When delivering a service, product or solution many businesses may offer a fixed fee. This makes it easy for the customer to understand how much they need to budget, and the service provider knows how much money they will receive.
Amelie would like a new kitchen, however she has fixed budget of £10,000. Luckily Gorgeous Kitchens Ltd sell and install kitchens, and Amelie really likes some of the designs. Sam from Gorgeous Kitchens Ltd presents some options to Amelie and she chooses the option that she likes that is within her budget. She places an order, and within 6 weeks she has the kitchen that she wanted. Everyone is happy.
We believe that fixed fees are essential for the majority of our clients, as it enables our clients to budget for a known cost, and know what they are signing up for.
For certain projects however, we still work on a time basis. For example, bookkeeping can vary dramatically from month to month, so for growing or sporadic businesses we bill on an hourly basis. However, we still give estimates, and notify clients before exceeding estimates so that the client is still in control.
For complex projects, such as acquisitions or mergers we also bill via an hourly basis, again with a detailed estimate beforehand.
Fortunately for our clients, we are extremely experienced in the usual annual requirements of businesses. Therefore we confidently provide fixed fees to our clients; that we stick to.
We would discuss with the client their requirements and then list in their letter of engagement everything that we have agreed to do, e.g.
- Statutory Accounts
- Corporation Tax Return
- Annual returns to Companies House
- Director’s personal tax returns
- Payroll for the company
- Review of quarterly VAT returns
- Regular Business Reviews
- Telephone and email questions as required
We would then be clear that the following are out of scope:
- Business Plans
If you would like to discuss how to introduce fixed fees into your business, and establish whether they could work for you, please contact us.