We all received emails from companies offering us a opportunity for a fixed fee accountancy service. Is this something which works for clients. There are pros and cons like many things.
An accountancy firm like your operation is a business. It has overheads the most important being the staff. Good staff come with a associated cost based on level of experience. As a traditional rule accountancy firms calculate their staff hourly rate based on their pay, a allocation of overheads and a profit margin.
So whilst a fixed fee basis might have its merits, are you getting the level of service you require. The answer needs consideration. The fixed fee companies operate on the basis of clients not asking them to many questions to ensure the time staff spend on their work is less. So what happens if you have a business that needs more support than the normal business. It is likely that is where frustration sets in as the time taken is normally then assessed.
With a traditional accountancy form the fees will not be fixed but will be reviewed on a annual basis but you get the best of service as someone isn’t sitting with a stop watch to get things done as quick as possible or questions answered with minimal thought. A good Accountancy firm will give you a estimate of fees then assess normally at end of year time to budget. They then work with the client to assess how they can help the client realise benefits.
Contact us for more detail. We pride ourselves on being proactive and reactive which many fixed fee services don’t provide.