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How much time is spent on billing now as opposed to previously? The Edmonton tax accountant says that they used to spend a significant amount of time on billing their clients. They would have to keep track of all of the hours that they worked for every client, and what they were doing for each customer. Then they would have to ensure that they were creating invoices to reflect that time, and then have someone review that invoice to ensure its reasonable. After that, then they would have to send out the bills to all of the clients. And since those bills were based on hourly rates, they clients never knew how much they were going to be getting build, and often had questions so they would call or email the office. This billing and invoicing would typically take 2 to 3 days every single month to do. Now that they have implemented a flat monthly fee for all clients, invoicing is super easy because everyone that gets build gets the same bill, and because their clients know exactly what to expect, they do not get phone calls asking for explanations.
The second question that people often have is does this free up more time in order for accountants to help their clients? That is one of the most significant benefits that they solve for their Edmonton tax accountant firm, was that they were able to put all of that time that used to be spent into billing and invoicing back into helping their clients succeed. There able to give their clients a higher level of service, and help even more clients succeed.
The third question that lots of people have for this Edmonton tax accountant that is implemented flat monthly fees is that how do flat fees allow the accounting firm to allocate resources and provide a higher level of service? Since the accounting firm knows how much revenue they are going to be getting every month, and how many clients they are going to be servicing, they can calculate how many accountants and how much staff they need in order to provide that service. Because of that, there also able to calculate how many more clients there able to manage, and provide the same level of service that they are known for. Essentially it creates predictable bill for clients to be able to pay, and predictable income for the accounting firm.
One of the contribute factors to this Edmonton tax accountant to move to implementing a flat monthly fee in their business, was to impact the number of businesses that fail in the first five years. Industry Canada says that half of all Canadian entrepreneurs end up failing within the first five years, and the reason why they fail can come down to one of three main reasons, not being able to find enough customers, running out of money, and not having the right staff. This accounting firm saw that being able to give a higher level of service to their clients is one way that they could impact the success of those businesses, but in order to do so they had to stop billing hourly, and Bill monthly. The reason for that is because in order to give the clients the services that they needed to succeed, they had to not invoice hourly, but provide them the services that they needed to succeed.
There are several questions that many people have about this type of billing, since it is so unique to the accounting world, and the first question is do they charge extra for business plans? As Edmonton tax accountant says that this is one of the most significant services that they want to be able to provide at no additional cost. The reason is because they found that most of the businesses that had the biggest need for a business plan were also going to be the businesses that had the biggest problems paying for the additional service. So in order to enable the businesses that need it most to get it, they decided to include business plans in the flat monthly fee.
The next question that many people have is that they make more money on brand new clients or returning clients? This Edmonton tax accountant says that regardless of the pricing structure, repeat or returning clients are far more lucrative by far. By investing their time into their clients, giving them all of the tools they need to succeed, they can ensure that they are creating a client base of successful and returning clients. They are willing to put in the time that they need to create successful clients, and they will make their money on those clients when they come back and return year after year because their successful. By impacting the number of businesses that they work with that succeed, they can ensure that they have clients for years to come instead of having to find 50% new clients every year.
By impacting the level of success of their clients, this Edmonton tax accountant is able to ensure that they have successful clients for years to come, which creates a win-win situation for their clients as well as themselves. When they help their clients succeed, they will also be able to become successful as well.
