You knew this subject was coming if you read last week’s newsletter.
I’m going to break it into pieces, so you don’t have to spend your entire day inside this email.
Let’s start with a common objection to billing upfront: “How do I know what to charge if I haven’t done the work yet?”
That question makes sense, especially if you’re used to billing by the hour or upon project completion.
Enter project minimums.
A project minimum is the amount you need to be paid for a project before you’re willing to take it on.
Most of the time, the minimum I quote is right. I’d say 90% of the project minimums I set are enough. When the work is done, I don’t feel the need to bill anything extra.
Do I ever feel bad if the project takes less time than expected?
No. The client knew the price at the beginning of the engagement, and they agreed to it. The value was clear. There’s no moral obligation to lower the price just because the work went smoothly.
That’s part of the point. The client gets certainty. You get paid upfront. Nobody waits until the end of the project to find out what the bill will be.
There are clean-up accounting projects where I “overbill” and will apply “overpayment” to future work, but that’s not as common.
What about the other 10%?
Sometimes the records are messier than expected, or a client adds something new after the engagement starts. When that happens, I explain to clients why I’m billing them again after the project is completed. The explanation will be included in the invoice and the project video summary.
It’s rare when clients push back on a second bill. Usually, it’s only about $300-$500, so it’s not a large amount.
Clients also know upfront that I’ll bill separately for work that falls outside the original scope.
For tax returns, out of scope work could include: a new business, a rental property, or an additional state return.
For accounting projects, it could include: A new bank or credit card account, a new workflow, a new entity, or a business activity
Project minimums + clear scope + billing on completion for out of scope work = billing upfront success.
Stay tuned for more on this topic.
The old firm model is optional.
If you’re launching your own firm, or rebuilding the one you already have, join Logan in Salt Lake City this May for Launch Your Firm.
Use code LATEBIRD for $100 off.
Your ticket includes one free year inside a Counter cohort, so the momentum doesn’t end when the event does.
Here’s a sneak inside Counter, and what we having coming up so join the 300 members like you.
Check Out These Future Events In Counter
5/6 - Google My Business Working Session
5/7 - AI for Accountants with Chad Davis
5/21 - Monthly Booked & Balanced Bookkeeping Session with Erin Pohan
▶ Know someone who’d love this? Forward it their way and automatically enter into our Referral Program and win free stuff (like Counter memberships).
▶ Got something cool for our audience? Let’s get it out there. DM us on LinkedIn and let’s do it.
▶ Was this email forwarded to you? Subscribe! »»»
