Let me be clear I’m not saying that everyone should or can do this. Simply that some accountants do it.
I was prompted to write this blog post after engaging with a couple of accountants on twitter. Here are their tweets:
Standing order mandates delivered to the bank. Get the customers paying in advance on fixed fee quotes. That’s the way to do it!
I do the standing order over ten months. They get January and February off. Then we negotiate next year’s fee. People like it.
Any extra work has the fee agreed in advance. Tax planning and tax credits on a value basis adjusted to actual when HMRC agree.
I think the two month post-Christmas payment holiday is a winner. Works for Council Tax!
Every one of my clients pay monthly fixed fees in advance. Nobody ever complains. It should be the norm. It is with Broome.
It helps that we provide a Very Good Service!! backed with money-back guarantee
During some of my talks I often raise the concept of ‘fixed fees’ as one way in which accountants can reduce the time they spend on the billing process, improve their cashflow and reduce arguments about fees. Those who are implacably against the idea seem to feel that they HAVE to charge clients by reference to their timesheets.
Look. If that works for you, by all means continue. But do recognise that more and more accountants are winning new clients who want to pay a fixed fee for their annual service. That’s irrelevant of course if your clients are happy, you’re happy and you’re winning new work that pays the fees you feel are fair for the work you’re doing. The thing is that many accountants, who operate in what we might call ‘the traditional way’, cannot honestly answer ‘yes’ to all 3 of those questions. What about you?
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