Busy accountants - billing for 'extra work'

In this the first week of the second half of the year, it's worth thinking about how it's been for you so far. And what you want to be different or just 'better' in the second half of the year.

I've included a link this week to prompt you to check out how you might benefit from mentoring support.

By allowing clients to choose what level of support they want I am echoing here the advice contained in this week's blog post about how accountants can stop doing extra work for free.

3 levels of mentoring support >>>

This week's practical business development tips

Inspired by conversations with my mentoring clients related to the topic of billing for 'extra' work...

1. Be professional: Of course you want to help your clients who were slow to get you the information you need to complete their accounts and tax returns. Absolutely it is reasonable to be firm but fair. You need to be professional in how you address the question of dealing with tardy clients and charging extra for the extra hassle.
2. MTD for IT: I agree that clients won't like the idea of additional fees but you will have additional work to do. And you're not a charity. If you want to get paid for the extra work you first need to help clients understand what’s required, how they can benefit from YOU doing this for them, and give them options about how to deal with the additional obligations.
3. Form filling: When setting fees related to completing official forms for clients, keep in mind you are NOT just charging for the time it takes to complete the form. For example, you are also judging what needs to be considered and reducing the prospect of a successful HMRC enquiry.

How accountants can stop doing extra work for free

One of the most common issues accountants raise with me is how can they stop getting caught out doing extra little bits of work for free? This has become more of an issue for many of them since they started quoting fixed fees.

The issue comes up less often for those traditional accountants who still claim to charge clients by reference to the time spent on their affairs. It's much easier for them to charge a fee for the time spent on all the extra little bits and pieces that come up.

That is NOT to suggest I ever advocate returning to such a system.

But it is one of the reasons I rarely suggest moving all such clients onto a fixed fee basis without any consideration for how often they require additional services or advice.

However, in general, I am sure that it is easier to win new clients if you are able to quote fees ahead of starting the work. That's the approach most people look for when they switch accountants or, these days, when they are looking for their first accountant.

So, how do you ensure you get adequately paid for additional exercises and extras you get asked to do during the year?

Continue reading…..>>>

Tough question

Why do you keep doing 'extra' work for free and hold back from planning a fresh approach that makes you feel better about yourself, instead of the frustration that comes from doing extra work for nothing.

I'm here to help and support you with my caring and pragmatic approach - debunking the hype and resolving misconceptions. Just pick one of the links below...

Regards

Mark Lee FCA

Mentor, debunker and speaker

PS: When you're ready, here are some ways we can work together:

1. Let's talk for a few minutes so you can decide if you want to take it further >>>

2. A one-off 30 minute 1-2-1 Linkedin clinic >>>

3. A one-off focused strategy call/zoom >>>

4. Regular 1-2-1 mentoring zoom calls >>>

5. Check out how you could benefit from the Sole Practice Club >>>

PPS: Remember. I only share some of my weekly biz dev tips on Linkedin. If you'd like to receive yours weekly please let me know here >>>>

I'm Mark and sole practitioner accountants turn to me for strategic insights, advice and support.

Membership of The Sole Practice Club gives you priority access and the benefit of learning from other sole practitioners who share many of the same issues, challenges and concerns. Others prefer 1-2-1 mentoring support.

I also Chair the Tax Advice Network, the UK’s largest network of independent tax advisers.

If you want to be notified whenever I write fresh posts on Linkedin, please click the 🔔 at the top of my profile here.