There was a time when small business owners preferred not to hire accountants to manage finances, simply because the hefty charge that these professionals often ended up asking for. But things seem to have undergone a long change since. With fixed fee accountants to your aid, you can say a big no to the hourly rate services and go ‘fixed fee’. .
To make their presence felt in the industry, freelance consultants, local book-keepers or even the practitioners of tax preparation are now going after the newest trend. In competitive markets in local these trends first appear after that they are accepted in higher ranks in the mid-tier and regional firms.
In the past a client used to pay the book-keeper on per hour basis for his services. But nowadays, with the market becoming way too competitive, most of the professionals prefer offering services as fixed fee accountants. As the statistics shows, only 25% book keeper are still charging on hourly basis where 75% are going with fixed fee or competitive charges.
Why Fixed Fee Accountants?
Typically, accountancy firms are likely to quote a one-off fee to their clients. Nevertheless, throughout the 12 months, you are most likely to come up with a number of accountancy and/or tax related queries, more so if you are new in the business. And in case you use a one-off fee professional and call him- you are likely to be charged every time, thus resulting in a sizable bill at the end of the year. Again, not availing an accountant’s service might mean missing out important tax saving advices. With a fixed fee accountant, you can get your queries and worries cleared, anytime and every time, without worrying about that extra remuneration.
The other benefits of hiring them include:
- You get the amount of your corporation tax computed well in advance.
- The accountant will hold a pre-year meeting to plan your tax
- He/ she will also help you return corporation and income tax.
- You will be acknowledged with updates of the business issues and tax relevance.
- The professional will keep records of annual finance.
- Statements of business activity. [BAS]
- Tax administration. [tax reminders and assessments]
- Records of regular management that will assist you to manage budget system, cash flow and tax payments.
- VAT demands and yearly taxation will be also taken care of, and practical business advice that will bring peace to your mind.etc.
Right in this moment, as the recession continues so continues the shifting of the style of book keepers. Statistics says 56% accountants are now going for fixed pricing and another 16% are offering market price or so called value pricing for their services.
Recent Past situations forced the companies to act severely to get control on cost structure by getting rid of huge amount of their services as well as rapidly falling sales. Now as thetrembling is gone, and companies found footing, they realize that requirements are not inflexible as much as they thought. Some companies take this as a chance of exploring the virtual services or outsourcing even they could take their skilled service in-house. So these cause pressure on local book keepers and pushing them to change methods.
Those accounts who think ahead they are not missing any chance to be more strategic and competitive. They are seizing every opportunity that comes in their way and transforming their strategy in this recession of share market. These practitioners want to maintain the growth of share market by specialization and use of niche markets. So when the recession will come to an end these self-assured executers will be in control of huge productivity and will leave their competitors way behind. Their skill of operational flexibility, churn rates for lower client and less operating charges will become their leverage in this line of work.