Accountants, of all professionals, are the ones who should be best placed to set their fees so as to cover their costs and generate a sufficient profit, writes Mark Lee.
The challenge when starting out though is that often there are only limited fixed costs to cover, no direct staff costs and only negligible variable costs. As you start to build up your practice how do you decide what to charge?
The historical approach was to focus on what you wanted to earn per hour and then to set an hourly charge-out rate. I sense that few start-up practices can afford to operate on this basis any more.
As one accountant mentioned to me recently: “The idea of quoting fixed fees and value based fees isn’t new or revolutionary any more. It’s the norm.”
This may overstate how far we have come but it does confirm my view that start-up practices need to identify fixed prices for their services rather than quote hourly rates. The only common exception is where...
About Mark Lee
Mark Lee works almost exclusively with savvy sole practitioners who want more out of their practice. More clients, more money, more time, more satisfaction - or everything!
An accountant by profession, Mark moved away from the provision of professional advice in 2006. He is now a professional speaker, mentor, facilitator, author and debunker.
Mark Lee is a realist and regularly debunks myths and hype related to his areas of interest and expertise. His keynote talk for audiences of accountants is How to STAND OUT and be more than 'just another accountant'.
Mark is passionate about helping accountants generally so is a keen blogger and commentator in the accounting and tax press. He is consultant practice editor of AccountingWEB and has written hudnreds of articles here that have been viewed over a million times.
Check out how he could help you here: www.BookMarkLee.co.uk/savvy
Mark stopped giving tax advice himself despite being a past Chairman of the Chartered Accountants’ Tax Faculty. He is however Chairman of the Tax Advice Network - the UK's highest ranked lead generation website for tax advisers and accountants. The network also publishes a weekly practical tax update for accountants in general practice and full tax support, on demand too. You can also use it as a lead generation resource for local people seeking tax advice from an accountant.