Make the move to monthly
A long standing frustration among accountants is the annual billing relationship they have with many of their clients. But on top of this we’re also hearing that getting paid (no matter when!) can be a bit of a challenge in tough economic times.
As an accountant you may present your bill with the final set of accounts. But if you think about it, there is no compelling reason for the customer to pay you until they get in touch next year. Monthly billing is definitely a better way to go. It’s good for your clients because they won’t be landed with a potentially large bill in one hit and they can budget for the expense. You have a more even income stream.
Making the switch to monthly or quarterly billing is easier than you think. A simple way of doing this is to list the services you’ll be providing your client, and as part of the list include the cost of Xero. You will find that by using Xero you can add GST/VAT Return Preparation and a Monthly Management Report for a very small increase in cost to you, but this will be of huge value to your clients. The aim is to turn your core services into a menu of offerings and build out the bundle that is right for each client.As part of your monthly review you can quickly process items such as fixed assets and depreciation – which as well as providing better quality numbers, significantly reduces the amount of end-of-year processing you need to do. In effect you’re spreading your work over the period.
The move to online accounting is happening fast. Lots of accounting firms have seen the light and to stay competitive everyone firm needs an online strategy. There are hundreds of accounting firms on the Xero network and having assisted them to make the transition to online we’ve developed a wealth of knowledge and experience that will help and guide you and your firm to take that step.
Last in the series
This is the final part in my series in which I look at the pain associated with old desktop software in accounting practices and how Xero can be the client engagement platform. You can find out more about how Xero is designed for accountants here.