Technology gives cloud accountants the opportunity to change how things have always been done, from clients using apps to sophisticated reporting software. And as the reasons to move away from time-based pricing stack up, billing has to change with it.
1. Monthly billing brings certainty
With clients paying monthly, you know exactly how much money is coming in.
Not only does this allow you to budget more effectively, it lets your clients do the same as they know what they’ll be paying.
With fixed fees, there’s no fear of jobs being dragged on for bigger cheques. And clients won’t rue being charged for emails, calls and meetings. They’ll have every incentive to help. This will help strengthen relationships. And help you realize more of your fees. Practices are writing off, on average, £187,523 in fees per year.
Setting up direct debits is now simpler than ever with an online billing system like GoCardless. You can make the process seamless and easy for you and your clients — no more chasing up invoices.
2. It fits the software that cloud accountants need
Whether you run on QuickBooks Online or Xero, software costs are now a part of the accounting and bookkeeping landscape. That means it’s up to cloud accountants to make them work for them.
With fixed-fees paid monthly, you can roll the cost of such software into your regular invoices.
This isn’t the same as just adding the price of the software onto your client’s bill — with fixed-fees, you can create bespoke monthly packages that better suit their individual needs. This lets you pitch your services at a variety of levels and upsell more lucrative options to potential clients looking for a comprehensive solution.
3. A new metric for growth
Whereas tracking your success by hours billed only showed how busy your limited team were, Monthly Recurring Revenue (MRR) can track your growing cloud client base and client spend.
Thanks to new automation technology like Receipt Bank, client numbers aren’t tied to the size of your team. Receipt Bank partners often double their client number per bookkeeper with our software.
MRR then becomes a KPI for your business growth, showing how efficiently your team is using their time and their tools.
How Value Pricing can save you money
Fixed-fees aren’t just simpler, they save you money. Practices write off on average of 18% of their fees every year, but it doesn’t have to be this way. Find out how you can boost your recovery rate and get rid of the hidden hole in your revenue in our Ebook “Cut Your Losses: Why written-off fees are not a fact of life”.
Download the Ebook to find out:
- Three ways to fix of written-off fees
- How to boost your recovery rate
- How to make your bookkeeping system write-off proof