One of the most common questions asked of accounts is "what's your hourly rate?".
At Cliftons we believe to have hourly rates is unfair; to our clients and to us.
You see, those accountants who operate on the archaic method of charging by the hour are actually doing their clients a massive disservice. This is because they're getting paid more for when they're inefficient. What we mean is that the more time it takes to do a job (that is, being inefficient) the more an accountant under the old-school method will charge their client. How unfair is that!!
And likewise, being efficient means not being paid what they might deserve.
Consider this - an accountant with 20 years experience is asked a question about the tax implications of a certain business sale. Because of his experience and knowledge he can answer the question after doing some checks and calculations, and on advising the client of the correct way to structure the sale and how to deal with the proceeds the client saves $56,540 in tax compared to what they thought. Is this worth the 2 hours at an hourly rate to take the call, do the checks and calculations and write the advice? Or is it worth $4,000?
With this in mind, at Cliftons we don't have hourly rates. Simple as that.
What we do is consider each job or project separately, and match with that the best person on our team to do the job and the value inherent in the completed work. We then give a price upfront in writing for agreement, along with a time-frame for completion. And we also offer a discount for upfront payment. Once this has all been settled, we start the work.
And we believe this is fair to everyone involved.