Becoming a client:
How we charge

How do I know how much to budget for your charges?

Experience tells us that the biggest fear for clients is the surprise bill! This is why, wherever possible, we set up a Fixed Price Agreement. If not, then we try to give a fixed price, or at least give our best estimate, in advance of starting a piece of work and update the estimate, if appropriate, along the way.

You should never be embarrassed to ask about the cost of an assignment or a piece of advice. We will always provide you with an estimate. We will also look to set up a payment plan for payment by instalments. After all, we�re accountants and we understand the importance of managing your budget and cash flow - it�s what we preach!

How are your charges calculated?

There is no secret science involved here. There are, however, several methods of calculating the price for a particular piece or cycle of work or advice, which depends very much on the type of assignment.

It is important to us that we provide value for money. So much so that, for specific advisory meetings, on occasion we simply agree with our client that they pay a fee, which the client perceives is consistent with the value they have received from the meeting. The premise here is that the ultimate arbiter of value is the client!

The overriding principle, however, is that the method we use must be matched to the type of assignment and this must be discussed and agreed in advance of starting the work. There may therefore be a mix of methods for any one client.

Here are the different methods we can adopt to agree our charges with you:

1. Hourly rate
2. Fixed Price Agreement
3. Fixed and standard charges
4. Contingent fees
5. Commission
6. Performance fees

1. Hourly rate

Traditionally this is the way accountants have charged for their fees and still has a place in many circumstances.

Each member of the firm has an hourly charging rate. The charging rate may be adjusted up or down depending on the level of skill and responsibility required for a particular assignment. We record our time in units of 5 minutes, 12 units per hour. Recording our time in this way forms the basis for the charge if we are billing on a time basis, or it forms an internal budgetary control if there is another basis for the charge.

The nature of some of our services mean that it is sometimes impossible to estimate in advance how many hours of work will be necessary to complete a piece of work, particularly with consulting or investigation work. In these circumstances we give our best estimate based on our experience of similar assignments and we always try to advise along the way as to whether actual costs are running in line with the estimate.

2. Fixed Price Agreement

When the assignment involves an annual cycle of work we encourage the setting up of a Fixed Price Agreement. Here we set out a programme of the annual work to be undertaken, then agree and commit to the price for that work.

The Agreement typically includes unlimited telephone support so that there is nothing to inhibit you from speaking to us for fear of the �clock running�. The Agreement explains the scope of the agreed work and the procedures for varying the services and for agreeing a fee for any additional services, a �Change Order�. The main purpose of all this is to avoid any surprise bills

The Agreement incorporates a payment plan for monthly payments.

Click on the link below to download an example of our Fixed Price Agreement:

Fixed Price Agreement

3. Fixed and standard charges

We may simply agree a fixed price for a particular piece of work.

With our payroll service, for example, the price is fixed by agreement. It will be calculated based largely on the size of the workforce and fixed for a period, which is normally a year. It will normally change only if there is any significant change in the workforce. If there is a Fixed Price Agreement in place for an annual cycle of work the payroll charges could of course be included within that, but not always.

For several types of work we have a menu of standard prices which are available on request. This typically includes company secretarial tasks, such as appointment and resignation of directors or change of registered office. It also includes matters such as the provision of mortgage references and certain corporate finance research products.

4. Contingent fees

Certain work we undertake lends itself to contingent fees. Typically this would be a corporate finance assignment where the outcome is uncertain and risky. Here we agree on the desired objective for the assignment and fix a fee or a fee range dependent on the result. (There may also be a minimum retainer and/or an abort fee.)

5. Commission

This is the normal method of receiving payment for financial services work and we normally receive payment direct from the service provider. We do, however, perform some financial services work on an hourly basis by agreement.

The charges are transparent in so much as we always declare to you the amount of commission we earn from any assignment.

6. Performance fees

For portfolio management, an element of our fee is related to the investment performance of the portfolio.

How often will you send an invoice?

Unless a Fixed Price Agreement is in place our charges are normally invoiced following completion of an assignment or cycle of work. We may raise invoices on account, either regularly by agreement at the outset or ad hoc throughout the course of an assignment if it is prolonged.

Unless we arrange an instalment payment plan, invoices are payable immediately upon delivery.

The Fixed Price Agreement incorporates a payment plan for monthly payments by standing order and in this case a monthly invoice is sent out to evidence the payment and enable the VAT to be reclaimed.

What methods of payment are there?

Where a regular payment by standing order or direct debit is not in place, we accept payment in cash, cheque and by major credit or debit cards.

For payment by credit card we reserve the right to charge a 1.7% credit card fee, which will be added to the invoice total at the time of processing payment.

We operate a system called Fee Plan. This has been developed by Premium Credit Limited in association with the Institute of Chartered Accountants in England and Wales. With Fee Plan you may spread payment of our invoices over 6, 10 or 12 months. The invoice, with the addition of an administration fee of �20 and interest at a competitive rate, is paid by monthly direct debit direct to Premium Credit Limited.