Monthly Invoicing

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We want clients to make use of our service and expertise so we bill on a monthly basis.  Our logic being that if you pay for a service on an ongoing basis you will be more inclined to use it.  What this also means is that you pay a small monthly charge equivalent to 1/12 of the annual fee.  To keep things simple we bill in line with your financial year so we both know where we stand.  This does mean that if you join us part way through a financial year then you will need to pay a catch up bill to bring you in line year to date.

You do not end up paying more it is simply a matter of cash flow timing.  Please bear in mind that if we do not charge a catch up fee we will be out of pocket for example your year end is March and you sign up in December.  You will only be billed three times which is 3/12 of the annual fee.  You don’t have to be an accountant to work out that is not sustainable.

Contents

  1. What is monthly billing
  2. What is a Fixed Fee
  3. What if it is not covered by my Fixed Fee Quote
  4. Why Standing Order
  5. Example of Invoicing
  6. Cancellation of Service

What is Monthly Billing?

Exactly what is it says on the tin.  We raise an invoice each month in line with the agreed fee and you pay it monthly.  We raise the monthly bills on the 1st of the month and they are due for payment by the 6th of the month.  No big invoices, no nasty surprises.  You shouldn’t be surprised every time you get a bill from your accountant – you will never receive an invoice from us having not agreed it in advance.  If you have more than two invoices outstanding at any one time then we stop servicing your needs.

What is a Fixed Fee?

Fixed Fee billing means that you pay what we quote and not a penny more.  You will never receive an invoice from us for a different fee than agreed.  If we are rubbish at quoting that is our problem not yours and we would not pass on that burden to you.

What if it is not covered by my Fixed Fee Quote?

If you ask us to carry out a task that is not covered in your monthly fixed fee then we will tell you.  You don’t work for free and neither do we.  What we will do is advise you on what needs doing and how and then provide you with a written quote for carrying out the task.  You can then make a decision whether you want to learn how to become an accountant or whether you wish to do what you do best knowing that we’ll get the task completed and for the price agreed.

Why Standing Order?

We ask all clients to set up a Standing Order for payment of their standard monthly fee which is due on the 6th of each month.  Standing Orders do not incur any charges on either party and as our price is fixed for at least 12 months it does not seem to make sense to pay out on processing fees when it is not required.

Example of Invoicing

I started part way through my Financial Year

If you wish to become a client mid-financial year then there will be things that your old accountant has done and we will not need to carry out so whilst we will quote you on the standard monthly billing moving forward your catch up bill will be based on what needs to be done.
Company year end is March and we raised a monthly quote of £130+vat.  The first monthly bill raised will be on the 1st October for £130+vat.  In September we will raise a one off catch up bill equivalent to the number of months we are though the year being April to September which is 6.  The bill will not be £130+vat times 6 as there will be tasks that have already been completed.
In this example the only items that need catching up will be the annual accounts and corporation tax which are included at £87.50+vat per month.  The catch up bill will therefore be £87.50+vat @ 6 months.

Cancellation of Services

If you stop using our service then you cancel your subscription and we stop invoicing you.   As long as your invoices are paid up to date we can transfer your Xero subscription across to you and you are free to go.  If you want to have all of the jobs completed that were included in your subscription then you need to have paid the equivalent of 12 monthly payments in that year.  This means from a timing point of view the most sensible time to cancel is in the last month of your financial year.  That way you have paid for all items for that year and we will complete for you before handing over to your new accountant making things nice and easy.  If you do leave mid-financial year then we will refund you the difference between what had been invoiced year to date and the value of the work completed.

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