not able to help them in the right way they did not one take them on at all. Their goal was to help their clients accumulate wealth and stay in business. In this accounting firm they only get one option and one option only: the best products and services to help them be successful in business at one price.

Edmonton Tax Accountant | How Does A Monthly Bill Work For Accounting Clients

The statistic from industry Canada says that half of all Canadian entrepreneurs fail in the first five years, the three most common reasons that businesses fail is that they run out of money, they are unable to find customers, or they do not have the right team, this Edmonton tax accountant wants to significantly change those statistics and help more than half of businesses succeed. In order to accomplish this, they decided to change the way they build their clients, moving away from the hourly billing cycle towards a flat monthly fee. Every client that they have regardless of what services they need all pay the same amount. Many people have lots of questions about that and here are the most common questions they were asked.

Do they make more money on new clients or returning clients? This Edmonton tax accountant says regardless of pricing structure, all accountants make more money on returning and repeat clients then they make on brand-new ones. Since 15% of all entrepreneurs fail in the first year, by not helping their clients succeed, this Edmonton tax accountant firm says that they actually ensure that they are not making as much money as they potentially could. The reason for this is because when they lose a client after the first year, they have to spend more money in attracting a new client and then on investing on setting their company up in the system. If there able to significantly impact the success of their clients, they can make the money that they need because those clients will come back as a repeat customer, creating a win-win situation. The accountant will be able to make money, and their clients will be in business. This accountant says that there is essentially no motivation to sell something that is not going to work there only interested in creating a relationship with their customer and investing in their future if it is going to be worth their while and last more than just a year.

The second question that they often get is does this change the way clients work with their accounting firm? The answer to this question is absolutely yes, where the hourly billing cycle tends to create a relationship with the client that forces them to be at odds with their accountant, because they are worried about getting a higher accounting bill, so they do not bring problems or concerns to the attention of the accountant. Because of that, they end up with more problems. By changing the way the relationship is, by moving to a monthly billing structure, clients see the accountant as a strategic partner in their business that there able to call on or have a meeting with whenever they need without fear of additional fees. It also increases the compliance of what the accountant is asking their client to do, because they see it as a way of achieving success, not a way that their accountant is increasing their bill.