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The article says
"How to agree fees and avoid disputes". yet the first line says "How to agree EXTRA work".
It's about time you "added value" merchants stopped trying to con us into conning our clients.
My Approach:
Is very simple.
A new client signs a contract note which specifies the task/s agreed. This contract refers the cient to the practice's "General Terms and Conditions of Business"; and a copy of this is sent/delivered to the client, together with the Letter of Engagement, which itself, further delineates the task/s and duties. I will not lift a pen until the contract note is signed and returned.
However, it is expressly stated what are deemed "Extras" and the cost of disbursements.
If I meet a prospective client and early on it is abundantly clear they are "Fee Shopping", then I wish them well and depart.
If clients are unable to recognise the service provided and its value, then personally, I do not want them.
It is all too easy to waste many hours, for example, on sending and receiving (and considering) emails: the clever clogs client will, if allowed, treat their accountant as a free advice service; if you let them!
I won't.
We extensively use fixed fees
For those projects we cant we advise the client of the hourly rate keep him/her advised of progress and try and bill regularly. From 30 April we will bill monthly once the accumulated time is above a set limit.
Correct me if I'm
wrong viola but aren't dinosaurs much loved and are the longest species to live on this planet. They must be doing something right eh.
They're extinct! Outdated!
They're extinct! Outdated! Even lawyers now accept that to remain competitive (and perhaps even in business and norecognise that they have to move away from a time spent on the clock basis to a more value added proposition
Hm: Added Value - Again!
They're extinct! Outdated! Even lawyers now accept that to remain competitive (and perhaps even in business and norecognise that they have to move away from a time spent on the clock basis to a more value added proposition
Ha ha!
Bearing in mind major lawyers are the top experts in bill-padding...
What are you suggesting, VIOLA, accountants transition to the private dentist model?
Hygienist £120 hour: normal check up £75: "Oh well, you urgently need a root canal treatment; which will cost £850...."
Porquoi? A professional's time is loaded by various cost factors, as with any other business: establishment, ICT systems and annual software updated, staff.
Essentially, one costs any business activity on its latent cost basis.
Perhaps we should move to an American model? Engage with clients on a time/risk/reward (i.e. Contingency) basis?
Unfortunately, time is embedded in any business: be it manufacturing, distribution and logistics and professional practice.
A fee quote can only ever be an estimate of probability.
Added Value: doncha just love al these ersatz "Management" buzz-speek words and expressions?
Any accountant in practice MUST add value to a client's business and/or personal wealth affairs: if not then the client is a disaster zone and thus so is the accountant.
ALL professional activity must by its nature of what they do, Add Value: Surveyor - spots problems: Lawyer - hopefully (Grits teeth) sorts problems:
Doctor and particularly, consultant: "Well Mr Patient, sorry to inform you, we have carried out all the correct diagnostic tests and you are suffering from Glencarry's Knuckle Syndrome, which can be fatal".
"However, we can cure this!"
Value Added: the patient now, hopefully (Tooth Again Gritted) will not pop his clogs. And thus gains the value of more years of life.
Client Satisfaction
This article reminded me of a conversation I had with a long standing client of mine not so long ago.
We got around to discussing the level of the fixed fee to be agreed for the following two years (he's a long standing client, been with me for 10+ years, mature business). His attitude was that he knows it doesn't take that long to deal with his affairs normally (I've told him this in the past several times) but he regards the fixed fee as a retainer, knowing he can pick up the phone or email me with a query or a thought and know I'm not keeping a clock on it. He knows I will bill additional fees if it gets beyond a certain level and is also happy with this, and also knows if his queries ramp up then the fixed fee will be adjusted to reflect this.
My advice to people with fees if to establish with new clients what they expect from you rather than dictating to them how you want things presented, and then tailor your fee to what the client expects and how they keep their records rather than what you dreamt might turn up. You can avoid a lot of year end problems by taking a look half way through the year, or even quarterly if it's a VAT registered business.
Another example I have is a new client using Cloud accounting software, who's determined to do it themselves. They are a new start up. They are on my usual fixed fee for a small limited company. I am spending a lot more time on it than I thought I would, but they are slowly getting the hang of things. Rather than lump a newco (with cash flow issues, as is normal at their present stage) with a large extra bill, I'll happily wear the additional time costs as I know that next year everything will be running smoothly and I'll both increase my fee with a happy client and be spending very little time dealing with their affairs.
Remember it's not all about extracting maximum amounts in the shortest time, it's about building relationships that last. Know your clients- if you treat them as numbers, then don't expect any loyalty. And whatever you do, never compete on cost (unless that is your business type, expect huge turnover of clients).
Are you an ex banker
by any chance Viola? We won't discuss the mess they got into by "adding value".
Dinosaurs are not extinct. Have you not heard of Jurassic Park.
I take your point about lawyers. When I went to see mine the other day he asked if I wanted to see his juggling act or was it the new jingle he put on his website. See I know all about the jingles that are supposed to endear you to a particular thought process.
as long as
You tell them in advance what you are going to charge then charge exactly that,,,no arguments..
Its down to you to decide what you think is fair....and if they dont like it they can toddle off somewhere else
we are all different
dinosaur
exotic bird
polar bear
penguin
Pray do tell
You tell them in advance what you are going to charge then charge exactly that,,,no arguments..
Its down to you to decide what you think is fair....and if they dont like it they can toddle off somewhere else
we are all different
dinosaur
exotic bird
polar bear
penguin
We would love to and do on all Accounts, Tax, VAT jobs etc.
We act as trusted advisor to many clients and we have numerous "projects" that are unscopeable at the outset.
I would appreciate your input into how to do so on these type of jobs, for which may thanks.