Hello. Thanks for reading.
I recognise that many accountants are moving towards a fixed monthly fee for accountancy services, rather than the old annual fee note system.
How does this work in terms of the point at which you are engaged? For example.
Today is 14 February 2018. I meet three new Ltd Co clients all of whom wish to pay monthly, as follows:
Client A's year-end was 30 June 2017 and I would be preparing and submitted accounts within a month
Client B's year-end is 30 April 2018 and I will be preparing and submitted accounts around June 2018
Client C's year-end is 31 January 2019 and I will be preparing and submitted accounts around March 2019
Under my current system, I would:
Client A - bill 2017 and probably 2018 upon completion and then start a monthly standing order in July 2018
Client B - bill 2018 upon completion (June 2018) and then start a monthly standing order in July 2018
Client C - offer monthly standing order to start April 2018
As you can probably tell I am still thinking along the lines of an annual invoice and 12 payments on account.
I don't know how to transfer this to a monthly fee system:
If I start Client A on a monthly standing order, I would be preparing 2 years worth of accounts within the first 5-6 months, and losing out
If I start Client B on a monthly standing order I would be preparing 1 set of accounts after 5 months. What if they then decide to terminate the engagement?
Client C is much more straight-forward, but is it far that I would probably take 12-15 months payments, before doing any work (if no VAT/payroll)