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Fixed fees or hourly rates? In various sections of this web site, there
are fixed fee levels set for particular kinds of work. These include Payroll Services, Asking a
Question on Line, Tax Return Preparation, and various factsheets that are referred to in various places. Reference should be made to
the particular web pages involved. There are a number of other areas of work
where we charge a fixed fee, such as filing certain company forms, or
preparing certain certificates. In all cases the fixed fees are calculated
on a basis that, on average, we calculate will provide an adequate return on
an hourly rate for the time spent by the particular staff involved. In most other areas of professional work,
we can offer fixed fees based on our estimate of the work involved, or the
value to the client. We will always agree and negotiate a fixed fee at the
outset of any engagement. Operating under fixed fees has the advantage to the
client that the fees can be budgeted for with absolute certainty. If a fixed fee is not agreed in advance the
fees are based on the time spent, and the skills required, (which will
determine the level of staff required), and hence the hourly rate to be
charged. The fee will also be affected by the degree of risk involved, and
also the value of the work to the client. Fees for accountancy and audit work – whether fixed or on a time basis. It follows that fees for accounts
production and audit work will be related to the quality of the accounting
records, the number of transactions and the complexity of the work required. We will advise a client whenever we become
aware of improvements to the system of record keeping, so that fees for
accountancy and audit work can be controlled. See ‘Bookkeeping Advice’. The number of transactions involved and the
complexity of the work will depend very much on the nature of a client’s
business, and therefore are largely not subject to as much control as the
system of record keeping. This is why fees will differ for different types of
trades, and trades having different legal structures, such as sole traders
and limited companies. With a new client, we will usually be able
to assess the likely fee level, based on our understanding of similar trades,
after we have reviewed the actual system of record keeping adopted. Even when a fixed fee has not been agreed,
we are usually able to give a fee estimate to a new client, and even agree to
cap a fee at a particular agreed level in the first year. In subsequent
years, we would discuss the actual time spent and the actual fee that should
have been charged with the client, so that the client can the fully
understand the future fee levels and the factors that govern them. Other areas of professional work. The basic principle of charging for the
time spent will be followed, but depending on the nature of the work, we may
be able to negotiate a fixed fee or a fee calculated according to a
pre-defined formula, to help the client in budgeting. In most cases,
professional rules would prohibit us for charging fees on a results basis, as
this could affect our objectivity, for example in making claims for tax
allowances. What are our fee levels and our hourly charging rates? We have been a paperless office for 10
years, obtaining cost savings from the application of new technologies. As
holders of the ACCA Quality Assured Mark, our systems and procedures have
been independently assesses as being of the highest quality. As a result, our overheads are lower than
accountancy offices operating in a more conventional way. This means that we find that costs are
usually about 20% to 25% lower than accepted market rates, and we share the
benefits of these savings to our clients. |
Peter Brown & Co is a trading name of Undershot Ltd,
registered in England , no 4114468. Director :- P.Brown FCCA, FCIE,DchA,BSc.The registered office is Acomb
Grange, Grange Lane, York, YO23 3QZ.
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