Moving to fixed-fee billing? New reports help you know what to charge
Whether you have already implemented a fixed-fee or value-based billing system, or it’s something you’re looking to do as you scale your business – the fact is, more accounting and bookkeeping businesses are now using this billing method. Thanks to developments in cloud technology and accounting software, billing best practices have evolved to better reflect the increased efficiency and value that accountants and bookkeepers can provide with their services.
So what is fixed-fee pricing?
A fixed-fee pricing model is pretty self-explanatory. It entails the client paying a set amount for their accounting or bookkeeping services. Prices are determined by the accountant, based on a number of factors, one of which is the perceived value of the service.There are many reasons fixed-fee billing is starting to take over traditional hourly billing including:
- Cloud accounting programs and add-ons allow accountants and bookkeepers to generate financial data, at any given time. They can work faster and more efficiently, as well as have full visibility across insights on the work they do for clients, at the click of a button.
- Clients like knowing what they’ll be charged. Knowing what the service cost is upfront gives them peace of mind.
- The focus moves from how much time is spent on the work, rather on the value of the service provided.
How do you know what to charge?
Analysis of the data and work you’re doing for your client is one of the key factors in determining your fixed-fee billing schedule. And that’s where XBert steps in. Like everything we build: this was a product of user feedback. Our accounting and bookkeeping practice users wanted easy access to more detail of their client’s activity, shown over time, so they can more accurately price services for their clients.
And so, our new Activity Count report was built specifically for that need. The Activity Count report analyses the last year of activity data, with breakdowns across quarters being the key focus, allowing practices to easily see trends that help shape the pricing for their clients. This report is interactive, with the ability to drill down to months to also spot trends at a month-by-month level. It’s also organised by the key business functions of Payables, Receivables, Banking and Payroll.
The benefits of fixed-fee billing in your business
- Using a fixed-fee billing structure gives you predictability and structure in your accounting or bookkeeping business.
- They don’t typically require much management.
- You can automate billing on a monthly basis through a third party, making the payment process streamline and consistent.
- Everyone knows what’s expected and your client is confident in what they’ll be charged: happy days on both ends.
Got questions about how XBert can help you moved to fixed-fee billing, streamline your practice workflow, reduce your manual tasks and increase your profitability?
Start a free trial now and one of our Customer Success Team will be in touch.