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Fixed Price per unit outsourcing / not per hour

Fixed Price per unit outsourcing / not per hour

I'm looking to outsource the preparation of all my clients' Ltd small (FRSSE) company accounts.

However, I'm looking for an agreed cost per set of accounts (preparation through to xbrl submission) rather than paying for a block of hours.

Any recommendations gratefully received.

Many thanks.

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By Kevkava
23rd Feb 2016 16:13

This doesn't look viable - unless all your clients produce exactly the same standard of bookkeeping; and none have complex reporting / tax considerations.

Assuming you have handled all the relevant work previously, you should have a good idea of the time needed for each client; as a basis to agree a fee you''re prepared to pay. But even then, personally I would be hesitant about extending the outsourced work through to filing - where is the space for you to review the draft accounts etc and make any final adjustments? After all, your clients will expect you to be producing accurate information, and to be secure in your knowledge of their affairs (putting aside any connected issues about e.g. P.I.).

 

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By nodhedz
23rd Feb 2016 16:50

agreed

Totally agree with your comments Kevkava.

I'd simplified my OP, so of course I'd see the accounts, review etc. It was merely the fact that I wanted one fixed-fee for a 2 part process (an initial production, then submission following my review and amendments). In house, we ensure that the clients' book-keeping is top-notch as we spend alot of time reviewing this aspect; and none have anywhere near complex reporting or tax.

Thanks for your comments though. 

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By baigsu
25th Feb 2016 18:18

Good point. 

Good point. 

We often submit for clients but would always a sign-off in advance.  Fixed price is a good mindset though and N should be applauded for being front foot.

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23rd Feb 2016 21:53

A wild assumption here but........
Are you a bookkeeper with a lot of client that you want to keep "in house" rather getting them to go else where and losing the business??? Do you want to charge a 'total fee" to the client and the accounts production cost is included in this???

If so why dont you go to a number of accountants and tell them you will give then 50, 100 client accounts to produce or whatever it is but your looking for the fees to be capped at say £500 - £750. Loads of people / firms would take this type of work and a lot of people do fixed price work.

How much are you thinking you want to pay to make it worth your while? Also are you or they doing the corporation tax computations and filling???

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23rd Feb 2016 23:28

Totally viable

I think this approach is totally viable. There are a lot of outsourcing and offshoring companies here in the Philippines (I myself work for one such company). 

How we work is we sign up with a client and they train us in their best practices, what software they use, teach us about the specific requirements for that client, and then we agree a fee for the job.

I myself (being British) am an ACCA affiliate with experience using KashFlow, Xero, QB and Sage. The majority of the workers here are CPAs.

Quality work can be produced at a fraction of the cost of having this done inhouse. And by taking the time at the initial set up to train and talk with the offshore staff you can retain control of how the work is done and ensure quality throughout the entire process.

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By nodhedz
24th Feb 2016 16:14

Good assumption but...
...@ bumpdinkwhallop I'm not a book-keeper. Good thought though re other firms. Might think about that as a possibility. Thanks.

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By nodhedz
24th Feb 2016 16:17

Are many firms...

...in the UK now outsourcing to you in the [email protected]Simon1983

thanks.

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24th Feb 2016 23:19

We mostly deal with USA clients

...as the owner had been working in USA for several years before returning here and setting up the company.

When I joined last month one of my roles was to open the UK market so I'm actually just now starting to do some preliminary research into what types of clients we want to work with.

There are lots of outsourcing companies here, but mostly they deal with Australian and American businesses. I think this is because there are more Australians and Americans living here and Philippines has stronger links to those countries than to the UK

I think a lot of UK firms use companies in India. Or there are the self employed work from home accountants that some firms in the UK seem to be using.

I worked 6 years in the UK for a private practice that did quite simple accounts so I can help get a team here up to speed. We can then either access your computers remotely or do everything in the cloud.

Feel free to send me a private message if you want to exchange contact details and discuss this is more detail.

Thanks.

 

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