16 Oct Everything You Need To Know About Fixed Fee Accountants
It is very likely that if you are involved in the finance or business industry that you have already heard about fixed fee accountants. Or, perhaps you are one yourself. The fact is, many firms are implementing a fixed fee accountants model into their company, and you may be looking to do the same and you and your clients may have some questions that are going unanswered.
A fixed fee accountants model involves a client paying a set amount for their financial services. The cost of these financial services are determined by the provider based on a number of different factors, one of which is what they believe the value of the service is. This is best understood when compared to the hourly billing model, which is often the go-to for many financial firms and has been for a long time now. Due to recent developments in technology, namely cloud technology, many practices have implemented the fixed fee accountants model in order to reflect the increased efficiency and effectiveness of their new technology and the value that their workers can provide with their services.
What are the advantages?
There are many advantages to using the fixed fee accountants model.
One of these is that the use of cloud technology is enabling the workers to general financial data in near real-time. This allows the productivity and efficiency of the workers to be much more effective and works well at any time year-round. With hourly billing as a traditional method, workers tend to incentivize the amount of time put into work rather than the quality and the value of the work. With the new model, they are valuing the quality and value of the work in order to determine the cost of the service. In turn, the clients will be more focused on the cost of the time of your service rather than the add-on of the value of your work. In addition to all of this, many clients don’t like to be surprised by unexpected billed hours and would prefer to know the cost of the service upfront. Using fixed fee accountants can provide this for the clients.
What are the benefits of this?
Both the clients as well as the fixed fee accountants providing the service benefit from the new model. The use of this model shifts the focus from the time spent on the job onto the quality and value of the work done.
Some of the benefits for clients that come with this new model include a better service run at a similar cost, increased confidence in the financial worker providing the service and recurring services delivered at a high standard.
Some of the benefits for fixed fee accountants include the ability to provide more efficient and effective services to clients for higher profits, a decrease in concern to do with billing hours, increased opportunities for value-priced projects, and scalability for their practice.
When should a fixed fee accountants model be implemented?
There are a few things you should undertake before implementing this model.
This includes conducting regular check-ups with clients to ensure they are happy with the value you are providing through your services. Also, understand your client’s main issues with changes or implementations of this new model. Finally, you should aim to provide advice and direction for your clients.
In summary, fixed fee accountants are a new model emerging due to the rise of technology, especially cloud technology. It aims to charge based on the quality and value of the service provided, and thereby brings a lot of benefits for the clients and the fixed fee accountants themselves.