Three Ways to Pay Business Accountants That Work For the Accountant & the Client

Often farmers and business owners feel, when itadditional money as long as it falls within your agreed
comes to some of their employees, hired hands,upon budget. And if it doesn't they will need to consult
migrant workers, etc. that if they are not watchingwith you before undertaking it.
them - then their people are not working. We can allHave a "per-project" fee. Instead of or perhaps in
understand that. For many of us it is too easy toaddition to a budget for the usual compliance activities
confuse activity with progress and we'd rather see our- filing your taxes in a timely manner and all the other
employees busy, even if it what they're doing is athings business accountants do routinely, why don't you
waste of their time and our money.negotiate fair fees for special reports or filings.
So when it comes to our small business account, is itFor example completing loan documents, P&L
any surprise that we feel the same way. We knowstatements, meetings with auditors etc. Setting
instinctively (whether it's actually true or not) that weper-project limits keeps everyone on the same page -
are over paying for routine items, that while we aresort of outs a frame around items that are not
paying their fees they are pushing our work along to acommonplace and do not appear in the quarterly
less expensive associate - and they are pocketing thebudget.
difference.Use performance based fees. This is an ideal way to
Here are a few ways to approach your billinghandle billing for the creation of accounting related
relationship with your accountant. Use them as a guidestudies and documents when considering a new
to a discussion about how you and your small businessopportunity or a joint venture of some sort. The base
accountant can work together more effectively.fee could perhaps cover the business accountants'
Showing up with some potentially practical ideas will lethard costs only. The more successful the results the
him or her know that you've given it some thought andmore they receive. There are no doubt many other,
you are not going to simply opt-in to their cookie cuttermore realistic probably, scenarios where you and your
"standard" billing process.small business accountant can work together and they
If the small business accountant says, "You're the firstget paid based on the results they achieve.
client to propose a fee structure other than ourNaturally these examples are just a shot in the dark,
standard by-the-hour billing," or "We have always usedthey may not work or may not even be legally
an hourly fees for business clients," tell them, "Fine, butpossible for business accountants in your jurisdiction to
that's not how we will work with our small businessoperate on the basis I've described. Nevertheless they
accountants in the future, the question is whether youcan be starting points for discussion, triggers to help
want to work with us going forward or not.you and your small business accountant think of even
Always use the expression "or not" - it lets them knowmore creative ways to do business together.
you are perfectly willing to let them off the hook andIt is not my intention to show you tricks to get free or
move on to business accountants who will work withcheap business accounting services. It is to help you
you differently than they normally do.and your accountant consider alternatives that will
Set a budget. Simply put, you put a cap on their fees -make you feel better about your relationship. A clear
what they can charge in a quarter, for routine filings,understanding of how and on what terms you and
for a certain matters, for meetings with fellowyour business accountants are working together will
professionals on your behalf, etc.. This budget can beput you need in a frame of mind that allows you to
cast in stone or flexible - there can be different limitspick up the phone whenever there is an important
on different types of transactions, whatever. Thebusiness decision and call your accountant - BEFORE
important thing is that you are not forking over a blankyou act, rather than afterwords.
check, they know that if they exceed what youIt is my intention to make you feel better, knowing that
agreed upon - it's on them, and most importantly thatjust because you can't watch them - they probably
you are paying attention.are working on your behalf and anyway, you are being
If your accountant uncovers additional work that wasbilled based on a fairly negotiated agreement between
never considered but which must still be performed,the two of you.
they can do it without having to come to you for