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Edmonton Tax Accountant | Why Accountants Should Bill Monthly

Even though the typical Everton tax accountant firms bill their clients an hourly fee, that may not be the best pricing structure that they could utilize. The reason is because an hourly fee tends to create strained relationship between accountants and their clients. When the reasons for that is because clients who are struggling hesitate to seek out help from their accountants because they are worried about a higher fee at the end of the month. Also, they end up turning down necessary services, because they are worried that they are unable to pay it, or that the only reason their accountant is suggesting it is because they want to be able to bill them more. Even though a flat monthly fee is not a very typical way that accountants build their clients, and actually provides many benefits some surprising and some not.

Regardless of the type of client it is, the Edmonton tax accountant Spurrell and Associates bills all of them the same way. They have three different types of business clients in their firm including outsourced clients, who are clients that use Spurrell and Associates as their accounting department. They get their accounts payable, their payroll as well as monthly strategy meetings. They also have annual corporate clients, who need tax planning and business planning as well as fiscal year end corporate tax filing done. The third type of client that they have is unincorporated businesses, and while these make up the minority of businesses will happily take on these clients who typically get tax advice and business planning. Regardless of the level of service each of these customers typically gets, they will pay the same flat monthly fee.

Some people may wonder why every single one of those customers gets the same bill regardless of how much work they require each month, and the Edmonton tax accountant Spurrell and Associates say that the reason is because while some of them will need more help in one month or another, and all tends to even out. Also, by investing into those businesses, they might spend far more time on the first year setting those businesses up for success, but the fact that they will be successful means that they are going to be repeat customers into the future, making it lucrative for them to put the time and energy into setting them up for success.

Another reason why this Edmonton tax accountant firm would decide to not charge anything extra for additional services, is because they discovered that the clients who needed the help of the most, were the ones who are less likely to be able to afford to pay for that service at that time in their business. However, if they were able to help them succeed in business, then those clients would go on to become repeat customers . By helping their clients succeed, there helping ensure they had repeat customers for themselves and their future as well.

Edmonton Tax Accountant | Why Accountants Should Bill Monthly

Billy an hourly fee is what most Edmonton tax accountant firms have always done, but one accounting firm is questioning the logic behind that. By changing the way they are billing their clients, they are also changing their success rate, changing their relationship, and helping their own firm grow and succeed. There are so many benefits to moving away from an hourly billing cycle to a flat monthly fee for all clients that it makes sense for accountants to change the way they do business.

The first thing that Edmonton tax accountant firms need to understand with this pricing structure, is that all clients will be on the same pricing structure regardless of what they need in business. The reason for this is so that they can ensure the same flat monthly fee for all of their clients. By ensuring that no matter what their clients need, there able to provide that without worrying if they can afford it or not, allows this Edmonton tax accountant firm to be able to help their business succeed in all ways.

What this also ends up doing is helping their clients succeed and not charging them additional for every question they have every problem, means that there clients tend to see the Edmonton tax accountant firm as a strategic partner in their business that is helping them succeed, rather than a company that is profiting off of them. They see all of the value that they are getting for their consistent monthly bill, and not only reach out to their accountant whenever they have problems or issues so that the problem does not snowball become worse before they mention anything. It also increases their compliance rate, because there able to see that the suggestions that their accountants are making for them are truly for their own benefit and success, and not so that accountant can profit off of them.

It is also significantly help to this Edmonton tax accountant firm by freeing up a lot of their time that they used to spend on billing. Because they would have to keep track of every single service that they were giving their customers, creating a bill based on that, reviewing the bill to ensure that it was reasonable and sending it out take a significant amount of time, but also their clients would have a lot of questions about the bills because they were never certain what those bills would be every single month. The firm and their staff ended up spending about two full business days every single month which does not sound like a lot of time until a person considers that that equals five four weeks every single year of just working on billing. By moving to a flat monthly fee, this accounting firm is able to put that five weeks of time back into servicing their clients much better. Creating a win-win situation, for both their accounting firm as well as their clients.